Examples of authorisation rules for projects

In this company, all purchase orders relating to projects have to be authorised by a project manager. There are no other authorisation rules.

1. The following authorisation rules are set up:

   Authorisers	Lower value >=	Upper value <	Order originators	Rule Group
   Project Manager	£0	£0	Anyone	N/A

   You do not need to specify a value for this rule as once you specify Project Manager as the authoriser, all purchase orders relating to a project with a project manager require authorisation.

   This rule means that:

   • Orders not relating to a project do not require authorisation.
   • Orders relating to a project must be authorised by the project manager.
2. A purchase order is entered for £500 for an item for Project A.
3. The project manager for Project A opens Authorise Orders. The order for £500 appears on his list.
4. He authorises this order. The order status changes to Authorised.

In this company, all purchase orders relating to a project have to be authorised by a project manager. The Finance Director authorises all purchase orders above £10,000.

1. The following authorisation rules are set up:

   Authorisers	Lower value >=	Upper value <	Order originators	Rule Group
   Project Manager	£0	£0	Anyone	N/A
   Finance Director	£10,000	-	Anyone	0

   These rules mean that:

   • Purchase orders under £10,000 that are not related to a project, do not require authorisation.
   • Purchase orders over £10,000 that are not related to a project, must be authorised by the Finance Director.
   • Purchase orders under £10,000 that are related to a project, must be authorised by the Project Manager.
   • Purchase orders over £10,000 that are related to project, must be authorised by the Project Manager and the Finance Director.
2. The following orders are entered:
   1. Order A is for £300.
   2. Order B is for £650 for an item for Project X.
   3. Order C is for £12,000, for an item for Project Y.
3. Order A does not require authorisation and can continue to be processed.
4. Project Manager X checks the outstanding purchase orders and notices order B is waiting to be authorised. He opens Authorise Orders and authorises Order B. The order status changes to Authorised. He cannot authorise Order Y, as he is not the specified Project Manager.
5. Project Manager Y then authorises order C. The authorisation status remains as Not authorised as the order is over £10,000. It must also be authorised by the Finance Director.
6. The Finance Director authorises all his outstanding orders, including Order C. Order C is now authorised and can be processed.

All purchase orders over £1,000, relating to a project have to be authorised by the Project Manager. Orders over £5,000 must be authorised by the Finance Director. Any orders over £10,000 also have to be authorised by the Managing Director.

1. The following authorisation rules are set up:

   Authorisers	Lower value >=	Upper value <	Order originators	Rule Group
   Project Manager	£1,000	-	Anyone	N/A
   Finance Director	£10,000	-	Anyone	1
   Managing Director	£20,000	-	Anyone	2

   These rules mean:

   • Purchase orders under £10,000 that are not related to a project, do not require authorisation.
   • Orders under £1,000 that are related to a project, do not require authorisation.
   • Purchase orders over £1,000 that are related to a project, must be authorised by the Project Manager.
   • Purchase orders over £10,000 that are not related to a project, must be authorised by the Finance Director.

   • Purchase orders over £10,000 that are related to a project, must be authorised by the Project Manager and the Finance Director.

   • Orders over £20,000 that are not related to a project, must be authorised by the Finance Director and the Managing Director.
   • Order over £20,000 that are related to a project, must be authorised by the Finance Director, the Managing Director and the Project Manager.

2. The following purchase orders are entered:

   • Order A is for £2500 and is for Project X.
   • Order B is for £16,000. One line of this order for £200 is for Project Y.
   • Order C is for £25,000.
3. Order A is authorised by Project Manager X. As the order is less than £10,000, no-one else needs to authorise it.
4. The Finance Director then opens Authorise Orders and authorises all orders on his list. This includes Order B and Order C.
5. Order B is still not authorised. It must also be authorised by Project Manager Y, as the total order value is more than £1,000.
6. Although Order C is not related to a project, it is still not authorised. As it is more than £20,000, it must also be authorised by the Managing Director.