Simplified Purchase Order Approval Software

Automating the Purchase Order (PO) approval process offers several benefits that enhance business efficiency, accuracy, and control. Accounting software is not often enough to automate the procurement process for the entire procure-to-pay cycle. 

Special accounts payable software, like Tipalti, is specifically designed to handle the job from the moment a buyer thinks of a need to the payment being satisfied.

Here are some advantages of automating the PO approval process:

Reduced Errors and Improved Accuracy
The best purchase order software reduces the risk of human error associated with manual data entry, like incorrect pricing, quantities, or vendor details. 

These systems enforce data consistency by ensuring all required fields are filled in consistently and correctly, which helps manage data quality across the organisation.

Increased Speed and Efficiency
Automating the PO approval process eliminates the need for manual data entry and paperwork typically required for purchase order creation and order request. This reduces the time spent on administrative tasks, which can be especially beneficial for a small business.

Approval workflows instantly route POs to the appropriate approvers, significantly reducing approval times and avoiding delays caused by manual handoffs or waiting for physical signatures.

Approvers can review, approve, or reject POs in real-time, even remotely, speeding up the overall purchase order process.

Better Compliance and Control
Automated purchase order software ensures adherence to internal policies and external regulations by requiring every approval to follow pre-defined rules and workflows.

Every action taken within purchase order management software is logged, providing a clear and comprehensive audit trail useful for internal audits, compliance checks, and regulatory reporting.

Cost Savings
Reducing manual processes and data entry lowers administrative overhead costs associated with processing and managing purchase requests and purchase orders. Teams can get rid of the Excel spreadsheets and simply rely on automation.

Automation tools provide real-time visibility into purchasing activities, helping to identify cost-saving opportunities and business needs, negotiate better terms with suppliers, and control spend more effectively.

Faster approval times can also help companies take advantage of supplier early payment discounts, leading to direct incredible cost savings.

Enhanced Supplier Relationships
Fast and accurate processing of purchase orders leads to timelier payments and better payment terms, improving supplier satisfaction and fostering stronger long-term relationships.

PO software also provides transparency to suppliers about the status of their POs, reducing the need for back-and-forth communication and developing trust.

Additional Benefits

• Scalability and flexibility for large volumes of POs
• Data-driven insights on purchasing patterns, supplier performance, and approval bottlenecks
• Track key performance indicators (KPIs) related to the approval process
• Reduced employee workload freeing up more time for strategic tasks
• Better collaboration between departments by providing a centralised platform

When selecting a purchase order approval software solution, it’s important to consider features that align with specific needs and purchasing processes. 

Here are some key features to look for in a purchase order management software:

Customisable Workflow Automation
Look for features in the purchase order management system that give you the ability to create, modify, and automate multi-level approval workflows that match company policies and approval hierarchies.

It should also provide tools to set permissions based on user roles to ensure only authorised personnel create, approve, or modify POs. You should be able to automatically route POs to the correct approvers based on predefined rules, such as department, spend amount, or project code.

Integration Capabilities
This means seamless integration with your existing ERP, accounting, or financial management systems (such as SAP, Oracle, Xero, Precoro, or QuickBooks). This ensures data consistency and avoids duplicate data entry.

It should also integrate with vendor management platforms to streamline supplier communication and track performance. Look for integration with AP tools to automate invoice matching, payment processing, and reconciliation.

Compliance Management
Procurement software should offer comprehensive logs that track purchase activity taken on a PO, including creation, modification, approval, rejection, and comments, for audit and compliance purposes. Features should ensure adherence to internal policies, procurement regulations, and external standards (like GDPR or SOX).

Reporting and Analytics
Features should include the ability to generate customisable reports on PO approval times, bottlenecks, spend analysis, supplier performance, and other important metrics. 

Visual dashboards are also convenient. They provide real-time insights into purchasing activities, approval status, and performance metrics.

Additional Features

• User-friendly interface that’s easy to navigate
• Real-time notifications and alerts for approvers and requesters to increase communication and cash flow
• Configurable escalation rules that notify higher-level approvers
• Budget and spend management with spend analytics
• Features for inventory management and supplier management like catalogs and intuitive templates
• Multi-language and multi-currency support to accommodate diverse teams
• Mobile app for remote management

Yes, you can approve Tipalti purchase requisitions using mobile devices or messaging platforms like Slack, thanks to their integration capabilities and user-friendly design. 

Here’s a few ways in which it works:

Integration with Slack
Tipalti integrates with messaging platforms like Slack through APIs or third-party tools, enabling notifications and approvals directly within Slack. 

This integration also allows the user to receive real-time notifications about pending requisitions and approve or reject them without leaving the platform.

Custom Workflow Automations with Slack
A business can set up customised workflows and use Slack bots or commands to trigger specific actions, like sending reminders for pending approvals, notifying stakeholders of approved POs, or escalating approvals based on predefined criteria.