Authorisation Process

Formal

The internal process inside a company to approve the issue of a purchase order to a supplier. The more money required, the more signatures required… plus the more likely the spend will need to be validated by a detailed investment and business case.

Real-world Example

A department head wants to buy $150,000 of new software. Because it exceeds their approval limit, the request has to go through the company's authorisation process - getting sign-off from the CFO and, above a certain threshold, the board, backed by a formal business case.