What it does
Automatically routes Xero purchase orders to appropriate approvers based on amount thresholds and department budgets, tracking approval status and preventing unauthorised spending.
Why I recommend it
Manual PO approval creates delays and lacks audit trails. Automated routing ensures purchases are reviewed by the right people at the right level, speeding approvals while maintaining financial controls.
Expected benefits
- Faster PO approvals (hours vs days)
- Clear approval audit trail
- Prevented unauthorised spending
- Reduced finance team workload
How it works
PO created in Xero -> check amount and department -> route to appropriate approver based on rules (<$1K to manager, $1-10K to director, >$10K to CFO) -> send approval request -> track response -> update PO status -> notify requester.
Quick start
Document your current approval thresholds manually. For the next month, manually route POs to approvers via email and track approval times. Identify bottlenecks, then automate the routing logic.
Level-up version
Include budget remaining in approval request (is department over budget?). Escalate if no response in 24 hours. Allow mobile approvals. Block POs from vendors without contracts. Auto-approve recurring purchases below threshold. Generate spending reports by approver.
Tools you can use
Accounting: Xero
Workflow: Zapier, Make, n8n
Approvals: Google Forms, Slack, email
Notifications: SMS, Slack, email
Also works with
Accounting: QuickBooks, NetSuite, Sage Intacct
Procurement: Coupa, Procurify, Tipalti
Project management: ClickUp for project-based approvals
Technical implementation solution
- No-code: Xero PO created webhook -> Zapier checks amount -> routes email/Slack approval request to appropriate approver based on rules -> manual approval updates Xero.
- API-based: Xero webhook on PO creation -> fetch PO details + department budget -> apply approval logic -> send request via Slack with approve/reject buttons -> response updates PO status via Xero API -> notify stakeholders.
Where it gets tricky
Handling POs that span multiple budgets or departments, managing approval delegation when people are out, ensuring urgent purchases can bypass for emergencies, and maintaining approval rules as org grows.
