Pre-approve spending
before it happens with Smooth Purchase Approval Management Software

Purchase Approvals is ControlHub's proactive approach to financial management.

It comes into play when an employee or a department within the company makes a purchase request, which could be for anything from office supplies to new equipment or services.

The purchase request is then reviewed by a designated individual or team, such as a manager or the procurement department. They assess whether the request falls within company purchasing policies and either approve or deny it. If necessary, they might request additional information to make their decision.

Sure, let me walk you through a typical Purchase Approval process and how it relates to the whole purchasing process. While the specifics can vary depending on the organization, the general steps are as follows:

1. Purchase Request: The process begins when an employee identifies a need for a product or service. They would then create a purchase request detailing what they need, the quantity, estimated cost, and any other relevant details.

2. Review Request: The purchase request is then sent to a designated approver, often a manager or supervisor. The approver reviews the details of the request, checking it against pre-set company purchasing policies. For example, they might check if the requested item is within budget, if it's from an approved supplier, or if it's necessary for business operations.

3. Approval or Denial: Based on their review, the approver can take one of three actions: approve the request, deny it, or ask for more information. If the request is approved, it can move to the next step. If denied, feedback is usually given so the requester understands why the purchase can't be made. If more information is needed, the request is sent back to the requester for clarification.

4. Purchase and Delivery: Once a purchase request is approved, a purchase order is sometimes created and sent to the supplier. The supplier then fulfills the order by delivering the goods or services.

5. Invoice and Payment: After delivery, the supplier sends an invoice detailing the items delivered and the total cost. This invoice is then matched with the purchase order and delivery documents to ensure accuracy before payment is made.

6. Reconciliation and Record-keeping: All documents related to the transaction (the initial request, the approval, the purchase order, the invoice, and the payment records) are stored for future reference and audit purposes. What we call “Audit ready”. This creates a clear audit trail and helps the organization keep track of its spending.

This entire process ensures that the organization's resources are used effectively and responsibly. By requiring approval before purchasing, the company can avoid unnecessary expenses and ensure that all spending aligns with its strategic goals. 

With ControlHub, these steps are simplified, and some of them are automated. Streamlining the purchasing process and making proactive spend management something achievable.

Yes, Purchase Approvals can indeed facilitate team collaboration. They promote transparency and coordination as various team members, from requesters to approvers to the finance team; everyone participates in the process.

With ControlHub, you ensure everyone is aligned on company spending and can collaborate efficiently on purchase decisions. It enhances decision-making through features like quote requests for price comparisons and personalized approval workflows by Department, Project, Vendor, Location, etc.

Moreover, ControlHub can be tailored to match your organization's specific procurement processes and policies, making it an integral part of your overall management strategy.

With Purchase Approvals, you gain clear insight into your budget allocation. Visualize your already spent budget before approving additional team requests and access automatically generated expense charts for a transparent view of your spending.

Audit trails are key to tracking your purchase approvals and related data end-to-end. ControlHub's "Audit Ready" feature records every step of the procurement process, documenting all associated transactions and people involved. This offers transparency, accountability, and facilitates regulatory compliance.

Purchase Approvals is more than a feature—it's a significant upgrade for your purchasing system, incorporating spend visibility, easy document management, and customizable approval workflows.

Purchase Approvals play a vital role in decision-making as they help the approvers make informed decisions. By checking the purchase request against the company's purchasing policies, budget, and needs, the approvers can decide whether the purchase aligns with the company's strategic goals. ControlHub's feature of requesting quotes for price comparisons also aids in effective decision-making.

The Accounts Payable team plays a crucial role in the Purchase Approval process. After a purchase order has been approved and delivered, the supplier sends an invoice to the Accounts Payable team. They ensure that the invoice matches the original purchase order and delivery documents before processing payment. ControlHub can streamline this process, making it efficient and error-free.

A Purchase Order (PO) is a document generated after a purchase request is approved. It officially authorizes the purchase from the supplier and includes the PO number, a unique identifier for tracking the order. ControlHub automatically creates and manages purchase orders, saving time and reducing errors.

A Request for Proposal (RFP) can be a part of the Purchase Approval process if the purchase involves a significant investment or a complex product or service. The RFP invites suppliers to submit a proposal detailing how they would meet the requirements and at what cost. This helps in comparing different suppliers and making an informed decision.

A purchase requisition is the initial step in the Purchase Approval process. It is a request made by an employee or department for a product or service they need. The requisition then undergoes the approval process where it's reviewed and either approved, denied, or sent back for more information.

The finance department plays a significant role in the Purchase Approval process. They help set the company's purchasing policies, review and approve significant purchase requests, and handle the payment process. They also work closely with the Accounts Payable team to ensure accurate and timely payments.

ControlHub streamlines the procurement process by automating and simplifying many steps. It allows for easy submission of purchase requests, efficient review and approval process, automatic creation of Purchase Orders, and seamless management of the Accounts Payable process. Its "Audit Ready" feature also ensures that all transaction documents are easily accessible, aiding in compliance and audit readiness.