¶ Purpose
Once the purchase order has been created, it must be approved by the head of the purchase department and, in some situations, the head of the finance department.
¶ Prerequisites
The following transactions must be completed before the PO Approval transaction.
- The user access rights transaction must be completed.
- The Supplier Master needs to be defined.
- The Subcontractor Master needs to be defined.
- The Employee master needs to be updated if required.
- The PO Approval Setting needs to be checked.
- At least one of the following transactions must be completed.
¶ Purchase Order Approval
The Purchase Order Approval screen allows the head of the purchase department (Signatory 2) to approve the Purchase Order (PO) for purchasing the items.
Navigation: Main - Menu → Transactions → Purchase → Purchase Entries → Purchase → Show List → Approval & Schedules → Purchase Order Approval
- The user can search for a particular order based on the PO Type, Supplier, Originated By and Purchase Type.
- The user must select the appropriate PO Type. There are five types of purchase orders, as listed below.
- General Purchase Order
- Rate Contract (Open PO)
- Stock Transfer Request
- Subcontract (Open SO)
- General Service Order
- The user must select the appropriate Supplier from the dropdown list.
- The Purchase Order Approval screen displays details such as PO No., PO Date, Supplier, Material, Alloy, Qty, UOM, CUR Amt., CUR, Price, PO Value, Grand Total, Attachments, PO Created By and HSN Number.
- The user can click the PO No. link to view the details in the Excel format.
- The user can click the View Attachments link to view the uploaded attachments of the purchase order.
- The user must select the appropriate checkbox of Approve or Reject, to approve or reject the purchase order.
- The user can select the Select All checkbox, to select all pending orders.
- Click Approve.
¶ Functional Use Cases
| SL No. | Use Case | Business Scenario | Functional Outcome in ERP |
|---|---|---|---|
| 1 | Search Purchase Order | The approver needs to locate the purchase order by PO Type, Supplier, Originated By, or Purchase Type. | The system filters and displays relevant purchase orders awaiting approval. |
| 2 | View PO Details | The approver wants to check the purchase order information before approval. | The system displays details such as PO No., Date, Supplier, Material, Quantity, UOM, Price, PO Value, and Attachments. |
| 3 | View Attachments | The approver needs to validate the supporting documents attached to the purchase order. | The system opens and displays uploaded attachments linked with the PO. |
| 4 | Approve Purchase Order | The approver validates and approves the PO for procurement. | The system updates the PO status to Approved and allows further processing, like GRN. |
| 5 | Reject Purchase Order | The approver finds discrepancies and decides not to approve the PO. | The system updates the PO status to Rejected with recorded remarks. |
| 6 | Bulk Approval | The approver wants to approve multiple pending purchase orders at once. | The system allows the selection of multiple POs and processes them in bulk approval. |
¶ Use Case Scenario
- Click here for a detailed use case scenario for the transaction.
¶ Transaction Checklist
| Steps | Checklist Item | Details / Purpose |
|---|---|---|
| 1 | Verify user access rights | Ensure the approver has access rights to the Purchase Order Approval screen. |
| 2 | Confirm Supplier or Subcontractor Master | Verify that the supplier or subcontractor is defined in the system. |
| 3 | Validate Employee Master | Ensure the approving authority (Signatory) is updated in the Employee Master. |
| 4 | Check PO Approval Setting | Confirm that the PO approval process flow (single-stage or two-stage) is configured correctly. |
| 5 | Ensure prerequisite transactions | Confirm that at least one PO transaction exists (General PO, Rate Contract, Stock Transfer Request, Subcontract Open SO, or General Service Order). |
| 6 | Validate PO details | Cross-check that the PO includes correct Material, Quantity, Price, UOM, and Supplier information. |
| 7 | Review attachments | Ensure necessary supporting documents (quotations, contracts, specifications) are uploaded. |
| 8 | Check budget allocation (if applicable) | Confirm that the PO value is within the allocated budget or approval limit. |
| 9 | Confirm pending status | Verify that the PO is in Pending Approval status before proceeding. |
| 10 | Prepare approval remarks | Keep remarks ready in case of approval with conditions or rejection. |