Forums  

Go Back   Forums > ISM Discussion Area > General Supply Management Discussions

Reply
 
Thread Tools Display Modes
  #1  
Old 10-14-2013, 04:32 PM
andyjmartin16
Guest
 
Posts: n/a
Default Purchase order approvals

We are installing a new purchase order creation and management software which is leading to streamlining our approval process. I would be interested in learning what other companies require for PO approval. How many approvals are required, by what level of employee, and are approvals based on item purchased, dollar amount, or all purchases follow the same approval rules and path?
Reply With Quote
  #2  
Old 11-06-2013, 07:21 PM
joannmu
Guest
 
Posts: n/a
Default

Our PO requests have signature authority levels (approval levels) based on the total dollar amount and must be approved by someone in the direct chain of command. Once the PO is created in our system (based on the PO request form) the PO then goes through another set of approvals in our Finance chain of command based on total dollar amount of the PO. We actually have two layers of approvals in place for all purchases over $100.00.
Reply With Quote
  #3  
Old 11-12-2013, 11:14 PM
TheMicah
Guest
 
Posts: n/a
Default

Without getting into too much detail about what I purchase for my company, I would say approvals usually depend on what's being ordered rather than dollar amount. There are some items that are a huge expense, but because they are regularly used equipment and supplies that the company depends on, I order them without additional approval. The company basically expects those charges to come through.

The things that I do get approval for are unusual items, annual maintenance & support renewals (Do we need them again? Do we need to make adjustments this time?), and items that involve a technical or process change from what we typically get or use.
Reply With Quote
  #4  
Old 12-11-2013, 07:49 PM
ahrani82
Guest
 
Posts: n/a
Default

Our company practices segregation of duties - three signatures are required for every payment of contract. One to approve the spending (budget), one to approve the contract, and one to approve payment. So to contract signing, minimum of two is required. For payment, three.

These are minimum number of signatures, and our company requires anyone between the purchasing/contracting officer and the signatory signs for recommendation.

I would like to add another point - less authority amount shall be given for change order amount. Our company has a separate authority for signing change orders which is approximately 10%. Mind you, this is an aggregate change order amount so it is likely that the highest level sees and approves change orders.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT. The time now is 11:19 AM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.