Using Dynamic Spend Approvals

Overview

Dynamic Spend Approvals make it easy to assign the right approvers for procurement requests, ensuring that approvals are tailored to your organization’s rules. Instead of manually assigning approvers for every workflow or request, tasks are automatically routed based on the criteria of spend thresholds, department rules, and company-wide policies.

This approach saves time, reduces errors, and ensures high-value or sensitive requests are always reviewed by the appropriate stakeholders.

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Step-by-Step Demo

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What Are Dynamic Spend Approvals?

Dynamic Spend Approvals streamline the approval process by using predefined rules to route requests to the appropriate approvers. These approvals are set up to align with your organization's structure and spending policies, ensuring the right people review each request.

This process works by assigning tasks automatically based on:

• Spend Levels: Route requests to different approvers depending on the anticipated spend (e.g., Over $10K).
• Department Rules: Assign approvals based on the requesting department’s needs or structure.
• Business Approvers: Add company-wide groups like Finance, Legal, or Security to oversee specific requests.

By automating approvals, you reduce manual oversight, eliminate bottlenecks, and maintain compliance with organizational policies.

Benefits

• Streamlined Workflows: Automate the assignment of approvers, reducing the need for manual workflow configuration. This saves time, eliminates repetitive tasks, and ensures that workflows move forward without delays.
• Improved Oversight: Ensure high-value or sensitive requests are always reviewed by the appropriate stakeholders, such as finance leads or legal teams, to maintain compliance and mitigate risk.
• Better change management: Update approvals in one place to align with changing business needs, such as evolving spend thresholds or department structures, without needing to redesign workflows from scratch.

Preliminary Setup

Before configuring Dynamic Spend Approvals, ensure that all required users and departments are set up in Tropic:

• Add approvers as users in Tropic. For detailed instructions, see Adding Single and Bulk Users.
• Set up the departments where approvals will be required. For guidance, see Manage Departments.

Once users and departments are ready, proceed to configure approvers and workflows.

How to Configure Dynamic Spend Approvals

Step 1: Set Up Departments

Departments define where requests originate and are essential for configuring department-specific approval rules. If your organization already has departments set up, the system will notify you if any departments lack approvers, prompting you to complete the setup.

• Navigate to Settings > Departments.
• Add each department that will require approvals (e.g., Finance, IT, Marketing).
• Save your changes.

Step 2: Configure Spend Levels  

Once your departments are set up, the next step is to define your spend levels for routing requests to the appropriate approvers. Spend levels determine which approvers are assigned to each request based on its value.

How to Set Up Spend Levels:

• Navigate to Settings → Approvers.
• Click Manage Spend Levels.
• Click Edit 
• Here, you will define the spend thresholds for all departments.
• You can enter a custom name for each spend level to make it more relevant to your organization's approval process.
• Add a new spend level (e.g., Over $0, Over $10K, Over $50K).
• Edit an existing spend level to reflect updated values. 
• Remove unnecessary levels by clicking Delete next to the level.

Assigning Approvers for Each Spend Level:

• In the Department Approvers section, click on the department name (e.g., Finance, IT).
• For each spend level, assign the appropriate approvers. Here's is one example of how you can configure it:
  • Over $0: Assign Finance Analyst.
  • Over $10K: Assign Finance Manager.
  • Over $50K: Assign VP of Finance.
• Once you've set up the spend levels, make sure to save your changes.

Notes:

• You can assign up to 10 approvers per spend level. If multiple approvers are assigned, tasks can be completed by any of the assigned approvers (only one approver completes the task, similar to Multiple Assignees).
• Spend levels can overlap, which may trigger multiple tasks for a request. If tasks are triggered due to overlapping spend levels, they can be completed either simultaneously (tasks open at the same time) or consecutively (tasks open one after the other), depending on your approval settings.
• Requests Under $5K: If no spend level is defined for requests under a certain threshold (e.g., under $5K), those requests will not require approval.
• Business Group Spend Levels: These are configured separately for each business group and do not share settings with departments.

Check for Missing Approvers:

• If any spend levels are left without approvers, a warning will appear, prompting you to assign approvers. This serves as a last check before finalizing your configuration.

• Approvers do not need to belong to the department they are assigned to, but a warning will appear if there’s a mismatch. Review the list of approvers carefully to ensure they align with your organization’s needs.

Step 3: Configure Business Approvers

Business Approvers allow you to manage cross-departmental approval rules. These approvers often represent key organizational stakeholders, such as Procurement, Legal, or IT, and ensure compliance for high-value or sensitive requests.

• Navigate to Settings → Approvers → Business Approvers tab.
• Click Add Business Group and give it a name (e.g., Procurement Approvers, IT Security).
• Define spend levels (e.g., Over $0, Over $50K, Over $250K).
• If applicable (if spend levels overlap), choose whether tasks for overlapping spend levels should appear Simultaneously or Consecutively:
  • Simultaneously: All tasks open at the same time.
  • Consecutively: Tasks open one at a time, starting with the lowest spend level.

