PO Approval Rights should be with Finance or Purchase

[former_member601546]

Dear Team

I would like to have your expert comments / links that PO approval rights for Direct / Indirect material should be with Finance or Purchase department.

Here is my view & request to advise further - PO process is linked with buyer then it should be with Purchase; however Finance team can be added for approver during PIR as per release strategy. But ultimately it should be with Purchase team sine they knows better negotiation & terms / condition with supplier.

Kindly advise.

Also I understand its business call PO release strategy can be finance & purchase both but would like to have common views on same.

Thanks

Mayank

[Prasoon]

Hi,

As you mentioned, its business decision based on the manual of authority of the company!

If you expect Finance team in the approval for non-stock items, I hope its to ensure the correct cost objects. However, if you have Funds Management with proper budget control and proper authorization controls, the finance approval shall be replaced. You may check the option.

Regards,

[former_member462025]

Hi Mayank Bedi,

1. Keep multi level Release Process

2. Give authorisation with User ID in PO Workflow.

So that Both Finance & Purchasing team can View & approve the PO.

Thanks & Regards

Venkatesh Besetty

[TammyPowlas]

In our business, finance approves purchase requisitions (for coding, $, etc.) and then the purchasing manager approves the purchase order.

[former_member601546]

Thanks & Agreed this is standard practice where Finance approve the Purchase Indent where PO has to be approved by Purchase Manager