Vendor Approvals

It is essential for businesses to buy goods from reliable vendors. This helps them manage risk and maintain quality. Adding an approval process for new vendors helps businesses manage vendor relationships better. Approvals in Zoho Books help organizations in this. Once you set up an approval flow, vendors are created in Draft status and must be submitted for approval. Approvers can check the vendor details and only approve vendors who they believe are trusted and reliable. Users can only create transactions for approved vendors.

Note: This feature is a part of the Zoho BillPay add-on for Zoho Books. Purchase the add-on to enable the feature for your organization.

Enable Approvals

To enable Approvals for the Vendors module:

Go to Settings in the top right corner.
Click Customers and Vendors under Preferences.
Click the Vendor Approvals tab.
The default Approval Type will be No Approvals. Select the preferred approval type.

Approval Type	Description
No Approval	Further actions can be performed on vendors without the need for approval.
Simple Approval	Any admin or approver can approve vendors. Further actions can be performed only after the vendor is approved.
Multi-Level Approval	Set up to 10 levels of approval. Further actions can be performed only when all the selected approvers approve the vendor. Click Add New Level to add another level of approver and select the approver.
Custom Approval	Create a custom approval flow for your unique business requirements using multiple criteria. Click New Custom Approval to create a custom approval.

Click Save.

With this, Approvals will be enabled for the Vendors module in Zoho Books. All new vendors added or onboarded will be in the Draft status, and they must be submitted for approval.

Submit Vendors for Approval

After you’ve created vendors, you must submit them for approval. Here’s how:

Go to Purchases on the left sidebar.
Click Vendors.
Click All Vendors at the top and select Draft Vendors.
Click the vendor you want to submit for approval.
Click Submit.

Click Submit to sbmit the vendor for approval

The vendor will be submitted for approval, and any user with approval access can approve them.

Approve a Vendor

To approve vendors in Zoho Books:

Go to Purchases on the left sidebar.
Click Vendors.
Click All Vendors at the top and select Submitted Vendors.
Click the vendor you want to approve.
Click Approve.

Click Yes in the pop-up that appears.

The vendor will be approved, and users in your organization can now create transactions for the purchases made from the vendor.

Reject a Vendor

To reject a vendor:

Go to Purchases on the left sidebar.
Click Vendors.
Click All Vendors at the top and select Submitted Vendors.
Click the vendor you want to reject.
Click Reject.

Enter the reason for rejecting the vendor and click Reject.

The vendor will be rejected, and transactions cannot be created for this vendor.

Resubmit Vendor for Approval

If your approver rejects a vendor due to missing or incorrect details, you can correct these details and resubmit the vendor for approval. Here’s how:

Go to Purchases on the left sidebar.
Click Vendors.
Click All Vendors at the top and select Rejected Vendors.
Click the vendor you want to resubmit for approval.
Click Resubmit.

Click Resubmit to resubmit the vendor for approval

Click Yes in the pop-up that appears. The vendor will be resubmit for approval.

Disable Approvals

To disable approvals for the Vendors module:

Go to Settings in the top right corner.
Click Customers and Vendors under Preferences.
Click the Vendor Approvals tab.
Click No Approval.
Click Save.

Approvals will no longer be required for vendors. Users in your organization can create transactions for vendors as soon as they are added to your organization.

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