Configuring the Purchasing Approval Policy

Use approval policies to decide which purchasing transactions need approval, which includes specifying which approvals are required and their sequence.
Use purchasing approvals to implement your organization’s internal approval processes, which help to ensure that spending is authorized and correct. Approval processes generally address which transactions need approval and by whom.

Pre-requisites:

Subscription: – Need to subscribe to the Purchasing module. Please find the screenshot below of the module to configure the same

Scenario: – Let’s take an example where we will run a scenario of value approval; there are three employees A, B & C.

‘A’ is the creator of the purchase order, and B has the role of Purchase Team Lead, the first approver level for the value between 1000 – 2000 USD. In contrast, C has the role of Purchase Analyst, the Second approver for the value between 2000 and above USD.

Case Study No. 1

Step 1: – Go to Application >> Purchasing >> Setup >> More >> then click on + Icon besides Approval Policies

Step 2 : – The below window will flash on your screen; select the appropriate transaction definition from the list. In our case, we have chosen Purchase Order. From the Process section, select the proper rule type from the list. In our scenario, we have selected Value Approval and then click on the Edit.

Step 3 : – After clicking on the Edit button, the below screen will appear to select the level of approval, e.g., Level 1, Level 2, Level 3… etc. In our above scenario, we have two levels. Accordingly, we have selected Level 1 & Level 2, and the amount range for Level 1 is between 1000 – 2000 and for Level 2 between 2000 and above. After setting up the same, we will save the document. The minimum approver can be set as per the entity hierarchy.

Step 4 : – To assign the approval levels to the user Go to Application >> Company >> Admin >> Roles as shown below

Check the appropriate Roles from the list and click on the Subscriptions as per the image shown below. In our case, the roles are Purchase Team Lead and Purchase Analyst

Step 5 : – Below screen will appear; Scroll Go to Purchasing >> Click on Permissions in the below image

Select the Level 1 checkbox for the role Purchase Team Lead as shown in the below image.

And select the Level 2 checkbox for the role of Purchase Analyst, as shown in the image below.

Step 6 : – After creating the Purchase Order, as you can see, the purchase order is created for 1100 USD in the screenshot below.

So, as per our approval policy, it will be redirected to employee ‘B’ first level of approval as it exceeds the limit of 1000 USD. Also, the user cannot Convert the document to the succeeding document, as you can see in the below screenshot.

Step 7 : – Now, log in with B’s ID and Go to >> Purchasing >> All >> Approve Transactions, as shown in the image below.

The below page will appear on your screen; you will see the Purchase order, which we have created PO No. PO0225. The approver (B) will click the Approve button, and the order will be approved and submitted.

Step 8 : – However, the order is approved, and the user can convert the document to a succeeding document. Likewise, users can perform the approval mechanism and process the purchase flow in the software quickly.

Case Study No. 2

Step 1 : – let’s take another scenario; after creating the Purchase Order, you can see below that the purchase order is created for 2100 USD.

So, as per our approval policy, it will be redirected to Employee C’s second approval level as it exceeds the limit of 2000 USD. Also, the user cannot Convert the document to the succeeding document, as you can see in the below screenshot.

Step 2 : – Now, log in with C’s ID and Go to >> Purchasing >> All >> Approve Transactions as shown below.

The below page will appear on your screen; you will see the Purchase order which we have created PO No. PO0228. The approver (C) will click the Approve button, and the order will be approved and submitted.

Step 3 : – If the order is approved, the user can convert the document to a succeeding one. Likewise, users can perform the approval mechanism and process the purchase flow in the software quickly.

As per the above two scenarios, we have understood that setting up the Approval mechanism will help us to meet the approval hierarchy in the purchase transaction of the business.

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Greytrix Africa is a leading Sage business partner and ISV Partner offering Consulting, Implementation, and development services for Sage X3, Sage 300, Sage 300 People (HRMS), Sage CRM, and Sage Intacct, which covers East Africa, West Africa, SADC, and Middle East region. We offer professional services such as Implementation and Configuration, Business Process Analysis, Project Management, Integrations and Migrations, and Technical & Functional Support, along with enhancements within Sage X3, Sage 300 People (HRMS), Sage 300, Sage CRM, and Sage Intacct across various industry verticals like Process Manufacturing (Food & Beverages, Chemical), Discrete manufacturing (Automotive, Textile & Apparel), Non-Profit, Health-care Industry and Services Industry (Financial, Software & Engineering), Distribution (Transportation & Logistics), and Agriculture.

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Configuring the Purchasing Approval Policy