Implementing an approval process for purchase orders (POs) is a critical internal control that prevents unauthorized spending and ensures purchases align with company policy. NetSuite allows you to create approval routing rules that automatically direct POs to different approvers based on their total amount. This guide provides a fact-checked overview of how to set up amount-based PO approval routing.

The Goal: Tiered Approval Thresholds

The objective is to create a system where the level of oversight matches the size of the purchase. For example:

• Low-Value POs (e.g., under $1,000): Can be approved by a direct manager.

• Mid-Value POs (e.g., $1,000 - $10,000): Require approval from a Department Head.

• High-Value POs (e.g., over $10,000): Require approval from a VP or C-level executive.

  
  

Enabling the Approval Routing Feature

Before you can create rules, you must enable the feature.

1. Navigate to Setup > Company > Enable Features.

2. Go to the Transactions subtab.

3. Under the Approval Routing section, check the box for Purchase Orders.

4. Click Save.

   
   

Creating Approval Rules

Approval rules define the conditions that trigger a specific approval chain. While complex, multi-step approvals are best handled with SuiteFlow (NetSuite's workflow engine), the standard Approval Routing feature is excellent for straightforward, amount-based routing.

1. Navigate to Customization > Workflow > Approval Routing > Approval Routing Rules > New.

2. Select Purchase Order as the Record Type.

3. Define the rule's conditions and approvers.

Example: A Three-Tier Approval Structure

Rule 1: POs Under $1,000

• Condition: Total is less than 1000

• Approver Type: Supervisor

• Effect: The PO is routed to the direct supervisor listed on the creator's employee record.

Rule 2: POs from $1,000 to $9,999.99

• Condition 1: Total is greater than or equal to 1000

• Condition 2: Total is less than 10000

• Approver Type: Role

• Approver: Department Manager (Select the specific role)

Rule 3: POs $10,000 and Above

• Condition: Total is greater than or equal to 10000

• Approver Type: Employee

• Approver: VP of Finance (Select the specific employee)

Rule Evaluation Order

NetSuite evaluates the rules in the order they appear on the list. It applies the first rule that matches the transaction. Therefore, you should always order your rules from most specific to least specific (typically highest dollar amount to lowest).

1. Rule for > $10,000

2. Rule for $1,000 - $9,999.99

3. Rule for < $1,000

   
   

Best Practices and Troubleshooting

• Use SuiteFlow for Complexity: If your process requires multiple approvers for a single PO, conditional logic beyond just the total amount, or different paths based on department or class, you should use SuiteFlow. The standard approval routing feature is best for simple, single-approver tiers.

• Check Supervisor Hierarchy: If you use supervisor-based routing, ensure that the Supervisor field is correctly populated on all employee records.

• Test Thoroughly: Create test POs at each threshold boundary (e.g., $999, $1,000, $10,001) to ensure they are routed to the correct approver.

• Stuck POs: If a PO is stuck in "Pending Approval," verify that the designated approver has the correct permissions to view and approve purchase orders and that their employee record is active.

Communicate the Process: Ensure all users who create purchase orders understand the approval thresholds and who their approvers are.