What is Purchase Order Approval in Odoo?

In the Configuration Settings of the Purchase application, there is an option called Purchase Order Approval under the Orders section. Enabling this option adds another field, Minimum Amount, to the settings. The Purchase Order Approval feature is triggered when the purchase amount exceeds the minimum threshold specified in this field. Once the Purchase Order Approval option is enabled, click the Save button to confirm and apply the changes.

Only the Administrator is permitted to validate an RFQ (Request for Quotation); users from the company are restricted from performing this action. This restriction can be managed by configuring the Access Rights of users in the General Settings of Odoo.

To set user access rights:

• Navigate to General Settings.
• Under the Users & Companies section, click on the Users sub-menu.
• In the Users menu, you can configure the specific access rights for each user, ensuring that only the Administrator has the required permissions to validate RFQs.
  

Here’s how the Purchase Order Approval process works using access rights and approval limits:

• In General Settings, navigate to Users & Companies > Users.
• Configure Marc Demo's access rights to "User" for the Purchase module.
  

• Log out from Mitchell Admin's profile and log in as Marc Demo.
  

• From Marc Demo's profile, go to the Purchase module and create a new Request for Quotation (RFQ).
• Ensure that the order amount is less than $5,000.

Result: Marc Demo can confirm the order and create a bill without requiring approval.

• From Marc Demo's profile, create another RFQ with an amount greater than $5,000.

Result: The system will trigger the approval process. The manager or administrator must review and approve the order before Marc Demo can confirm it or create a bill.

If the Purchase Order (PO) amount is $3,000, which is below the approval limit of $5,000, the RFQ can be confirmed without additional approval.

The user can then receive the products and create a bill for the order.

As the same user, create another purchase order where the total order amount exceeds $5,000.

In this purchase order, the purchase amount is $10,000. After entering the order details in the RFQ, click the Confirm button to confirm the purchase order.

When the Confirm button is clicked, the RFQ transitions to the 'To Approve' state. At this stage:

• The user cannot perform any further actions on the RFQ.
• The administrator must log in and approve the RFQ to enable further processing.
  

The purchasing administrator can easily identify the purchase orders in the 'To Approve' state, as shown in the screenshot below. The administrator should select the specific RFQ and open it for further processing.

Once the administrator clicks the 'Approve Order' button, the RFQ will move from the 'To Approve' state to the Purchase Order state. Once the RFQ is approved, either the administrator or the user can proceed with the remaining steps.

After receiving the products, the next step is to create a bill for the purchase order. To create the bill, click the Create Bill button in the purchase order.

Click the Confirm button to confirm the vendor bill.

Purchase Order Approvals in Odoo 18 streamline procurement processes, enhance control over spending, and ensure compliance with company policies. Using features like access rights and approval thresholds, businesses can reduce errors and improve accountability. Whether you're a small business or a large enterprise, this feature provides a robust solution to manage and approve purchase orders easily.