Introduction
In any business, controlling expenses and ensuring policy compliance is crucial, especially when it comes to procurement. Odoo 18 Enterprise offers a structured Purchase Order (PO) Approval process to help companies enforce authorization workflows before confirming high-value purchases. This feature ensures that any order exceeding a set threshold must be reviewed and approved by designated personnel, usually a manager or administrator. Let’s explore how to configure and manage Purchase Order Approvals in Odoo 18 Enterprise.
Purpose
The primary goal of the PO approval process in Odoo 18 is to:
Prevent unauthorized or over-budget purchases
Enforce internal approval policies
Allow for managerial oversight of significant expenses
Improve financial control and accountability within the purchasing process
Step-by-Step Process
Step 1: Enable Purchase Order Approval Feature
Navigate to the Purchase module.
Go to Configuration > Settings.
Under the Orders section, enable the Purchase Order Approval option.
Once enabled, set the Minimum Amount—e.g., $5000—above which an order requires managerial approval.
Click Save to apply the settings.
Step 2: Define User Access Rights
6. Go to Settings > Users & Companies > Users.
7. Select a user (e.g., Alex).
8. Under Access Rights, set their Purchase access level to User (not Administrator).
9. Save the changes.
🔹 A user with "User" access cannot validate orders exceeding the approval limit.
Step 3: Create a Purchase Order Below the Approval Limit
10. Log in as the user (Alex).
11. Go to the Purchase module and create a Request for Quotation (RFQ).
12. Ensure the order amount is less than $5000.
13. Click Confirm Order – the PO is directly confirmed without requiring any approval.
14. Proeed to receive products and create a vendor bill using the Receive Products and Create Bill options.
Step 4: Create a Purchase Order Above the Approval Limit
15. While still logged in as Alex, create another RFQ.
16. Set the order total to an amount greater than $5000 (e.g., $10,000).
17. Click Confirm Order – the RFQ status changes to To Approve.
18. At this point, no further actions (like receiving products or billing) can be taken.
Step 5: Manager/Administrator Approves the Order
19. Log in as an Administrator. (John)
20. In the Purchase module, identify RFQs in the To Approve state.
21. Open the specific RFQ and click the Approve Order button.
22. The RFQ status updates to Purchase Order.
Step 6: Complete the Purchase Order
23. Log back in as Alex.
24. Open the approved Purchase Order.
25. Click Receive Products and then Validate to confirm receipt.
26. Click Create Bill to generate the vendor bill.
27. Confirm the bill to finalize the process.
Conclusion
Odoo 18 Enterprise provides a robust Purchase Order Approval mechanism that aligns with an organization’s procurement policy and financial goals. By enabling PO approvals based on a threshold amount and defining user roles, businesses can ensure that only authorized purchases are processed. This not only helps in budget management but also improves the overall transparency and control within the procurement workflow.
Whether you're a small company or a large enterprise, implementing approval workflows in Odoo 18 can significantly enhance your purchasing efficiency and internal control.