In this article, we will explore the concept of Margin Threshold and its significance in streamlining approval workflows. Margin Threshold allows companies to set conditions that permit minor changes to be made without triggering repeated approval processes. By understanding and utilizing Margin Threshold effectively, organizations can enhance efficiency and reduce unnecessary administrative tasks.
What is Margin Threshold?
Margin Threshold is an amount expressed as a percentage of the main threshold. It represents the limit by which a purchase order can be modified without requiring additional approval workflows. This feature empowers companies to establish additional conditions and exemptions, sparing them from constant approval processes for every minor adjustment made to a purchase order.
Setting Margin Threshold
Setting the Margin Threshold is a straightforward process. Follow the steps below to configure it within an approval template for a purchase order:
- Open or create an approval template for the purchase order.
- Build the workflow by following the relevant guidelines outlined in our articles on creating approval workflows.
- Define the starting threshold for a specific approval, which is the amount that triggers the initiation of an approval process.
- Once the starting threshold is set, introduce the Margin Threshold by specifying the permissible percentage above the starting threshold that can be exceeded without requiring repeated approvals.
- Save the template, ensuring that the Margin Threshold is incorporated.
Benefits of Margin Threshold
Implementing Margin Threshold offers several benefits for companies:
Increased Efficiency: By setting a Margin Threshold, minor changes can be accommodated without initiating repetitive approval processes. This allows procurement teams to focus on more critical tasks, saving time and resources.
Flexibility in Adjustments: Margin Threshold provides flexibility to make small changes within a predefined range without disrupting the procurement workflow. This flexibility promotes agility and responsiveness in addressing changing business requirements.
Enhanced Decision-Making: Margin Threshold enables teams to strike a balance between control and autonomy. It ensures that significant changes are properly scrutinized while granting autonomy for minor adjustments, facilitating faster decision-making.
Margin Threshold is a valuable tool for organizations seeking to optimize their approval workflows and streamline procurement processes. By utilizing Margin Threshold effectively, companies can establish additional conditions for minor changes to purchase orders, reducing the need for repetitive approvals. This approach enhances efficiency, empowers teams to adapt to evolving circumstances, and promotes informed decision-making.
Take advantage of the Margin Threshold feature to simplify your approval workflows and drive efficiency within your procurement processes.
If you have any questions or need further guidance on setting up Margin Thresholds, please reach out to our team. We are here to support you and help you make the most of this powerful feature.