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Purchase Order Approvals: Why It’s Essential for Your Business

For a small business, making calls to establish the best buying rates and the right products with the right suppliers is a necessity to build good relationships.

However, this is time-consuming and means that the information is either in your head or on paper at all times.

With a growing business, it is vital to establish a consistent purchase order process as you allow more employees to take control of the company spend.

Deciding what the boundaries are around approvals, who can buy, what suppliers are established to give you the best deals on quality products.

Making sure that your products are replenished in time for your customers, so cash flow can be monitored closely.

What is a purchase order approval process?

Purchase approvals enable users to add a purchase request or purchase order for approval within their organization.

Limits can be assigned against each user, thus giving an organization control overspending, and knowing who/why products may be required for the business.

To carry out a smooth purchase order approval process – some systems need to be in place.

Cloud-based procurement software is a great option for companies as it gives you back control of the process without the added cost of in-house IT.

This way you establish the purchase process that everyone involved in the procurement process must follow.

This also makes it faster in the Procure to Pay Process, ensuring an audit trail exists from Order to Delivery to Invoice to Payment.

Automating workflow in the buying process ensures all communications are tracked, with setting limits for your employees based on their role, ensures that company policies are always adhered to.

A successful procurement system is a balance of the right processes, people assigned to the buying process and the right technology.

Benefits of a purchase process in place
  • Control over businesss spending. This process can assist small and medium-sized companies in better planning, cash flow management, and budgeting. You may also prevent unauthorised individuals from making purchases without approval by limiting who has access to the buying system.
  • Procure to Pay process is faster and increase cash flow. It also aids inventory management when you have a simple and fast purchase order system. With a purchase order approval process, you can ensure that all orders go through the same procedure and that they are easily accessible in one location.
  • Get quality products at the right price. To properly convey all the specifics of a transaction, purchase orders offer a record of exactly what you bought and at what price. Having this paperwork protects you from any ordering errors, and you can prevent any pricing adjustments in the future if the order has already been accepted.
Working with a pruchase order process on Enterpryze

From purchase request to invoice, here’s how the purchase approval works;

  1. Enable the Purchase approval limits, users and approvers in Settings > Module Settings
  2. The user will add a Purchase request or order. This is only created as a draft document at this point so no further actions can be carried out until it has been approved.
  3. Then the document will appear in the Approvals tab for the Approver. The approver will also receive an email to confirm this has been sent.
  4. Once the document is approved or rejected the user will be notified by email.
  5. If the document is approved the user can now follow through with emailing or printing the document for the Supplier.
  6. The Approved Order can now be copied to a Purchase Delivery or Purchase Invoice to complete the purchasing process.

With Enterpryze purchase approvals, you are always in control with cloud access.

So even if a manager is off-site; important notifications are always received to ensure the company spend is under control.

Simple access through the web or mobile application ensures that this is a hassle-free task that can be carried out anytime, anywhere!

Start your free trial today.

Set a purchase approval process in place and work hassle-free to improve your cash flow. 

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