In this article we introduce Nook's Approval Rules, how they are set up, and common scenarios.
Nook's approval rules are designed to improve the oversight of financial transactions and trades. These rules are applicable to Purchase Orders, Invoices, Credit Notes, and Payment Runs, ensuring transactions meet specified criteria before they are processed. This guide provides an overview of how to set up and use approval rules, along with examples of common scenarios where they might be applied.
Setting Up Approval Rules
Approval rules in Nook can be configured for different financial documents based on the following criteria:
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For Purchase Orders, Invoices, and Credit Notes:
- Amount greater than: Transactions over a certain amount require approval.
- Supplier match: Transactions with specific suppliers trigger an approval process.
- Chart of accounts code match: Transactions tagged with specified chart of accounts codes need approval.
- Tracking Category match: Transactions within certain tracking categories require approval.
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For Payment Runs:
- The only approval rule criteria is the Payment Run amount, with approvals needed for amounts above a set threshold.
How Approval Rules Work
Once configured, approval rules automatically apply to the relevant transactions. Nook also supports multi-level approvals, allowing transactions to be reviewed by more than one approver in a predetermined sequence.
Approvals can be assigned to:
- Individual users: Designated users are selected as approvers for transactions.
- A group of users: A specified number of users from a department or team must approve a transaction, enabling a collective review process.
Approval Requests
When you have an approval rule set up and a financial document falls under one of these rules, once submitted, the designated approvers will receive an Approval Request from Nook by email (these emails are sent for every approval request individually, or you can configure a daily wrap-up email for approvers with everything listed they need to approve).
In the Approval Request email, approvers will see high-level information, with an Approve or Reject button on the email. If they are happy with the high-level information to inform their decision, they can click either Approve or Reject, and Nook will create a pre-populated email that can be sent into Nook for the approval or rejection.
If approvers want to take a more detailed look at the financial document or payment run, they can click the link on the email, which will take them to that document or payment run in Nook, to then approve or reject.
Common Use Cases
Approval rules are particularly useful in scenarios such as:
- High-Value Transactions: Ensuring transactions above a certain value are reviewed by senior team members or heads of departments.
- Vendor Management: Managing risk by requiring approvals for transactions with certain suppliers.
- Budget Control: Using account codes and tracking categories to enforce budget compliance, requiring approval for transactions that exceed budget limits or are outside of budgeted areas.
Conclusion
Nook.io's approval rules provide a mechanism for monitoring and controlling financial transactions. They ensure that transactions are reviewed according to the organization's internal controls and policies. By setting up approval rules, organizations can manage risk, enforce budgetary compliance, and ensure transactions are authorised before processing.