Multi-Tier Purchase Approval Authority Matrix Workflow

A structured Tallyfy template for routing purchase requests through appropriate approval tiers based on dollar amount thresholds. This workflow ensures proper financial controls by automatically escalating high-value purchases to senior management while enabling faster approvals for routine spending. **Estimated Time:** 30-60 minutes per request (depending on approval tiers required) **Difficulty Level:** Beginner **Team Size:** 2-4 approvers (varies by organization size) **Target Audience:** Finance teams, procurement departments, department managers, and budget owners **Key Benefits:** - Automated routing based on purchase amount thresholds - Clear audit trail for compliance and financial controls - Reduced approval bottlenecks with parallel authorization paths - Configurable dollar limits per approval tier (e.g., Manager up to $1,000, Director up to $10,000, VP up to $50,000, CFO above $50,000)

8 steps

Manufacturing Approval

Import this template free

Process steps

Supplier approval (Tier 1 - Manager Level)

1 days from previous step

approval

Initial approval for purchases under the Manager threshold (typically up to $1,000). The department manager reviews the request, verifies budget availability, and confirms the business need. This is the first gate for routine purchases.

Purchase authorization (Tier 2 - Director Level)

2 days from previous step

approval

Second-tier approval for purchases exceeding Manager authority (typically $1,000-$10,000). The Director reviews for strategic alignment, confirms vendor selection is appropriate, and ensures the purchase fits within departmental budget. Required for mid-value purchases.

Vendor acknowledgement and PO confirmation

2 days from previous step

task

Once approvals are complete, send the formal purchase order to the vendor. Verify the vendor has acknowledged receipt, confirmed delivery timeline, and agreed to payment terms. Document their acceptance in this Tallyfy template for audit purposes.

Define approval thresholds by tier

1 days from previous step

task

Set dollar limits for each approval level based on your organization size and risk tolerance. Typical thresholds: Manager up to $1,000, Director $1,000-$10,000, VP $10,000-$50,000, CFO above $50,000. Document these in your finance policy.

Assign approvers by role and backup coverage

1 days from previous step

task

Map job titles to approval authority for this Tallyfy template. Document who can approve what. Ensure backup approvers are designated when primary approvers are unavailable (vacation, illness). Avoid single points of failure by having at least 2 approvers per tier.

Set up approval workflows

1 day from previous step

task

Configure your purchasing system to route requests automatically. Make sure it escalates properly when thresholds are exceeded. Test the routing before going live.

Train the team

1 day from previous step

task

Make sure everyone knows the approval limits and process. Publish a simple reference guide. Nothing frustrates people more than rejected purchases because they didnt know the rules.

Review and update periodically

1 day from previous step

task

Check approval levels annually or when business changes. Are limits still appropriate? Are approvals happening fast enough? Adjust based on actual experience and audit feedback.