Procurement procuration levels

If a purchaser does not have sufficient authorization (mandate) to send an order directly to the supplier, the order must be reviewed according to the authorization matrix (procuration scheme). The authorization of an order is based on:

- the supplier group to which the supplier belongs.

- the authorization level of the ordering and reviewing employee(s).

These two aspects are linked to the purchasing role(s) of employees. By setting this up, you can define up to what order amounts an employee is allowed to place an order, and by whom the order must be reviewed if the employee’s own authorization limit is insufficient.

This article explains how to create authorization levels, how to easily view them in the roles overview, and how an order moves through the authorization process.

Adding Authorization Levels

To add a new authorization level, go to Application Management / Procurement / Procuration.

By clicking the 'Add' button at the top of the overview, you can add a new level. By choosing 'All employees approve,' you ensure that all employees within the same organizational unit with this authorization level need to approve the order before the order request is submitted to the supplier.

Before you can use an authorization level, it must be defined in an employee’s role.

You can do this by editing the current role or job profile and entering the correct authorization amount.

Viewing Authorization Levels in the Roles Overview

In the roles overview, you can view which authorization level is assigned to each employee.

To generate this overview, go to Application Management → Organization → Roles.

Then, select the Purchasing module on the left-hand side. You can also apply additional filters, for example to display only a specific organizational unit. Next, click the blue Select button.

In the overview that appears, the authorization amounts are displayed on the right-hand side for each role.

This overview can be exported in PDF, CSV, or Excel format.

The Authorization Flow of an Order

When an order is placed, the review process begins. This process starts with the organizational unit to which the order is assigned.

The system checks which employees within that unit are authorized to review orders (to approve orders up to a certain amount) within the supplier group to which the supplier of the order belongs.

If the purchaser has an authorization level of €10.00 for that supplier group, the system will escalate the order to the next higher authorization level (and continue to do so) until it reaches an employee with a sufficient authorization limit to approve the order.

If no employee within that organizational unit has a sufficient authorization level, the system will continue searching upward through higher organizational units until it finds an employee with the necessary authorization level to review the order.

When submitting an order, the following error message may appear. This occurs when no role exists with a sufficiently high authorization level to review the order.

In the corresponding error message article, you will find further instructions on what to check.

Ultimately, a new role must be added or the authorization level of an existing role must be increased so that the order can be successfully submitted and reviewed.

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