OSA - How does the system determine a part appraiser

I have copied a standard SAP template to create a performance feedback template. I have one employee in an org structure that is the chief of an org unit. I then have a subordinate org unit that reports to the higher org unit. I have an employee in this org unit. I have created two user ids and assigned each employee to one of the user ids. When I create the appraisal using phap_create_pa, I can create the objectives for the form with the chief. When I start the appraisal process, it kicks me out. When I go back in with phap_change_pa and am logged on as the employee (part appraiser), I cannot do anything since every column is greyed out, even though the status of the appraisal doc is in "in process, part appraisal". What am I missing? I guess I don't know why this part apparaiser is not working. Any help will be appreciated

Here are a few things I can think of:
1. In the template under the status flow tab ensure that 'person authorised' has the entry part appraiser
2. Check if the workflow event entered for the previous step is not a display event, but an approval event.
Hope it helps.
Also, can you please tell me which r/3 version you are using.

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