Table of Contents

Purchase Order Approval Process

Also known as: PO Approvals, Approval Chain, Approval Workflow

The Purchase Order Approval Process ensures that certain POs are reviewed and approved before being sent to suppliers. This is most commonly used for Unapproved POs, but can also apply when company policy requires oversight based on spend or item type.

How Approvals Work in POs

  1. A purchase order is created.
    • If the supplier has an Approval Process workflow, the PO cannot be marked Approved until the full workflow is complete.
    • This is different from creating a draft PO by unchecking the Approved box. Draft POs are simply incomplete orders and are not tied to the approval workflow.
  2. If the workflow applies, the PO is marked Pending Approval.
  3. Approvers are notified by email and inside FTS.
  4. Each approver reviews the PO:
    • Approve (moves to the next approver or to supplier if final).
    • Reject (sends the PO back to the creator).
    • Add notes or comments to explain decisions.
  5. Once the final approver approves, the PO is considered Approved and ready to send to the supplier.

Approval Chains

  • You can configure multiple approvers in a chain.
  • Each approver must approve in order before the PO is sent.
  • Approvers can have spending limits, so higher-value POs require additional sign-off.
  • If an approver rejects a PO, it stops the approval process until corrected.

Spending Limits

  • Each approver can have a dollar threshold.
  • If the PO amount is below the threshold, that approver can finalize it.
  • If the PO amount is above the threshold, it moves on to the next approver in the chain.

Notifications

  • Approvers are automatically notified when a PO needs their approval.
  • Creators are notified once the PO is approved, rejected, or expired.
  • Approval requests can be resent if an approver does not respond.

FAQ

What happens if a PO is not approved in time?

It expires and no order is sent to the supplier.

Can I have multiple approvers for the same PO?

Yes. Approval chains allow multiple approvers in sequence.

Can I set spending limits?

Yes. Approvers can have dollar thresholds. If a PO exceeds their limit, it moves to the next approver.

Can I resend an approval request?

Yes. Approval requests can be resent if an approver does not act.

Can approvers add notes?

Yes. Approvers can include notes or comments when approving or rejecting a PO.

What’s the difference between an unapproved PO and a draft PO?

  • Unapproved PO: A system-created PO type that requires approval before sending. If not approved in time, it expires.
  • Draft PO (unchecking Approved box): A PO that has not yet been finalized by the creator. It is not part of the approval workflow and simply sits in draft until marked Approved.

Can you setup a PO Approval process based on a Station/Cabinet level not a Supplier?

No. The PO Approval is setup on a the supplier level.

Edit this page