Introduction
This article explains how approvers can add spending limits to individual requests in Stampli. Using spending limits helps maintain budget adherence by allowing approvers to set a maximum spending amount for each line item in a request, offering an alternative to outright rejection.
Why It’s Important
Business Context / User Goals
Setting spending limits addresses the challenge of managing budgets and controlling expenditures during the procurement process. Instead of rejecting a request that might slightly exceed budget or require closer scrutiny, approvers can now provide conditional approval by setting a spending limit. This ensures that the procurement team is aware of the desired spending parameters and can make informed decisions when fulfilling the request. This feature helps users achieve the following goals:
Maintain budget control and prevent overspending.
Provide flexibility in the approval process instead of only allowing "approve" or "reject".
Communicate spending guidelines clearly to the procurement team.
Streamline the approval workflow by offering a middle ground for requests needing adjustments.
Who Should Use This Feature
This feature is most beneficial for:
Approvers: Managers, budget owners, or anyone responsible for approving procurement requests.
Finance Teams: To enforce budget policies and monitor spending.
Procurement Specialists: To understand and adhere to the spending guidelines set by approvers when fulfilling requests.
How It Works
Feature Summary
The spending limit feature in Stampli allows approvers to review a procurement request and, if needed, set a maximum spending amount for individual line items within that request. This establishes a spending limit for each line item in the request, guiding the procurement team during the fulfillment process.
Key Features / Capabilities
Approver-Initiated Limits: Approvers can set spending limits on any request type where the feature is enabled.
Line Item Specificity: Spending limits can be applied to each individual line item within a request.
Consideration by Procurement: Procurement specialists can view the recommended spending limits and consider them when fulfilling the request.
Step-by-Step Instructions
Getting Started
Ensure you have the necessary permissions to approve procurement requests in Stampli.
Procurement Admin
The spending limit feature must be enabled for the specific request type you are reviewing (details on how to do this below).
How To Turn On Spending Limits as an Admin
1. Navigate to your dashboard
2. Select "System Settings"
3. Select the "Procurement" tab
4. Click "Request Forms"
5. Select the appropriate Request Type
6. Toggle Spending Limits on
7. Click "Save"
8. Spending Limits have been enabled for this Request Type
How to set a spending limit in Stampli as an Approver
1. Open any request
2. Click "Spending Limits"
3. Click the "Set Spending limit" field.
4. Enter the spending limit you would like to apply to this line item.
5. Click "Save"
6. Click on the impacted line item to expand the window and see the spending limit being applied.
7. Notice the original estimated amount and the new spending limit applied to the impacted line item. To approve the request, click the "Approve" button in the request header.
8. Enter any approval comments and/or upload any supporting approval documentation and click "Approve".
Tips & Best Practices
Communicate with the requester if you are setting a spending limit to ensure they understand the adjustment.
Procurement specialists should carefully review the spending limits set by approvers before fulfilling the request.
Common Questions / Troubleshooting
What happens if the actual cost exceeds the spending limit?
The procurement specialist will need to review the discrepancy. It's important to understand that a spending limit set by an approver is not automatically enforced within the system. Instead, it serves as a guideline for the procurement specialist. They will then need to decide whether to seek further approval for the increased amount or find an alternative that aligns with the set spending limit.
Can I set a spending limit on the entire request instead of individual items?
Currently, spending limits can only be applied to individual line items within a request.
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