Purchase order approval process flowchart

Purchase order approval process flowchart

A worked example to adapt. Rename steps, add branches and owners to match how your team actually works.

flowchart TD
  s(["Employee submits purchase request"])
  bud["Check budget and cost center"]
  d1{"Within budget?"}
  rej(["Return to requester"])
  d2{"Amount over approval limit?"}
  mgr["Manager approves"]
  fin["Finance director approves"]
  ven["Confirm approved vendor"]
  po["Issue purchase order"]
  rec["Receive goods or services"]
  match["Three-way match: PO, receipt, invoice"]
  e(["Release payment"])
  s --> bud
  bud --> d1
  d1 -->|No| rej
  d1 -->|Yes| d2
  d2 -->|Yes| fin
  d2 -->|No| mgr
  fin --> ven
  mgr --> ven
  ven --> po
  po --> rec
  rec --> match
  match --> e

About this purchase order approval process flowchart

Purchase approvals balance control against speed. Approval thresholds let small purchases move quickly while larger ones get a second look, and the three-way match at the end stops paying for things that never arrived.

Set your own thresholds and approver roles; the example uses a single limit between manager and finance approval.

Step by step

1. Request. The requester submits what, why, cost and cost center.
2. Budget check. Over-budget requests return to the requester before anyone approves them.
3. Approval routing. The amount decides whether the manager or finance approves.
4. Purchase order. Purchasing confirms the vendor and issues the PO.
5. Receive and match. Payment is released only when the PO, receipt and invoice agree.

How to make it in flow-chart.io

1. Start from the example. Edit the text in the generator box above so it names your own approval limits and roles, then press Generate. The free preview needs no sign-up.
2. Add the branches. Add the decision points that matter for you, for example new vendor onboarding? or IT security review for software. Each decision becomes a diamond with labeled outcomes.
3. Assign owners. Save the diagram to the editor (free account) and rename steps to show who does what: requester, manager, finance and purchasing.
4. Share or export. Share a read-only view link: people with the link can view the diagram but not edit it. Downloads as PNG, SVG or PDF are part of Flow Pro (see pricing).

Tips

• Write the dollar thresholds on the decision diamonds.
• Add a new-vendor branch if vendors need tax and bank verification.
• Show what happens when the three-way match fails.

Frequently asked questions

What is a three-way match?

Comparing the purchase order, the goods receipt and the vendor invoice before paying, so quantities and prices agree.

How many approval levels should I show?

As many as your policy has. Each threshold becomes a decision diamond.

Is there an invoice approval example?

Yes; see the invoice approval flowchart, which covers invoices that arrive without a PO.

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