• Assign approvers for each spend level by selecting from the dropdown (e.g., Finance Manager, VP of Finance).

• Click Save Group. 

Understanding Spend Levels

Spend levels are thresholds that decide which approvers need to review a request. Think of them as the rules that route tasks based on how much a request is worth. By setting up spend levels, you ensure that approvals align with your organization’s policies, without requiring extra manual work.

How Spend Levels Work

Spend levels define ranges like Over $0, Over $10K, or Over $50K. These ranges are used to assign approvers based on the value of a request. You can configure them for both department and business approvers.

Editing Spend Levels:
You can modify an existing spend level if your organization’s policies or thresholds change.

Example: Change Over $10K to Between $10K and $25K if you need more specific ranges.

Removing Spend Levels:
If a spend level is no longer needed, you can delete it. Deleting a level will remove the assigned approvers for that range, but it won’t affect existing workflows.

Overlapping Spend Levels:
Spend levels can overlap to trigger multiple approvers for higher-value requests.

Example: A $25K request could fall into Over $10K and Over $20K, notifying two approvers.

Gaps in Spend Levels:
If there’s a gap in your spend levels, requests within that range will skip approvals.

Example: If approvals start at Over $5K and no level is defined below that, 

What Happens When Tasks Are Triggered?

When multiple spend levels apply to a request, you can choose how the tasks are handled:

Simultaneous Approvals: All tasks open at the same time, allowing multiple approvers to review requests concurrently.

Example: Both the Manager and VP review the request simultaneously.

Consecutive Approvals: Tasks open one at a time, starting with the lowest spend level. Each task must be completed before the next one begins.

Example: The Manager approves first, then the VP reviews it.

How to Integrate Approvers into Workflows

After setting up spend levels and approvers, you can integrate them into your workflows to automate the approval process. 

• Go to Settings → Purchase Workflow, and select the workflow you’d like to edit (or create a new one) 
• Choose the task in your workflow where you want to assign approvers, and select either Department Approver or Business Approver as the Assignee Type.
• The system will automatically assign approvers based on your department and spend level settings, or based on the business group rules you’ve configured.
• If you select Simultaneous Approvals, all tasks for approvers will open at the same time, allowing multiple approvers to review the request simultaneously. This speeds up the approval process.
• If you choose Consecutive Approvals, tasks will open one by one. The next task will be assigned only after the previous approver completes their task, ensuring a sequential review process.

Best Practices

• Regularly review your spend levels to avoid overlaps unless they are intentional. Clear and well-organized spend levels help prevent unnecessary approval tasks and ensure proper routing.
• Make sure every spend level has an assigned approver, even for low-value requests. If a spend level doesn’t require an approver, leave it blank, but be aware that unassigned levels will skip approval tasks.
• Department approvers are assigned based on the request’s department, while business group approvers apply organization-wide rules. Ensure the correct approver type is used in each task.
• Review and update your approval workflows regularly to reflect any changes in your organization's structure or procurement policies. Keeping workflows flexible ensures they stay relevant over time.

FAQs

Setup and Configuration

Q: What’s the difference between Department and Business Approvers?
A: Department Approvers are tied to specific departments and their spend levels, while Business Approvers oversee organization-wide policies regardless of the department.

Q: What happens if a department lacks approvers?
A: Requests will generate a warning prompting users to assign approvers before proceeding.

Q: Can I configure custom spend levels for each department?
A: No, spend levels are global and apply to all departments. However, unused levels can be left unassigned for departments where they are not relevant.

Q: What happens to existing tasks if the approval matrix is updated?
A: Existing tasks will not be automatically updated. The new rules will apply only to tasks created after the updates.

Q: Can non-admin users access or modify approval configurations?
A: Only Organization Owners can see and update the approval configurations.

Troubleshooting and Limitations

Q: What should customers do if they need to revert changes made to the approval matrix?
A: All changes made to approval settings are final and cannot be reversed. If you made a critical error and need assistance, reach out to support to see if recovery is possible.

Q: What are the limitations on the number of approval levels I can set up? 
A: Up to 10 levels can be added; however, complex configurations may affect the clarity and management of workflows.

Q: What happens if I delete a department?
A: Deleting a department will also remove all assignees from that department. Requests already created will not be affected.

Q: What happens if a change the spend levels for department approvers?
A: Any department spend level changes will cascade to all departments.

Q: What happens if I delete a spend level for department approvers?
A: Deleting a spend level for department approvers will delete the level across all departments, and remove all assignees for that level across departments. Requests already created will not be affected.

Q: What happens if an approval level is not defined for a specific spend threshold? 
A: If no level is defined for a spend range, the workflow will not include a task for Requests in that spend range. This can be intentional - if Requests under $1000 do not require budget approval, then spend approvals can start at $1000+. Requests coming in below $1000 would then not get an approval task.

