In this section, approval authority is established regarding Purchase Order approval for each user. The company has the option to declare whether one or two approvals are required in order for a PO to be approved. If the user chooses to include two approvals, then one of the approval users must have final approval authority. The company also has the option to declare whether they want approvals based on PO value or based on when there are date changes or note changes.
This section also establishes a default percentage that is allowed over and above the PO line item quantity. If material is received whose quantity exceeds the ordered amount by this percentage, the Receiving Department cannot receive the material until the order is modified by Purchasing. This is a default percentage applied to each order as it is placed, but it may be overridden at the time the order is created.