How Do Approvals Work in SAP CPQ?

Approvals in SAP CPQ 

Modern technology allows us to get answers to our questions with the click of a button–so why can’t your company’s approvals function the same way? The good news is that they can! But beware of convoluted quoting systems with rigid controls. These approval processes usually involve costly bottlenecks. Organizations looking to have better control over their Sales Representatives quoting privileges turn to SAP CPQ. 

Approval Types

So what can organizations create approval processes for in SAP CPQ? The answer to that question is–almost anything that has an editable field. Some common examples include:

  1. Discounts
  2. Terms
  3. Expiration Date
  4. Margin 
  5. Total Quote Value

Approval Thresholds 

Give too much privilege, and you lose all control over the bottom line. On the other hand, restrict too much and you end up losing potential sales. Approval thresholds in SAP CPQ force Sales Reps (or other user types) to obey their organization’s approval rules. Therefore, system administrators can decide on the perfect amount of leeway to give their sales reps. 

For example, an admin at a shoe manufacturing company can choose to allow up to a 5% discount on all sneakers. Once the approval rule is in place, if a Sales Rep creates a quotation for sneakers with a 6% discount, they will trigger an approval. However, if the Sales Rep chooses to apply a 4% discount there will be no trigger for an approval and they can proceed with generating the quote for their customer.

Approval Permissions

Who has to abide by these rules? SAP CPQ offers flexibility in terms of who needs to submit for approval (Submitter) and who will approve the violation (Approver). Administrators have the ability to control who needs to submit for approval. Likewise, who they’re submitted to. Administrators can set up approvals to route to multiple or single approvers and dictate whether one or all needs to approve the violation. 

What is the approval submission process?

Sales reps are notified upon the triggering of a condition (or approval rule). The top of their screen displays a pop-up that alerts them of the violation. This approval trigger subsequently puts restrictions on workflow actions. The Sales Rep is unable to proceed with the process without approvals. Once ready, the Sales Rep will use the Request Approval button to launch the submission screen. Next, the Sales Rep will have the opportunity to make their selections for approvers (if enabled) and write a helpful comment or question to the approving party.

The quotation goes into “Awaiting Internal Approval” status as soon as it’s submitted. It will stay that way until the approver makes their decision. The Approver and Submitter can set up Notifications which keep them informed on the status of the quote. After the approval request is received, the Approver reviews the quote violation and proceeds with the approval/rejection. 

Still want more information on Approvals in SAP CPQ? Check out the SAP Help Portal. Alternatively, please feel free to reach out to our team of qualified SAP consultants. We are always happy to help! 

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