What is an approval workflow?
An approval workflow is a predefined sequence of approvals a request — such as a purchase requisition or PO — must pass through before it can proceed. Routing is usually driven by amount thresholds, roles, departments, or categories, and every step is logged for audit.
An approval workflow is the rulebook for *who has to say yes, in what order, before something can happen*. In procurement it governs requisitions, purchase orders, and contracts — routing each one to the right approvers based on amount, role, department, or category, and recording every decision along the way.
How an approval workflow works
- Trigger — a request is submitted (e.g. a ₹6 lakh requisition).
- Routing rules — the workflow picks a path by amount band, department, or category.
- Sequential steps — each step has eligible approvers and a clear order.
- Separation of duties — the requester can't approve their own request.
- Outcome — approved requests proceed; rejected ones return with a reason. Every action is logged.
Approval workflow example
A simple amount-based matrix might read: up to ₹50,000 needs a manager; ₹50,000–₹5 lakh adds the department head; above ₹5 lakh adds finance; above ₹25 lakh adds the CFO. A ₹6 lakh requisition therefore routes through manager → department head → finance before procurement can issue a PO.
Separation of duties is non-negotiable
A sound workflow always enforces that the requester is not the approver. This single rule is one of the strongest defences against fraud and against maverick spend.
Why approval workflows matter
- Financial control — spend is authorised by the right people before it is committed.
- Speed with control — clear routing avoids both bottlenecks and rubber-stamping.
- Audit trail — every approval is timestamped and attributable.
- Risk reduction — separation of duties and thresholds curb error and fraud.
Approval workflows are the control gate of the procure-to-pay cycle — what stands between a request and a commitment. Well designed, they make compliance fast enough that people don't try to go around it, protecting spend under management.
Frequently asked questions
What is an approval matrix?
An approval matrix is a table that maps request types and amount bands to the roles required to approve them. It is the routing logic that an approval workflow follows to decide who must sign off.
Why is separation of duties important in an approval workflow?
Because it stops one person from both requesting and approving the same spend. Separating those duties is a core internal control that reduces the risk of error, abuse, and fraud.
How does amount-based routing work?
The workflow checks the request amount against defined thresholds and adds approvers accordingly — small amounts may need only a manager, while larger amounts escalate to department heads, finance, and senior leadership.