Approval

Approval Setup and Process Documentation

1. Overview

The Approval Add-On in the ERP system provides a web-based solution for managing transaction approvals, ensuring accuracy and compliance. This guide provides clear instructions for setting up and using the Approval Add-On to simplify approval processes.

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2. Supported Transaction Types

The Approval Add-On supports approvals for the following transaction types, with more to be added in the future:

Sales Module

• Sales Quotation
  
  

• Sales Order
  
  

• Delivery Note
  
  

• Sales Invoice
  
  

• Customer Payment
  
  

• Customer Credit Note
  
  

Purchase Module

• Expense
  
  

Manufacturing Module

• Work Order
  
  

• Work Order Issue
  
  

• Work Order Production
  
  

Inventory Module

• Inventory Adjustment
  
  

• Inventory Disposal
  
  

• Location Transfer
  
  

General Ledger (GL) Module

• Journal Entry
  
  

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3. Setting Up Approvals

Navigate to:
Setup > Users & Permissions > Approval Setup
(Note: Location may vary; check with your system administrator.)

3.1 Select Transaction Type

• Go to the Approval Setup page.
  
  

• Select the transaction type (e.g., Sales Order, Expense, Work Order).
  
  

3.2 Define Approval Levels

• Assign users to different approval levels based on their roles and authority.
  
  

Approval Levels:

• Top-Level Approver: Can finalize transactions.
  
  

• Second to Fifth Levels: Approve or reject before finalization.
  
  

Example Setup:

• Top-Level: General Manager
  
  

• Second Level: Department Head
  
  

• Third Level: Supervisor
  
  

3.3 Configure Approval Options

• Inactive Checkbox: Temporarily disable without deleting.
  
  

• Edit & Delete:
  
  

• Edit transactions.
  
  

• Delete if no longer needed.
  
  

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4. Approval Process for Transactions

4.1 Creating a Transaction

• Authorized users can initiate a transaction.
  
  

• Approval process starts based on configured levels.
  
  

4.2 Transaction Statuses

• Waiting: Awaiting action from an approver.
  
  

• Pending: Under review.
  
  

• Approved: Approved by an approver.
  
  

Example:
A user creates a transaction → status becomes Waiting for the next approver → approver sees it as Pending.

4.3 Approval Actions

Approvers can:

• Approve: Send to next level or finalize (if Top-Level).
  
  

• Reject: Return to creator with comments.
  
  

• Edit: Modify and approve directly (based on permissions).
  
  

4.4 Finalizing the Transaction

• Only the Top-Level Approver can finalize after all prior approvals.
  
  

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5. Notifications in the Approval Process

5.1 Overview

Notifications are sent automatically to keep users informed of status changes and required actions.

5.2 Notification Flow

5.2.1 Transaction Creation

• Notification to immediate upper-level user(s).
  
  

5.2.2 Review by Upper-Level Users

• If Rejected:
  
  

• Notification to the creator and previous approvers.
  
  

• Includes rejection reasons.
  
  

• If Approved:
  
  

• Notification sent to the next-level approvers.
  
  

5.2.3 Final Approval

• Notification sent to:
  
  

• Creator
  
  

• All prior approvers
  
  

• Relevant top-level users
  
  

5.3 Additional Notes

• Notifications via email or in-system alerts.
  
  

• Contact ERP admin for customization.
  
  

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6. Linked Transactions and Financial Controls

6.1 Overview

Linked transactions (e.g., Order → Delivery → Invoice → Payment) are approved in a controlled sequence with financial validations.

6.2 Approval Flow for Linked Transactions

• Each transaction is individually approved.
  
  

• Parent transaction stays Unapproved until children are approved.
  
  

6.3 Viewing Parent and Child Transactions

• View child transactions from parent screens (e.g., view Payment from Invoice).
  
  

6.4 Financial Controls

Direct Invoices

• Cannot create parent transactions until approval.
  
  

GL Entries

• Not generated until Top-Level approval.
  
  

6.5 Approval Dependency and Safety Checks

Key Controls:

• Block additional children until existing ones are approved.
  
  

• No auto-generation of parent transactions for standalones.
  
  

• GL entries only after final approval.
  
  

Example:
A Delivery is completed but not yet approved → Order remains Unapproved → prevents further Deliveries.

6.6 Benefits

• Consistency: Unified control across modules.
  
  

• Transparency: View transaction status history.
  
  

• Financial Accuracy: Prevents premature posting.
  
  

• Flexibility: Supports multiple order types.
  
  

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7. Approval Log

All actions are recorded in the Approval Tab, including:

• User Name & Level
  
  

• Date & Time
  
  

• Action Taken (e.g., Approved, Rejected)
  
  

• Comments (Approver’s feedback)
  
  

7.1 Approval Log Statuses

• Created: Submitted for first approval.
  
  

• Edit & Recreated: Resubmitted after rejection/edit.
  
  

• Edited From Draft: Draft revised before submission.
  
  

• Approved: Approved by assigned level.
  
  

• Edited: Creator modified post submission.
  
  

• Edited & Approved: Approver edited and approved.
  
  

• Rejected: Sent back for correction.