How to Set Up Purchase Order Approval Flows in Luminous

Establish approval flows for purchase orders (POs) to meet criteria like total cost or specific conditions, ensuring that high-value POs or certain transactions get the necessary authorizations before proceeding. Here’s Luminous' step-by-step guide to setting up these approval flows.

Step 1. Access System Settings

1. Go to the bottom left corner of Luminous.
2. Click your name and select System Settings.

Step 2. Create an Approval User Template

1. Within System Settings, click Approval User Template Settings.
2. Click Create New Template.
3. Name the template (e.g., "High-Value PO Approvals").
4. Select the users who need to approve the action:
   • Example: Add Jared and Lucas as approvers.
5. Click Save to finalize the template.

Step 3. Create an Approval Rule

1. Return to System Settings and click Approval Rule Settings.
2. Click Create Approval Rule.
3. Configure the approval rule:
   • Name: Provide a clear name (e.g., "PO Over 20k").
   • Model: Select Purchase Order.
   • Template: Choose the approval template you just created.
   • Operator: Choose how the rule's conditions are combined (e.g., "or").
   • Condition: Set the criteria for the rule, such as:
     • Total Cost: Greater than $20,000.
4. Click Save to activate the rule

Step 4. How Approval Flows Work

Once the rule is active:

• Any PO meeting the specified criteria (e.g., over $20,000) will trigger the approval flow.
• Emails will be sent to the designated approvers (e.g., Jared and Lucas).
• Approvers can review the PO and click Approve Order directly from the email.

Step 5. Monitor Approval Status

1. Go to the Purchase Orders page in Luminous.
2. Look for the Approval Status column:
   • Pending Approval: Indicates the PO is awaiting approval.
   • Approved: Indicates the PO has been approved.

Key Benefits of Approval Flows

• Ensures high-value or critical POs are reviewed before being sent to suppliers.
• Streamlines the approval process with email notifications and clear status updates.
• Improves oversight and accountability in purchasing workflows.

Key Takeaways

• Approval flows have two parts: an approval user template (who approves) and an approval rule (when approval is needed).
• Both are set up in System Settings.
• If a template has more than one approver, all of them need to approve.
• Rules use conditions like Total Cost greater than $20,000 to decide which POs need approval.
• Approvers get an email with an Approve Order button, and the PO's Approval Status updates from Pending to Approved.

Example Approval Rules

Every team sets thresholds differently, but here are a few common setups:

• High-value POs: POs with a total cost over a set amount, such as $20,000, go to the founder and the head of operations.
• Tiered approvals: a lower threshold goes to a purchasing manager, while a higher threshold goes to finance as well, using separate templates and rules.
• New buyers: while someone is learning your purchasing process, approval rules give a senior team member a chance to review their POs before they go to suppliers.

Start with one simple rule, see how it fits your workflow, and add more as your purchasing grows.

Common Questions

Do all approvers need to approve? In the video's example, both Jared and Lucas are on the template, and both need to approve the PO.

How do approvers know a PO needs their approval? They get an email for each PO that matches the rule, with an Approve Order button.

Where can I see which POs are still waiting? On the Purchase Orders page, check the Approval Status column for POs marked Pending.

Related videos: How to Manage Staff and Users in Luminous and How to Send a Purchase Order (PO) to Your Supplier in Luminous.

By setting up approval flows, you can maintain control over significant purchases and ensure compliance with company policies.