Oracle Fusion AR Transaction Approval Setup – Step-by-Step Guide (2025)

Learn how to configure Accounts Receivable (AR) transaction approvals in Oracle Fusion Cloud. Step-by-step setup for AR invoice approval workflow with roles, rules, and sources.

What Is AR Transaction Approval in Oracle Fusion Cloud?

Oracle Fusion Cloud ERP now supports workflow approvals for AR transactions such as invoices and credit memos. This newly introduced feature—Receivables Transaction Review and Control—helps organizations ensure that all receivables undergo appropriate validation before being finalized or sent to customers.

By enabling this feature, finance teams gain:

Improved financial control
Stronger audit compliance
Automated approval workflows

Let’s dive into the full step-by-step setup process to configure this powerful capability in Oracle Fusion AR.

Step-by-Step: Configure AR Transaction Approval Workflow in Oracle Fusion Cloud

Step 1: Set Up Receivables Transaction Sources

Navigation: Setup and Maintenance → Manage Transaction Sources

Action: Create or edit your AR transaction source.

Key Field – Completion Action:

No Control: No approval required

Role-Based Control: Approval based on user roles

User-Based Control: Approval based on specific user assignments

External Control: Used for external approval management

Best Practice: Use Role-Based or User-Based Control for internal automated approvals.

Step 2: Define Transaction Types with Control Settings

Navigation: Setup and Maintenance → Manage Transaction Types

Action: Assign the correct Completion Action that matches your source setting.

Oracle Fusion AR Transaction Approval Setup

Remember: The combination of transaction source and type determines whether an AR transaction requires approval before completion.

Step 3: Configure Approval Rules via Spreadsheet (User or Role-Based)

Oracle provides a spreadsheet-based tool to define custom approval rules.

Navigation: Setup and Maintenance → Manage User-Defined Rules for Receivables

Action: Download and configure the "Receivables Transaction Approval Rules" Excel template.

Sheets to Fill:

User-Based Control: Assign approvers per transaction amount, BU, etc.

Role-Based Control: Route approvals based on predefined roles and logic.

Once configured, upload the Excel file to activate your approval rules.

Step 4: Assign Required Security Roles and Privileges

Make sure the right users have the privileges to approve AR transactions.

Key Roles:

Approve Receivables Transaction – AR_APPROVE_RECEIVABLES_TRANSACTION_PRIV

Force Approve Receivables Transaction – AR_FORCE_APPROVE_RECEIVABLES_TRANSACTION_PRIV

Setup Batch Source – AR_SET_UP_RECEIVABLES_BATCH_SOURCE_PRIV

Assign these using the Security Console in Oracle Fusion.

Step 5: Use the AR Approval Process in the Billing Work Area

Once everything is configured:

Create an invoice or credit memo manually.
Submit the transaction – status changes to Pending Approval.
Approver Notification – Approver gets a notification or sees it in the worklist.

Take Action – Approver can:

Approve the transaction
Request Rework
Add Comments

Transactions cannot be posted, printed, or sent to customers until approved.

Benefits of AR Transaction Approvals in Oracle Fusion

Secure & Controlled AR Process

Ensure no unapproved transactions are processed or reported.

Clear Audit Trail

Maintain a detailed history of who approved what and when.

Faster Month-End Close

Automate validation to speed up period close without sacrificing accuracy.

Improved Transparency

Approvers get visibility into transaction amounts, sources, and context.

FAQs – AR Approval Workflow in Oracle Cloud ERP

Q1: Can I automate approval thresholds by amount or BU?

Yes. Use the approval rules spreadsheet to define dynamic conditions by BU, amount, transaction type, etc.

Q2: What happens if the transaction isn’t approved in time?

It remains in “Pending Approval” and is excluded from posting or customer communications.

Q3: Can this process be used for imported transactions?

No, it applies only to manually created invoices and credit memos.

The new Oracle Fusion AR Transaction Approval feature is a game-changer for finance teams aiming for compliance, automation, and control. By following the correct configuration steps above, you’ll streamline your AR process and strengthen internal governance.