Q: When can we expect rules to "rerun" if someone updates anticipated spend on the submission?
A: Rules will be re-run when the Request’s budget is updated or when there are form task rules and the submission details are updated.

• A.1: Yes, any future department approvals will recalculate.
• A.2: Yes, any future business approvals will recalculate.
• A.3: Yes, any time the spend is updated, any future dynamic spend approvals will recalculate.
  Note: If the workflow template itself was updated to slot in different tasks and approvals, those new tasks will not be inserted unless the workflow itself is changed or reapplied to the request. The recalculation only takes into account the assignees and how many tasks are triggered in the case of overlapping spend levels.

Q: What happens if a spend level does not have any approvers set up? 
A:If a level does not have approvers assigned in settings, then an unassigned task will be created. Users can either skip the task or assign it.

Q: What happens if I delete a business spend level or a business group?
A: Deleting a business group will also remove all assignees from that group. If any workflow tasks in Workflow Studio are assigned to deleted groups, then those tasks become unassigned and need to be fixed. Deleting a spend level for a business group will remove all approvers assigned to that level but only for that specific business group. Requests already created will not be affected.

Q: What if an org changes its approval set-up? Will live Requests update?
A: No, changes to the approval set-up will not automatically cascade to live Requests; manual intervention is required​​.

Q: What is a spend level gap? Why may I intentionally have a Spend gap?
A: A spend level gap is when a specific value of a set of values are not included in any of the setup levels. Spend gaps can be intentionally set in some cases e.g. if approvals are only needed above $5k. Most other spend gaps are unintentional and can lead to missed approvals.

Q: My departments do not have the same spend levels. How do I set this up?
A: Department approvers all use the same set of spend levels. Spend levels cannot be customized per department today. However, you may be able to use a combination of spend gaps, spend overlap, and unassigned levels to achieve your goals. Reach out to your CSM for assistance.

Functionality 

Q: Do users need to belong to the department to be assigned as an approver?
A: No - any user can be assigned as an approver for any department. A warning is shown in cases of mismatched users and departments, but no action needs to be taken if the setup is correct.

Q: Can multiple approvers be assigned to the same approval level? 
A: Yes, you can configure multiple approvers at the same level, including up to 10 approvers per level.

Q: Can I customize the criteria for different types of approvals, like legal or finance? 
A: Yes, you can specify different spend levels for each business group. Department approvers, however, use the same spend levels.

Q: What is a department approver?
A: Department approvers review & approve requests that originate from their own department. They ensure the requests align with the department’s objectives, budget, and operational needs before they can proceed. Typically these are internal stakeholders belonging to the request’s department.

Q: What is a business group / business approver?
A: Business approvers oversee the process to verify that all necessary standards are met before final approval, regardless of the department. They ensure that requests comply with organizational policies, regulations, and procurement guidelines. Safeguard compliance & mitigate risk across the organization. Examples of these groups include Procurement, Finance, Security/IT, and Legal. 

Q: What if my business approvers differ on an additional piece of logic on top of spend, like region, department, purchase type, etc?
A: Business approvers can be used in conjunction with Form Task Rules. Companies can create more specific groups like East Coast Finance, SaaS Legal, RAPID, Procurement Renewals, Security/IT APAC, etc and then a form task rule can be used on the task in Workflow Studio to determine which approvals should appear when. This allows n organizations to combine this new dynamic spend ability with another variable.

Q: My business approvers also differ based on cost center / department. What should I do?
A: Depending on the complexity of your departments, you can still use this feature by combining business group approvers with form task rules in workflow studio. Reach out to your CSM for assistance.

Q: What is a simultaneous vs consecutive approval?
A: Simultaneous approvals all open at the same time. Consecutive approvals open one after another when each task is completed. This setting only applies when there are overlaps in your spend levels. If a request has an anticipated spend value that belongs to multiple spend levels, a single workflow task assigned to this business group (or department) will result in multiple tasks on the request.

Q: Will department managers be going away with this feature? Can I still use department managers?
A: Department managers will not be removed with this release to allow for a smooth transition to Dynamic Spend Approvals. However, Department Managers will be deprecated in the future after advance warning.

Q: Are simultaneous and consecutive approvals customizable? 
A: Yes, these can be configured at the department and business group level.

Q: What if an org changes its spend on a Request?
A: Tasks will automatically adjust on a live Request based on the organization’s current approval set-up. If the business group, department, or level has been deleted or changed since the Request was submitted, then the Request will reference the new version of approval logic. 

Q: How does this feature handle overlapping criteria (e.g., when spend levels intersect)? 
A: If spend levels overlap, then all applicable levels will have a task inserted onto a Request. E.g. if a Request comes in at $25k and two spend levels are true, then two tasks will be created on the Request. 

Q: What is spend level overlap? How might that lead to multiple approvals?
A: A spend level overlap is when the range of values for a level overlaps with another level’s range of values. This usually happens when the top limit for a level is unlimited e.g. $5k and above.