Standard Operating Procedures
administrative
Purchase Order Approval Workflow
Route POs through approval thresholds → vendor verify → budget check → issue. SOX-aligned segregation of duties.
Built for:
All
What's inside this template
Steps
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Submit PO request
Requestor fills PO request form: vendor, items, quantities, unit price, total, business need, GL account, project code if applicable.
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Department manager review
Manager validates business need, GL account, and budget availability. Approves or returns with notes. Cannot approve own request.
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Threshold-based finance approval
Standard tiers: <$1k → manager final, $1k–$10k → director, $10k–$100k → VP, >$100k → CFO/board. Each tier reviews + signs.
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Vendor verification
Procurement confirms vendor is in approved master file, has current W-9 and insurance certificate, and is not on debarment list.
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Issue PO
Procurement assigns PO number, sends to vendor with terms, copies requestor and AP. PO is the contract — vendor cannot ship/invoice without it.
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3-way match on receipt
When vendor delivers + invoices: match PO + receiver + invoice. Variances investigated before payment. AP cannot pay without 3-way match.
Common use cases
Standard PO issuance
SOX compliance
Budget control
Related templates
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