Jira Code : MAMS-102
Requirement
Mohd Ali Mohideen Supermarket wants to have a process for Vendor Payment based on the following flow.
Process and Roles needed as follows:
- Prepare payment Pending Clerk Accountant Payable
- Prepare payment Approve Accountant Payable
- Prepare payment Authorize General Manager
- Receive payment for signature Managing Director
Prerequisites
- We will enable Vendor payments under Approval routing subtab in accounting preference to create approval workflow for vendor payment.
- Provide the list of the permissions required for each role and the associated employees details in each location.
Deliverables
We will create an approval flow to verify the Vendor Payments. The custom roles will be created and updated for the approval flow.
Role customization
Customized roles will be created / updated for Clerk Accountant Payable, Accountant Payable, General Manager and Managing Director.
Approval setup for Vendor Payment
First Level Approval
- When a Vendor Payment is created by the Clerk Accountant Payable, a button called “Submit for Approval” will be shown in the record. Only the Clerk Accountant Payable and administrator roles can view this Button.
- When the Clerk Accountant Payable clicks the Submit for approval button, the Custom Approval status will change to “Submitted for approval”.
- Then the record will be locked for all the users except for the administrator.
- We will setup a Reminder portlet in the “Account Payable” role and the users with the specific role can view the Vendor payments which needs to be approved.
Second Level Approval
Once the submit for approval is completed by the Clerk, the Vendor Payments will be displayed in the Reminder portlet of the NetSuite Dashboard for the approver and goes to the accountant payable for the second level of approval.
- The accountant payable and administrator can view the “Approve” and “Reject” buttons.
- Once the User clicks Approve Button, the custom approval status will change to “accountant payable Approved”.
- An email will not send to the creator to notify the accountant payable has approved the Payment.The user can attach the searches in the reminder portlet
- And a reminder will be displayed in the General manager’s dashboard regarding the Payment’s Third level approval pending.
- And the record will be locked for all the users except for the administrator.
Third Level Approval
Once the second level approval completes by the accountant payable, the General manager will get notified from their NetSuite Dashboard and payment goes to the General manager for the Third level approval.
- The General manager and administrator can view the “Approve” and “Reject” buttons.
- Once the User clicks Approve Button, the custom approval status will change to “General manager Approved”.
- And a reminder will be displayed in the Managing Director’s dashboard regarding the Payment’s Fourth level approval pending.
- And the record will be locked for all the users except for the administrator.
Fourth Level Approval
Once the Third level approval completes by the General manager, the Managing director will get notified from their reminder portlet in the NetSuite Dashboard and payment goes to the Managing director for the Fourth level approval.
- The Managing director and administrator can view the “Approve” and “Reject” buttons.
- Once the User clicks Approve Button, the custom approval status will change to “Approved”.
- An email will send to the creator to notify them that the Payment record is approved.
- And the payment record will be locked for all the users except for the administrator.
Rejection by Approvers
If the Vendor Payments has been rejected by the corresponding approver, it will navigate to a custom record to enter reject reason. We can use the existing Rejection reason custom record Purchase Order: Reject Reason for storing the reason for rejecting the vendor payment.
We will rename the custom record name to Transaction: Reject Reason and Name of Purchase order field to “Transaction”.
The rejection email will be attached under the subtab in reject records. The reject record will create every time a vendor payment gets rejected.
In all approval stages, the approver can Reject the vendor payment by clicking on the “Reject” Button.
- Once the user clicks the “Reject” button, it navigates to the Reject reason record.
- The approver can enter the Reason for rejection and submit the Reject reason record.
- After submitting the Reject reason record, the Reject reason record will attach to the payment record.
- The custom approval status will change to “Rejected”.
- The record goes to the previous level of approval when we reject the record from any level.
- The “Resubmit For approval” button will appear in the payment record.
- The user can update the payment record and click the “Resubmit For approval” button to submit the payment for the approval process.
- Once the user clicks the “Resubmit For approval” button, the custom approval status will change to “Submitted for approval” and the payment goes to next level of approval and the approval process will continue.
Vendor Payment Approval Tracking
Users can track the approvals of the vendor payment by checking the field “Vendor Payment Approval Status”. This field will show the status of Vendor Payment Approval.
| Status | Details |
| Pending Submission | The Clerk Accountant Payable has created the Vendor Payment. But the verification of the payment cannot be completed by Clerk Accountant Payable. |
| Submitted for Approval | The Clerk Accountant Payable has done the initial verification and have submitted for Accountant Payable’s Approval. |
| Accountant Payable Approved | The Accountant Payable has verified and approved the vendor payment. Then the payment has submitted for General Manager’s Approval. |
| Accountant Payable Rejected | The Accountant Payable has checked and rejected the vendor payment. Then the payment can be resubmitted for the approval again. |
| General Manager Approved | The General Manager has verified and approved the Vendor Payment. Then it is submitted for Managing Director level approval. |
| General Manager Rejected | The General Manager has checked and rejected the vendor payment. Then the payment can be resubmitted for the approval again from General Manager. |
| Managing Director Approved | The Managing Director has verified and approved the Vendor Payment. Then the Vendor Payment approval process is completed, and it has fully verified. |
| Managing Director Rejected | The Managing Director has checked and rejected the vendor payment. Then the payment can be resubmitted for the approval again from Managing Director. |
| Pending Re-submission | The Vendor Payment has been rejected by any of the approvers (Accountant Payable/General Manger/Managing Director). Currently the payment needed to be corrected by corresponding user and can resubmit for approval. |
Reminder Portlet
Reminder searches will be created for Accountant Payable, General Manager and Managing Director role to find the Vendor Payments waiting for their approval. The user can add the reminders in the dashboard by clicking set up on the reminder portlet.
Assumptions
- When the approver rejects the record, it always goes to the First level of approval. And the user has to start the approval process from the first level.
- Always the payment is created by the clerk, we are not providing any validation to the payment record creation.
- Approval permissions will be taken from the standard roles also, only the customized role that we assigned the permissions will have the permission to perform the approval process.
- The reminder portlet option is user-specific, only the specified user will get notified in the approval process.
- Dashboard customization is out of the scope of this development.
- The custom approval status field will be disabled, and the user cannot be able to modify the status.
- All buttons will be visible to Administrator Role employees.
- Workflow and Script will be working only for the newly created records and not for existing records.
- The approver can reject and enter the reject reason in every approval level.
Risk
- We will enable the vendor payment approval routing in accounting preference. We hope currently you are not using electronic fund transfer. If we enable the Vendor payment approval feature, we cannot use the electronic fund transfer feature at the same time.
- We will only add the permissions to these roles only for completing these approval cycle.