Automating Approval Cycle Yields Benefits
an approval cycle in PowerShift is a
simple process that could save you time and money. It replaces the
time-consuming sign-off process in which a paper document is circulated
through several different departments. It ensures review cycles are
followed based on criteria you determine, enabling you to exercise more
control over the purchasing, sales, invoicing and manufacturing
The approval process for purchased
items might include signoffs from the buyer, purchasing manager, or
others (e.g., a safety board if the item is considered a hazardous
material). While purchase orders can be entered, they are not routed
(printed, faxed, emailed, etc.) until they are approved.
Bills of material can be set up to
require approval before work on manufacturing orders can proceed. Shop
paper will not be printed and material cannot be issued against
manufacturing orders for items with bills that have not been approved.
Sales orders may require approval by
customer service reps (to verify pricing, commissions, etc.),
accounting, or other departments. Sales order lines that are not
approved can be obligated but cannot be added to a shipment. Shipments
can go through an approval check before they can be confirmed, and can
be set up to require another approval prior to invoicing.
You can set up an approval cycle to be
triggered when an order exceeds a specified dollar amount (e.g. buyer is
allowed to approve up to $5000; the purchasing manager must approve
anything over that) — or a number of other criteria including:
Product class, ABC class or price
Item is a non-stock item
Item is hazardous material
Purchase cost is higher than standard
Vendor item is not QA approved
Vendor item is not compliant
Vendor type or individual vendor
Customer type or individual customer
When an order that requires approval
is entered, the order is put into the approvers’ queue (up to 5 users
can be set up for each criterion).
“Approving” the order requires a simple click of the mouse.
Approval cycles can be set up to
require consecutive approvals (i.e., first level of approval must be
completed before the next). Alternates can be specified so that if the
designated approver is unavailable, the alternate can perform the
signoff. A management override is also provided, allowing critical
orders to be expedited as needed. Anyone in the approval process can
deny an order, removing it from the approval cycle altogether.
Implementing approval cycles can
result in a smoother operating enterprise, mitigating potential risks,
with work continuing seamlessly and without interruption.