Suppose a new employee Mr Akash joins a company as Sales Executive.

He needs to get Visiting Cards Printed

Whom should he ask for approval?

His Sales Department, Accounts Department or Admin Department?


Since he has joined Sales Department as Sales Executive,

He should contact his Manager in Sales Department


Which Manager in Sales Department should he approach

Assistant Manager, Sales Manager Sales, Vice President Sales or Sales Head


In Companies there is Expense Approval Matrix (Purchase Authorization Chart) for Different Department

It contains list of expenses upto which amount can be approved by whom

Higher the amount of expense, higher the level of Manager whose approval required

Example of Expense Approval Matrix (Purchase Authorization Chart)


How should Approval be taken

Oral or Written?

By Email or Writing a Letter or Signing a Form?


Manner of Approval also depends upon Companies Policy

Different types of Approval for Different expenses like

Sign on Travel Expense Report For Travel Expenses
Sign on Material Requisition Form In Case of Production Department in Factories
Sign on Printed Voucher

Used for Small Day to Day expenses like

Pizza for Employees,

Also used in Govt Companies

Email Approval

Used in MNC's


Used for For Services like

Rent/CA Professional Service/Security Guard Service

Note:-Oral Approval should not be taken as there is no proof of the same


Now Suppose Approval has been taken,Who will go for purchasing Visiting Cards

Mr Akash ,his manager or some other person?


There is also policy in Companu about who will undertake the purchase




Production Expenses in Factory

Purchase Department

Routine Office Expenses

Admin Department

Computer and Server

IT Department

Accounting and Tax Softwares

Accounts Department

Small Companies

Purchase by Initiator (Akash in our case)



Now there are Different Vendors in Market. How to select the Vendor for purchasing goods?


In Companies, there is policy to obtain quotations of different vendors

Higher the expense, more the number of quotations required


Expense Upto

Number of Quotations Required

Upto 10000

2 Quotations


3 Quotations


5 Quoations


Now suppose a vendor is Selected, What Document to be issued to him?


A PO (Purchase Order) should be issued by Company to Selected Vendor

It contains

  • Name of Vendor
  • Quantity, Rate and Amount as fixed
  • Payment Terms


Now suppose Vendor sends goods to the Company, Who will receive and check it?


First it will be received by Security Guard Register who will put an Entry in his GOODS ENTRY REGISTER

Next, it will be checked by Some Designated Person


  1. Factory Purchases are checked by Stores Department who after checking stamps/issues a GRN (Goods Receipt Note).GRN Mentions Quantity actually received by Company.It is either in form of
  • Stamp on Invoice/Bill
  • Separate Page printout which is attached to bill


  1. Office Expenses are checked by Admin Department who after checking usually signs on Invoice



Only after this is Invoice received by Accounts Department along with Attached PO/GRN

He performs a number of steps before,during and after passing the entries

Lets study these steps one by one

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.