Use the Approval Limits window to define approval limits for adjustments created in Receivables, requests for credit memos initiated from iReceivables, and write–offs for receipts. Receivables uses approval limits that have a document type of Adjustment when you create an adjustment in the Adjustments, Submit AutoAdjustments, and Approve Adjustments windows.
When you enter an adjustment that is outside your approval limit range, Receivables assigns the adjustment a status of Pending until someone with the appropriate approval limits either approves or rejects it.
The Credit Memo Request Approval Workflow uses approval limits that have a document type of Credit Memo when forwarding credit memo requests from iReceivables. The workflow sends a notification to an approver if the request is within the approval limit range for the currency and reason code specified.
When you write off an unapplied receipt amount, Receivables uses approval limits that have a document type of Receipt Write–off. You cannot write off a receipt amount that is outside your approval limit range. You can only write off positive amounts.
You define Adjustment approval limits by currency and dollar amount. You define Credit Memo approval limits by reason type, currency, and dollar amount. You define Receipt Write–off approval limits by currency and dollar amount. The approval limits for write–offs are separate from, but cannot exceed, the system level write–off maximum amount that you define in the System Options window. You must specify both lower and upper approval limits for each approver.