The Approval By Terms feature allows an administrator to set restrictions on what terms a user can approve up to, based on the internal value of the term configured in settings, calculated in ascending order. This will be controlled by the approval level the user is assigned to, as well as the Approval By Terms policy configured in settings.
How can I configure the policy and how does it work?
- The Approval by Terms Policy can be configured under Account Settings > Organization > Business Group > “Update Group” > “Enable Approval by Credit Term” to “YES”.
- This policy is applicable at the business group level, which means that for each business group, an individual Approval by Terms Policy can be configured. To configure the policy, navigate to Account Settings > Credit Policy > Approval Policy > Turn flag to “ACTIVE”.
- The Credit Terms Policy Approval Levels match the $ Amount Approval Levels. The levels can range from 1 to 5, with 5 being the highest level of approval authority. Each level of Terms Approval authority will allow the user to approve credit requests with terms UP TO their level of authority. The level is assigned to the user under Account Settings > User Admin.
- We are matching the Credit Terms to the corresponding Approval Levels of each user by utilizing the “Internal Value” configured for each Credit Term. These can be configured under Account Settings > Credit Policy > Terms. The internal value connects the two Approval Policies with the Credit User.
- Example: A user with Approval Level 3 can approve any request up to $2,000,000 if the request is for Credit Terms of Net 30 or lower. For any request of the same $ Amount but higher terms, the user will only be able to “Setup Approval” but cannot approve the request themselves.
For further reference, please see the images below: