It is a rule-based approval structure where:
- Approvers are assigned per department
- Approvals follow a management hierarchy
- Approval levels change based on transaction value
- ERP enforces approvals before confirmation/posting
Core Components of the Approval Matrix
A. Department
- Sales
- Finance
- Procurement
- Operations
- HR
Each department has its own approvers
B. Approval Levels (Hierarchy)
Example hierarchy:
- Line Manager
- Department Head
- Finance Manager
- CFO / CEO
C. Amount-based Rules (Thresholds)
| Amount Range | Approval Required |
|---|---|
| ≤ 5,000 | Line Manager |
| 5,001 – 25,000 | Dept Head |
| 25,001 – 100,000 | Dept Head + Finance |
| > 100,000 | CFO / CEO |
D. Document Types
- Purchase Requisition (PR)
- Purchase Order (PO)
- Vendor Bills
- Payments
- Expense Claims
Each document can have separate approval logic
Sample Approval Matrix (Department-wise)
Procurement Department – Purchase Orders
| Amount | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| ≤ 10,000 | Procurement Manager | – | – |
| 10,001 – 50,000 | Procurement Manager | Finance Manager | – |
| > 50,000 | Procurement Manager | Finance Manager | CEO |
ERP Workflow Logic (How System Enforces It)
- User creates transaction
- ERP detects:
- Department
- Amount
- Document type
- ERP assigns approval route automatically
- Status changes:
- Draft → Waiting for Approval → Approved → Confirmed
- Higher approvers cannot be skipped
- Audit trail is maintained
Why Choose BITS IT Solutions
✅ Proven expertise in ERP implementation across multiple industries
✅ Certified and experienced consultants
✅ End-to-end support — from consultation to training and after-sales service
✅ Scalable and cost-effective business solutions
✅ 100% customer satisfaction and ongoing technical support
Contact Us
BITS IT Solutions LLC
📍 Al Quoz, Sheikh Zayed Road, Dubai, UAE
📞 Phone: +971 4 229 8629 / +971 50 889 4203
📧 Email: info@bitsitworld.com
🌐 Website: www.bitsitworld.com
