What is order approval workflow?

An order approval workflow is a process that requires a B2B order to be reviewed and approved by authorized people before it is finalized or fulfilled. It is commonly used when purchases must follow company budgets, spending limits, procurement policies, or management controls.

An order approval workflow may include:

• Order creation: An employee or buyer creates an order.
• Automatic checks: The system checks price, quantity, budget, or purchasing rules.
• Approval request: The order is sent to a manager, purchasing officer, or finance team.
• Review and decision: The authorized person approves, rejects, or requests changes.
• Order processing: Once approved, the order can proceed to payment, fulfillment, or invoicing.
• Record keeping: The system records approvals and related activities for tracking and auditing.

Example: An employee places a ₹2 lakh equipment order. Because the amount exceeds the company’s ₹1 lakh approval limit, the order is automatically sent to a department manager. After approval, it is released to the supplier for fulfillment.

Order approval workflows help businesses control spending, enforce purchasing policies, reduce unauthorized purchases, and maintain accountability. They can be integrated with procurement, ERP, eCommerce, and accounting systems.