Restrict your Employee for Unauthorized buying by setting Approval in SAP Business One 10.0
Case: One of our clients complain about their procurement process can not map what lies in their inventory and because of which many times they left with procuring the same items which already lies in their stock and which sales are also not too frequent.
1. Their current ERP was not smart enough to give them the real insight of their business.
2. There was process and information gap between the various department. (eg. Sales, Inventory, and Purchase)
3. Unnecessary procurement of items which was already in the surplus amount in their stock.
4. Unnecessary extra cost center for procuring these surplus items i.e. useless extra expense.
5. Surplus item was acquiring space in their warehouse which can be used for other needed items. (Space Management)
Solution with SAP Business One:
1. In SAP Business One all modules are integrated thereby giving you real insight of your business.
2. SAP Business One gives you the flexibility to restrict any marketing document whether it is procuring, sales, inventory, and payment.
For Example, As in the case of our client, they want to restrict their employee for unauthorized buying.
Let’s See how we can map this with SAP Business One 10.0. We will restrict the whole PO So that no purchase order can be raised without being approved by the manager or owner.
Step 1: Define Approval Stage
Go to -> Administration -> Setup -> Approval Process -> Approval Stages
We want to restrict unauthorized buying therefore in the image above we set Stage Name as “Restrict PO”, Approval Required; 1, Since we only want our manager to approve it (We can set as many approvals as per our company requirement). No. of rejection required; 1. and then we will select the Authorizers, The one who will give approval, In our case, we set manager as an authorizer.
Step 2: Define Approval Template
Go to -> Administration -> Setup -> Approval Process -> Approval Templates
We define here the Name and Description of the template and then choose Originator (User Wo will raise PO in our case).
Choose from the Document Tab the Marketing Document for which we want to assign approval. In our Case, we have selected Purchase Order.
Under Stage Tab we can select the Stage which we have defined earlier to restrict PO.
Under Terms Tab we have set Launch Approval Process as Always. Since we want to set approval for each purchase order being raised. Then click on Add to add the Approval template.
Whenever the set user or the originator will raise PO for any item the system will set it as a pending document and the system send the message & alerts to approve the pending document to its authorizer. Note: The system will not allow adding the PO until it’s being approved by the authorizer.
Approval in SAP Business One will not only limit you to restrict unauthorized buying but you can restrict any marketing document and define the terms of approval: eg: if you want your sales employee not to give 5% or more discount without your approval then you can even manage it In SAP business one.
So by restricting the unauthorized buying of the items with the help of SAP Business one, our client can able to have a real happening of his business, its inventory status, item’s sale cycle, the cost of managing its inventory and also it helps them to optimize their warehouse locations which were earlier being held by unnecessary surplus items.
Hope this helps!
Post your questions in the community if you have any: https://answers.sap.com/tags/01200615320800000816