Procurement manager
Finance director
Department manager
Operations lead
Budget owner
Controller
This process is used when an employee or team submits a purchase request that requires authorization before a commitment is made to a vendor or supplier. It is triggered when a purchase exceeds a defined spending threshold, falls outside pre-approved categories, or requires budget validation. Purchase approval is especially important when purchases span multiple budget owners, require vendor selection justification, or involve capital expenditures that must follow organizational governance policies. It applies across all industries and organizational sizes.
The requester initiates the purchase request with business justification and cost details. The requester’s direct manager reviews and provides initial authorization. Finance or budget owners validate that funds are available and the purchase aligns with departmental or project budgets. Procurement evaluates vendor selection, pricing, and contract terms. For high-value or capital purchases, executive approval may be required based on organizational spending authority policies.
Faster purchase cycle times by routing requests to the correct approvers immediately based on amount, category, and budget ownership. Reduced maverick spending because every purchase follows a structured path that enforces policy compliance before commitment. Clear budget accountability with real-time validation that ensures purchases are tied to approved budgets before authorization is granted. Fewer procurement bottlenecks because standard purchases are processed quickly through streamlined paths while exceptions receive appropriate review. Consistent policy enforcement across departments and locations, ensuring that spending authority, vendor rules, and approval thresholds are applied uniformly.
Your version of this process may vary based on roles, systems, data, and approval paths. Moxo’s flow builder can be configured with AI agents, conditional branching, dynamic data references, and sophisticated logic to match how your organization runs this workflow. The steps below illustrate one example.
Purchase request submission
The process begins when an employee or team submits a purchase request, including the item or service description, estimated cost, business justification, preferred vendor, and the budget or cost center to be charged. An AI agent can assist by validating the request for completeness, checking whether the requested item falls under a pre-approved category or existing contract, and flagging any missing information before the request enters the approval chain.
Manager review and initial authorization
The request is routed to the requester’s direct manager for initial review. The manager evaluates whether the purchase is justified, aligns with team priorities, and falls within their spending authority. If the purchase is within the manager’s authorization limit and meets policy criteria, it proceeds to budget validation. If the amount exceeds the manager’s authority, the request is escalated to the next level of approval based on organizational spending tiers.
Budget validation and finance review
Finance or the designated budget owner verifies that sufficient funds are available in the relevant budget or cost center. This review also confirms that the purchase aligns with approved spending categories and does not conflict with any active purchasing restrictions. If the budget is insufficient or the purchase raises financial concerns, the process branches to request additional justification, suggest alternative funding sources, or defer the purchase. AI agents can cross-reference the request against current budget utilization data from connected financial systems.
Procurement and vendor assessment
For purchases that involve vendor selection or contract negotiation, the procurement team evaluates the proposed vendor, pricing competitiveness, and contract terms. If an existing contract or preferred vendor applies, procurement confirms alignment. If the purchase requires competitive bidding or a new vendor onboarding process, those steps are initiated within the workflow before final approval can proceed.
Final approval and purchase authorization
Once all reviews are complete, the purchase is authorized by the final approver, whose authority level corresponds to the purchase amount and category. The approved request is released for execution—typically generating a purchase order or triggering a payment process. The requester and relevant stakeholders are notified, and the approval record is retained as part of the organization’s financial governance documentation.
This process commonly relies on inputs such as purchase request forms, cost estimates, vendor quotes, budget availability data, and contract records. It may be triggered by a form submission, an email request, or a system event in an ERP or procurement platform. Connected systems such as NetSuite, SAP, or Oracle provide budget and financial data, while procurement platforms and contract management tools supply vendor and pricing information.
Key decision points include whether the purchase falls within the requester’s or manager’s spending authority, whether the budget has sufficient funds to cover the request, whether vendor selection meets procurement policy and competitive requirements, and whether the purchase amount requires escalation to executive approval. If any condition is not met, the process branches to request additional justification, alternative vendors, or budget reallocation before authorization.
Vague business justification on the purchase request, causing approvers to return it for clarification and extending the cycle. Budget validation done after approval is granted, leading to commitments that exceed available funds. Spending authority thresholds not clearly defined, resulting in inconsistent escalation and approval delays. Vendor selection bypassed for urgency, creating procurement policy violations and missed savings opportunities. Approved purchases not tracked against budget in real time, causing overspending to go undetected until month-end reconciliation.
Routes purchase requests to the correct approval chain based on amount, category, and organizational spending authority, ensuring that every request follows the right path without manual routing.
AI agents assist with request validation by checking completeness, cross-referencing preferred vendor lists, and flagging budget availability issues before the request reaches approvers.
Orchestrates parallel reviews when manager approval, budget validation, and procurement assessment can happen concurrently, reducing the overall purchase cycle time.
Connects to ERP and procurement systems such as NetSuite, SAP, or Oracle to pull real-time budget data and push approved requests directly into purchase order generation workflows.
Maintains a complete record of every approval, budget check, and vendor assessment for each purchase, supporting financial governance and audit requirements.
