Create a Purchase Order Approval Process in Just 15 Minutes!

Shivasankari Bhuvaneswaran

November 7th, 2018 Procurement Process   purchase order  

Purchase Order Approval Process

Chaos and confusion are reigning themes in our world. We have a million overwhelming details to juggle on any given day, and all of our wooden towers seem on the verge of toppling over any minute. And who knows it better than the procurement team?

One surefire way to minimize all that chaos is to automate your purchase orders. Conventional PO processes are time-consuming, needlessly expensive, highly susceptible to human errors, and way too chaotic to be able to gather insights from later.

An automated purchase order approval workflow can ease all those issues effectively. All you need is to consider the purchase order approval process in its entirety and create a comprehensive workflow.

What Is a Purchase Order Approval Process?

A purchase order approval process is the flow of actions required from various stakeholders to bring a PO into effect or legitimize it. For any purchase order to be a legally binding contract, both the buyer and vendor must go through internal processes before it is mutually approved.

The Purchase Order Process Stakeholders

A legally valid PO passes through many departments within the buyer and vendor organizations.

Stakeholders within the buyer organization include:

  • The business unit that raises the request
  • The procurement or purchasing team
  • The finance team

Stakeholders within the seller’s organization include:

  • The Controller who issues the final approval
  • The finance team
  • The inventory team

What Does a Purchase Order Approval Process Look Like?

Purchase order approvals vary in specifics from one organization to another. However, the basic flow remains similar. Here’s a brief idea of how a typical purchase order approval process may function.

Raising the request

The business unit that has the requirement raises the request to the purchasing or procurement team in the organization.

Vetting the request

The procurement team then assesses the request thoroughly. At this stage, budgets and document checks are also carried out.

Approval or rejection

Based on the rules of purchase order approval, the procurement team may reject or approve the request. In case the request is not approved for lack of specific information, the same is sent back to the team that raised the request.

Preparation of the PO

Once the procurement team approves the request, the PO is prepared based on the nature of the order. While preparing the PO, details such as the buyer’s information, vendor’s information, PO number, order details, and payment information are included.

The buyer’s organization then sends the completed PO to the seller.

Assessing the PO

A purchase order is deemed legally valid only after the vendor approves it.
The vendor typically examines the offer in one of two ways.

A. Existing customers:

In the case of repeat customers, the seller checks if previous invoices have been paid and no outstanding payments are due.

B. New customers:

When first-time business is being considered, the supplier checks to verify buyer information as well as their ability to make payments on time.

Once the initial checks are carried out, purchase orders are sent to the approving authority to formally accept on behalf of the vendor. The approved PO is thereafter considered to be a legally binding contract between the purchaser and supplier.

Automate Your Purchase Order Approval Process

Try KiSSFLOW, trusted by 10,000 companies.

Building a Powerful Purchase Order Approval Process in Just 15 Minutes

Familiarity with the purchase order approval process, however, doesn’t automatically ensure efficiency. A carefully designed automated workflow is required to optimize the entire process.

Here’s how you can create one in 15 minutes.

Install the app best suited to your organization

The right application should ideally be custom-built to your requirements, easy to use, and offer features that allow changes to be made quickly. With KiSSFLOW, you can easily customize workflows, glean important insights swiftly, and be assured of data security.

Install Purchase Order App

Tailor to your specific needs

Use delightfully simple drag-and-drop forms to customize your application. Utilize features such as formulas, conditions, exceptions and more.

Customize Purchase Order App

Implement the purchase order workflow

Define your workflow. Set permissions and approval tasks. Include all necessary stakeholders.

Purchase Order Workflow

Monitor progress

View PO status in a glance and identify bottlenecks with ease. Make real-time alterations in case of inefficiency.

Purchase Order Status

Improve purchase order approval process

Use analytics, reports, and visual insights to help make the process faster and more accurate

Improve Purchase Order Approval Process

Lightning Fast Purchase Order Approvals With KiSSFLOW

Speed and accuracy are critical capabilities for businesses that wish to stay ahead of the competition. KiSSFLOW protects organizations from inefficiencies of time, money, and effort with solutions that keep the future in mind.

KiSSFLOW facilitates faster approvals with real-time notifications and effortless tracking with comprehensive dashboards. Cloud-based online solutions like KiSSFLOW eliminate possibilities of human error and enable transparent processes. No more chaos, miscommunication, or inefficiencies.

Looking for the best way to perfect your purchase order approval process? Sign up for a free KiSSFLOW trial today to experience simplified yet efficient workflows.

Make Your PO Approvals a Breeze

On-the-go Approvals. Real-time Monitoring.