Purchase Order Approval Workflow

Purchase Order (PO) Workflow

1. Creation of PO

  • Status: When a Purchase Order (PO) is created, it will be in “Pending Approval” (PA) status.
  • Visibility: The following buttons will be visible to the Next Approver and Admin:
  • Approve
  • Reject
  • On Hold

2. On Hold Action

  • On Hold: When the “On Hold” button is clicked:
  • Status: The PO remains in “Pending Approval” (PA) status, but the “On Hold” flag is set to true.
  • Next Approver View: The Next Approver will now see a button labeled “On Hold Reset”.
  • On Hold Reset: When the “On Hold Reset” button is clicked:
  • Status: The PO’s status will revert back to “Pending Approval” (PA).

3. Approval Process

Scenario 1: Expense Approval Limit is Less Than Total Amount
  • Two-Level Approval: If the Expense Approval Limit is less than the total PO amount, two levels of approval will be required.
  • Approver Role: The approver will be an Expense Approver of the Next Approver
  • Actions: The approver will see the Approve and Reject buttons.
  • Email Notification: An email notification will be sent to the approver.
  • Approval:
  • When the Approve button is clicked, the PO is approved.
  • Rejection:
  • When the Reject button is clicked, the PO is rejected.
  • Rejection Reason: The rejection reason will be sent along with the rejection.
  • Resubmit for Approval button will be seen
Scenario 2: Expense Approval Limit is Greater Than Total Amount
  • Approval: If the Expense Approval Limit is greater than the total PO amount: The Next Approver mentioned in the Bill is the approver
  • Status: The PO will be approved.
  • Email Notification: An email notification will be sent to notify the relevant parties.

4. Rejection Process

  • When the Reject button is clicked:
  • Status: The PO is rejected.
  • Rejection Reason: The reason for rejection will be recorded and communicated.

Leave a comment

Your email address will not be published. Required fields are marked *