Purchase Approval Limits

This screen enables you to define purchasing approval limits by user.

This feature is designed to better manage a company’s purchasing liabilities. It does this at three levels – on a per order basis, on a per Supplier basis, and on a total Purchase orders basis.

A company can specify one or more of these levels (Approval Scope) for one or more users.

If a user is limited on a per order basis (scope = “Current Order”), any Purchase Orders he create or modify at any time, must be within his Current Order limit. If it is not, he will need to get it approved by another user with a higher limit.

On a per Supplier basis (scope = “Current Supplier”), we look at the total value of the Purchase Orders for that supplier (regardless of who raised the orders) over a specified time horizon. If that value exceeds what is set for the user, then approval is required before the user can create or modify the Purchase Order. This ensures that the company is made aware of any potential excessive spending with a particular supplier.

Using the Approval Scope of “All Suppliers”, the company can manage any over-spending on a total purchases basis over a specified period.

Entry and Display fields

User Name: From the dropdown list select the User to which this Approval Limit record is to apply.

Approval Limit: Enter the limit up to which this User can create/maintain a Purchase Order

Approval Scope: From the drop-down list select the coverage that this record covers.  The options are described above and are Current Order, Current Supplier, or All Suppliers

Required Date Horizon in days: The approval limit is calculated based on all outstanding Purchase Orders (status = Open or Receipts) whose Required Date falls within this number of days (looking back from current date).

Use Remaining Value or Order Value: From the drop-down list select the value calculation that should be applied to the valuation.  The options are:

Remaining Value: based on Remaining Quantity * Buy Price, or

Order Value: based on Order Quantity * Buy Price

Buttons

Close: This will close the Purchase Approval Limits screen.  If you have any unsaved data then you will be asked if you wish to save it before the screen is closed.

Add: This will send the cursor to a new line for entry of a new Approval Limit record.

Save: This will save the current data without exiting the screen

Cancel: Any changes made since the line was actioned or the last time the ‘Save’ Button was pressed will be lost.

Delete: This removes the current highlighted Approval Limit record