Transaction Approval allows you to verify and approve the transactions that your employees create in Zoho Inventory. So, only the transactions that are approved reflect in your accounts and reports.
Introducing an approval workflow helps to avoid situations where a wrong item or an incorrect quantity may be recorded while making a purchase. Let’s look at a scenario to understand this better.
Scenario: Jason is a business owner and has multiple employees working for him. A newly appointed staff in the purchase department accidentally sends out a purchase order with a wrong quantity. Jason figures this out and wonders how he could have prevented this in the first place. Immediately, he sets up an approval workflow to ensure that all purchase orders his employees send has their managers’ approval.
Let’s see how you can set up the approval workflow in your organization to prevent any possible mishap.
IN THIS PAGE…
Enable Transaction Approval
The first step in setting up the approval workflow is to enable the feature in your organization. In Zoho Inventory, you can enable approval workflow for sales and purchase modules separately.
To enable the approval workflow for your transactions:
- Click the icon from the top right corner.
- Go to Preferences.
- Head to the Approvals section.
- Click the Sales/Purchase Approval tab at the top of the page.
- Click the Enable Sales/Purchase Approval button.
Enabling Sales Approval
Enabling Purchase Approval
Now, you can configure the preferences for your transactions.
Note: If you have an integrated Zoho Books account, then you will have to enable this feature through your Zoho Books organization.
The users with Admin role have default access to approve transactions. However, they can extend this privilege to other users and add them as approvers. You can add users to your Zoho Inventory organization and enable approval permissions.
To enable approval permission for a user:
Step - 1 : Create a role
- Click the Gear icon from the top right corner and select Users & Roles.
- Navigate to the Roles tab.
- Click the New Role option and create a role. Alternatively, you can also duplicate an existing role by clicking the clone button.
- Enter a new name for the role created and select the modules you wish to give the user access to.
- Navigate to the Purchases/Sales section.
- Check the box in the Approve column to provide approval permissions for sales and purchase transactions.
- You can also allow approvers to Edit and Delete Approved Transactions by clicking the More Permissions option.
- Click Save.
Step - 2 : Invite new users
Once you have enabled permissions, you can invite new users to the organization as approvers. To invite new users:
- Navigate to the Users tab and click Invite User.
- Enter the details in the pop-up and select a Role you would like to assign to the user and click Send. Immediately, an email will be sent to the prospective user.
- The user needs to click the Join Account link sent to them via email to start using Zoho Inventory.
Pro Tip: You can also turn existing users into approvers. To do so, go to the Users tab > click the Gear icon next to the user > click Edit and then assign a role with approval permission.
Learn more about Users and Roles.
Sales/Purchase Approval Preferences
Once you have enabled the sales/purchase approval, you can configure your approval preferences. This will help you to restrict and define the role you would like to offer your approvers.
- Don’t configure sales/purchase approval: Transaction approval will not be configured for the Sales/Purchase module.
- All the approvers can approve: Users who have the approval permission can approve or reject the sales/purchase transactions.
Pro Tip: Click the Show Approvers option to view the list of all the users who have the permission to approve or reject the transactions. You can contact the Admin of your Zoho Inventory organization to get approval access.
- Configure multi-level approval with specific approvers: Set up a multi-level approval process where the sales and purchase transactions will be submitted and approved based on the reporting hierarchy of the company.
You can also set up a multi-level approval process for the transactions that should be verified two or more approvers before they’re finally approved and sent to the intended recipient. To set up an approval hierarchy for your organization:
- Go to Settings > Preferences > Approval.
- Click the Sales/Purchase Approval tab.
- Choose Configure multi-level approval with specific approvers.
- Select the approvers from the drop-down.
- Click + Add New Level to add more approvers, if needed.
- Click Save at the bottom of the page.
Any transaction created henceforth must be verified and approved by approvers of all levels to proceed further. A transaction becomes invalid if any one approver rejects it.
Note: You can add up to 10 approvers. Users with approval permission for the bills and purchase orders/ invoices and sales orders modules will only be listed for multilevel approval.
- Configure the notification preferences. You can choose to send email and in-app notifications to approvers when a transaction is submitted for approval, as well as, notify the submitter when their transaction has been approved.
Insight: In multi-level approval, the Level 1 approver will be notified first. If the transaction passes their approval, the next approver in line (Level 2) will receive an email and in-app notification to verify the transaction. Likewise, all the subsequent approvers who are a part of the multi-level approval process will be notified when it’s their turn.
Select the notification preferences for your approvers and submitters
Send email notifications when transactions are submitted for approval: Enable this option to send email notification to alert the approvers of a transaction that has been submitted. You can further choose from the options below to refine your approvers list:
- Notify all approvers when a non-approver submits a transaction: An email notification will be sent to all approvers, whenever a non-approver submits a transaction.
- Notify all approvers when an approver/non-approver submits a transaction: An email notification will be sent to all approvers, whenever an approver or a non-approver submits a transaction.
- Notify a specific email address: Enter the email address of a specific person you want to notify whenever a transaction submitted for approval.
Notify the submitter when a transaction is approved: The submitter will be notified whenever a transaction they’ve submitted has been approved.