Pre-Approval Review

Overview

The pre-approval review framework comes into play if an application needs to be reviewed by one or more user(s) before approval. Each reviewing officer will be notified of an account that is pending their approval and will have a spot to input their comments before approving/declining the application.

Benefits

• When receiving an application with a very high limit relative to the average request, many companies require a C-suite executive to sign off on that application (CFO, Pres, CEO, etc.).
  1. The individual with final authority will be able to see multiple points of validation and approval within the department.
  2. The automatic workflow greatly reduces the travel time of getting the file to each person’s desk and passing it to the next.
  3. The hierarchy can be customized to match your approval policy and users can be a reassigned or adjusted as needed.

Dependencies and Configurations

For the pre-approval framework to function as expected, the number of approving officers with approval authority has to be greater than or equal to the Credit Amount Requested.

Additionally, the review hierarchy will be defined in the Approval Policy tab under Account Settings.

Path – Account Settings>Credit Policy>Approval Policy.

Users must be set up with review authority to be able to participate in pre-approval review. These settings can be found under the Approval Authority section within User Admin.

Pre-Approval Process Flow

A user without approval authority sees the following option on the credit decision screen.

After clicking on Setup Pre-Approval review, the user would see a tab in which they can send the application to the appropriate reviewing officers or let the system assign this for review based on a round robin framework.

1. If “Direct Assignment Only” is turned ON

By clicking "YES" on the direct assignment button, the user will see a list of reviewing officers that have the authority to review this application.

2. If “Direct Assignment Only” is turned OFF

If the Direct Assignment Only flag is turned to “NO” the user has two options: either allow the system to choose a reviewing officer randomly by round robin method, or choose to directly assign one or multiple reviewing officers from the drop down list.

The status of the application would change to “Pre-Approval Review in Progress” with details of the reviewing officers responsible for moving this application towards approval.

The analyst that set this application up for review would have the following options.

As a user with review authority, on the credit decision tab, I have the option to approve the review for this application or decline the request.

Once the application is approved, a record of my approval will be present on the credit decision tab. The application would then remain in pending status, as it is yet to be approved by the second review user.

Once both pre-approval users have approved the application, the status will change to “Approval in Progress” and this application will be routed to the appropriate approval officers.