The Procurement Glossary » Approval Hierarchy
Approval Hierarchy
Procure-to-Pay
Definition
The ordered chain of approvers through which a purchase must pass, typically escalating with value.
Explanation
The hierarchy translates the delegation of authority into a routing path. Low-value items may need a single approver; larger ones climb the chain. A clear hierarchy prevents bottlenecks and ensures the right seniority signs off.
Example
The RM40,000 requisition climbs the hierarchy: team lead, department head, then finance director.
Related terms
- Approval Workflow — The defined sequence of authorisations a requisition, order or invoice must pass through before it can proceed.
- Delegation of Authority (DOA) — The formal policy defining who can approve spend and up to what value, at each level of an organisation.
- Purchase Requisition (PR) — An internal request to buy something, raised by a staff member and routed for approval before any order is placed.
Frequently Asked Questions
What is Approval Hierarchy?
The ordered chain of approvers through which a purchase must pass, typically escalating with value. The hierarchy translates the delegation of authority into a routing path. Low-value items may need a single approver; larger ones climb the chain. A clear hierarchy prevents bottlenecks and ensures the right seniority signs off.
Can you give an example of Approval Hierarchy?
The RM40,000 requisition climbs the hierarchy: team lead, department head, then finance director.
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