Purchasing Management Process: Financial Approval

Unless your company has self-approval purchase process, purchase requests for products or services must be approved by responsible person prior to Market Assessment. Financial approval is required for various reasons, for example, to prevent people from spending more money than allowed by the budget.

Departments and divisions may have a variety of purchasing hierarchies and different responsible people depending on sum limit from hundred up to several thousand dollars or depending on the source of funds for the expenditure. Due to various levels of approval required it takes so long to make a Purchase Decision.

Each company establishes its own procedure for obtaining approval. It determines the terms of approval to ensure that no unnecessary delay is caused to requesting purchase. If a purchase request does not receive approval, the procedure prescribes further actions, so that the Ordering Process could take place after certain changes in requisition form.

Financial approval must be given before the purchasing commitment is made, and the purchasing system should be designed to ensure that this is done. In case the Requisition Form has not been approved, purchase management software should allow purchase manager to see why the requisition has been delayed or canceled.

VIP Task Manager Professional allows you to automate financial approval process:

Don't forget to allow the person who is responsible for the financial approval to see and edit requisition tasks. The responsible person will be able to receive the notification, that the task needs to be approved and he will be able to change the status of the task to "Approved". Once the task is "Approved" you receive the notification, so you can move to Market Assessment stage.

VIP Task Manager records all the changes in the tasks, so if there are any controversial points, you will be able to track task history and check when and by whom the purchasing task was approved.

Groupware applications

• VIP Task Manager is synchronous groupware for task management. This client/server software allows planning, scheduling, sharing, tracking and reporting tasks, appointments, projects, and any company activities. Authorized users can simultaneously access the common database through Local Network (LAN) to see, add, edit and delete their team or personal tasks, if they are granted appropriate permissions.