Managing Purchase Order Approvals in Odoo18

In Odoo, Purchase Order approval refers to the process of reviewing and confirming a purchase order before sending it to a vendor or supplier. Typically, this is done to ensure that the order follows the company’s purchasing policy and is accurate and authorised. Purchase order approval ensures that purchases are in line with the company’s budget and financial goals. Managers can examine and approve or reject orders that exceed budget or fall outside of the anticipated expenditure. in this blog we gonna explore how to manage purchase order approvals in Odoo18

Enabling Purchase Order Approval in Odoo 18

The Purchase application’s Configuration Settings provide the option Purchase Order Approval in the Orders section. When the boolean for this field is activated, another field appears: Minimum amount. When the purchase amount reaches the minimum amount specified here, the Purchase Order Approval feature becomes accessible for use. After enabling Purchase Order Approval, click the Save button to apply the changes made in the Settings.

The RFQ can only be validated by the Administrator; a company user cannot validate the RFQ. Odoo18’s General Settings allows you to set a user’s access restrictions. A Users sub-menu can be found in General Settings, under Users & Companies.

Setting User Access Permissions in Odoo18

When you select the Users sub-menu, all of the internal users in that company will be listed. In Odoo18, the purchase module has two alternative access rights: User and Administrator. Select one of the users and set the Access permissions for the Odoo18 Purchase module to User, as seen in the screenshot below, then save.

Now that the access rights for the user Faaz have been set, log out of Admin’s profile and log in as Faaz. Thus, the user attempts to establish a PO that exceeds the limit and requires administrator approval.

Create a new purchase order from Faaz’s profile. If Faaz creates an order for less than 5,000AED the user can confirm the order and create a bill for it. However, if the order exceeds 5,000AED the manager must approve the transaction before creating a bill for it.

Creating an RFQ Within the Approval Limit

Navigate to the purchase module and generate a new RFQ using Faaz’s profile. Also, ensure that the order does not exceed 5,000AED.

The total amount in this purchase order is 3,000AED which is less than the approval limit. So, click the confirm button to approve the RFQ.

Receiving Products and Generating the Vendor Bill

Then you can receive the product and create a bill for the order. To obtain the ordered products, click the obtain product button and authenticate the receipt. Move to the RFQ, and there will be a produce Bill button where the user can produce the bill for the purchase order.

Create another purchase order as the same user, this time with a total of more than 5,000AED

This purchase order has a purchase amount of 15,750.AED After adding the order details to the RFQ, click the confirm button to finalise the buy order.

Approval Process for RFQs Exceeding the Limit in Odoo18

When the confirm button is hit, the RFQ is moved to the To Approve status. The user is then unable to take any further action on the RFQ. Once the RFQ reaches the To Approve stage, the administrator should approve it, and only the user can take further action on it. So, log in as an administrator and approve it.

When the administrator accesses the buy application, he may quickly identify purchase orders in the To Approve state, as illustrated in the screenshot above. Select that RFQ and open it.

How to Approve Purchase Order as an Administrator

Then there will be an Approve Order button. The administrator can click the Approve Order button, which will shift the RFQ from the To Approve to the Purchase Order state. The RFQ’s remaining procedures can be completed by either the Administrator or the user. Log in as Faaz, and they will see the current status of the RFQ.

By pressing the receive button, the user can obtain the product specified in the purchase order.  After you’ve clicked the receive button, click the validate button for confirmation of the receipt.

How to Generate a Bill for the Purchase Order

The next step is to generate a bill for the purchase order.  To produce the bill, select the produce bill button from the purchase order.

The vendor bill will then appear, which will include product specifics, the total amount of the purchase order, and other information.

Confirming the Vendor Bill

To accept the vendor bill, click the confirm button. In this purchase order, the user makes an RFQ, which is then approved by the administrator, and this RFQ becomes a purchase order, after which the user creates the bill for the same purchase order.

Effectively handling purchase order approvals in Odoo18 results in a more simplified procurement process, which reduces errors, improves cost management, and increases overall operational efficiency. Odoo18’s customisable workflows, multi-level approval systems, and real-time tracking enable enterprises to optimise purchase decisions while retaining openness and responsibility.

This is all about how to manage purchase order approvals in Odoo18, By implementing approval workflows, businesses can maintain financial discipline, reduce unauthorized spending, and enhance transparency. Odoo18’s flexible configuration options allow companies to set approval limits, assign user roles, and track purchase requests in real-time.

With a well-structured approval system in place, businesses can avoid unnecessary delays, prevent errors, and optimize their purchasing decisions. Odoo 18 provides the tools needed to streamline procurement, improve cost efficiency, and enhance overall operational effectiveness.

By implementing the advanced features of Odoo18, companies can build a powerful procurement system that aligns with financial policies and ensures smooth collaboration between users and managers. Implementing these best practices will not only enhance workflow efficiency but also support better financial management and compliance with company policies. still having doubts on how to manage purchase order approvals in Odoo18? contact bassam infotech for more details