Have you ever felt overwhelmed by the sheer volume of tasks and approvals in your business? If you’re like me, juggling multiple roles and responsibilities, you know the value of a streamlined workflow. Enter NetSuite approval workflows. They’re designed to simplify and automate the approval process, ensuring that nothing slips through the cracks. In this blog, I’ll walk you through what NetSuite approval workflows are, how they can benefit your business, and provide examples of different workflows that you can implement.
What Are NetSuite Approval Workflows?
Think of NetSuite approval workflows as your personal assistant, helping you manage and track approvals for various processes within your business. Whether it’s approving a purchase order, sales order, expense report, or journal entry, these workflows automate the process, ensuring that the right people are notified, and approvals are obtained promptly.
In simple terms, an approval workflow is a series of steps that a transaction or record must go through before it is finalized. Each step requires approval from designated individuals. This ensures accountability, transparency, and traceability while streamlining processes and reducing errors.
The Benefits of Using NetSuite Approval Workflows
Efficiency and Time-Saving: With automated workflows, you can say goodbye to chasing down approvals. NetSuite takes care of the notifications and reminders, ensuring that approvals are handled promptly.
Accuracy and Consistency: Manual processes are prone to errors and inconsistencies. Automated workflows ensure that every transaction follows the same approval process, reducing the risk of mistakes.
Transparency and Accountability: Approval workflows provide a clear audit trail. You can easily see who approved what and when, which is crucial for compliance and accountability.
Scalability: As your business grows, so do your approval needs. NetSuite workflows are scalable, meaning they can handle increasing volumes without a hitch.
Common NetSuite Approval Workflows
Purchase Order Approval Workflow
A purchase order (PO) approval workflow is a common example in many businesses. Here’s a simplified version:
Creation: An employee creates a PO and submits it for approval.
Approval: The PO is routed to the department manager for initial approval.
Secondary Approval: If the amount exceeds a certain threshold, it might require a second approval from a higher authority, such as the finance manager or CFO.
Finalization: Once all approvals are obtained, the PO is finalized and sent to the vendor.
This workflow ensures that purchases are vetted at multiple levels, preventing unauthorized or unnecessary spending.
Expense Report Approval Workflow
Managing employee expenses can be a headache, but with an approval workflow, it’s a breeze:
Submission: An employee submits an expense report.
Manager Approval: The report is sent to the employee’s direct manager for approval.
Finance Review: After manager approval, the report goes to the finance team for a detailed review.
Final Approval: If the expenses are within policy, the finance team approves the report, and reimbursement is processed.
This workflow ensures that expenses are reviewed and approved promptly, reducing delays in reimbursement and maintaining compliance with company policies.
Sales Order Approval Workflow
Sales orders are critical to revenue, and an approval workflow can help streamline the process:
Creation: A sales representative creates a sales order and submits it for approval.
Sales Manager Approval: The order is routed to the sales manager for approval.
Credit Check: If the customer has a credit limit, the order may go through a credit check process.
Final Approval: Once approved, the order is processed and fulfilled.
This workflow ensures that sales orders are reviewed for accuracy and compliance before they are processed, reducing the risk of errors and ensuring customer satisfaction.
Journal Entry Approval Workflow
This approval workflow can be one of the most important a business implements. They can ensure compliance with internal processes and external regulations while maintaining separation of duties. Here’s an example of how a Journal Entry approval workflow could look like:
Creation: An accounting team member creates a Journal Entry for payroll
Manager Approval: The Journal Entry is routed to the team member’s manager for approval.
CFO Approval: If the amount is higher than a specified threshold, the CFO will then be brought in for final approval.
Finalization: The Journal Entry is set to Approved and hits the General Ledger
Customizing Approval Workflows in NetSuite
One of the great things about NetSuite is its flexibility. You can customize workflows to suit your specific business needs. Here’s a quick overview of how you can do that:
Identify the Process: Determine which process you want to automate (e.g., purchase orders, expense reports, sales orders).
Map Out the Workflow: Outline the steps and approvals required. Who needs to approve? What conditions must be met?
Configure in NetSuite: Using NetSuite’s Workflow Manager, you can set up the workflow by defining the steps, roles, and conditions.
Test and Refine: Before going live, test the workflow to ensure it works as expected. Make any necessary adjustments.
Deploy: Once you’re satisfied with the workflow, deploy it and start enjoying the benefits of automation.
Extra ‘Out of the Box’ Features of NetSuite Approval Workflows:
Routing transactional records is just one of the (albeit an essential) features of NetSuite workflows. With a workflow, you can lock the record from being edited once it’s submitted for approval or after it’s fully approved. This can prevent users from editing a record that’s been approved. Custom emails can be sent with links to the record, making it easy for approvers to view and approve/reject the transaction. Approvals can also be routed to all users with a pre-defined role or in a Group, making it even easier to gain approval in the case of one individual being out (or, let's face it, simply too busy to get to it on time). These are just a few of the many features that can be added to an approval workflow to ensure that it aligns with your business needs.
Gap Consulting Solutions’ Custom ‘Approval Delegation’ Feature:
Approval Workflows are one of the most requested customizations we get here at Gap Consulting Solutions and one of the steps we see skipped most (whether in business processes or existing workflows) is the “what happens if an approver is out?” step. Often, approval processes have an approval being routed to one person. We make it a point to always ask the question “What happens when they’re out?” and, often, we don’t get much of an answer. It’s why we created a custom ‘Approval Delegate’ feature. It allows users to go in and set an approver as “out” (with a start date and end date) and assign a delegate (this can be another individual or a group of approvers). It can even be flexible enough to set things such as: limits (i.e. the minimum/maximum a delegate can approve), classifications (i.e. departments or locations a delegate can temporarily be associated with), and even roles that can be temporarily assigned to the user if using role-based approvals.
Tips for Successful Implementation
Implementing approval workflows can be a game-changer, but it’s important to approach it thoughtfully. Here are some tips for success:
Start Small: Begin with one or two workflows and gradually expand. This allows you to fine-tune the process and manage the transition smoothly.
Involve Stakeholders: Engage the people who will be using the workflows in the planning and testing phases. Their input is invaluable for creating effective workflows.
Training and Support: Provide training and support to ensure everyone understands how to use the new workflows. This will help minimize resistance and ensure a smooth transition.
Monitor and Adjust: Continuously monitor the performance of your workflows and make adjustments as needed. This ensures they remain effective as your business evolves.
NetSuite approval workflows can be a powerful tool for streamlining your business processes. By automating approvals, you can save time, reduce errors, and improve transparency and accountability. Whether you’re managing purchase orders, expense reports, or sales orders, there’s a workflow to suit your needs.
Remember, the key to successful implementation is to start small, involve stakeholders, provide training, and continuously monitor and adjust your workflows. With a thoughtful approach, you can transform your business operations and enjoy the benefits of automation.
So, what are you waiting for? Dive into NetSuite approval workflows and take the first step towards a more efficient and productive business. Your future self will thank you!
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