Introduction

Automate quote discount approvals by configuring rules and approvers.  

The process in which a manager approves the discount given by a salesperson before the quote is sent to customer is referred to as Quote Discount Approvals process or in short Quote Approvals process.

Why is approval required for a Quote?

Business managers want to set limits on maximum discounts a sales person can give to customers. But, sales persons might come across opportunities where a higher discount is warranted. If a discount is more than the allowed limit, it is necessary for the sales rep to get approval by managers.

Without an automated process, getting approvals from managers can be a time consuming process, with the need to send details over email, or by phone. Often, multiple product line managers will need to approve discounts if a Quote has multiple products. This will further complicate the process, and delay the sale.

How does Vtiger help automate Approvals process

Vtiger enables administrators to set the entry criteria and rules for Approvals. The fully configurable rules enable controls for specific user profiles (Sales manager can give 12%, Sales person can give up-to 7% discount), on specific items or regions. Up to 3 levels of approvers can be configured for each rule.

When a Quote is created, Vtiger automatically runs through these rules, and if the Quote matches the rule, it immediately notifies the 1st level approver by email and by in product alert (in web client and Vtiger 360 mobile app). Approver can view details and click to approve. After 1st level approver has approved, Vtiger notifies 2nd level approver.

By using this automated process, you can help your sales team close opportunities faster. Vtiger also helps improve compliance to the business rules, by blocking sales persons from sending Quotes to clients until they are approved.

Prerequisites to create Quote Approval process

Before creating Discount Approval process, you should have the following information

Which Quotes need to go through approval process?

Any Quote that matches the Approval Entry Criteria i.e., an unique field criteria needs to go through the approval process.
For example, the entry criteria for an approval process could be Quote Billing Country is India. Any Quote which matches this criteria will proceed with the Approval process.

What are the discount limits for different profiles of users?

As an administrator, you can set up upto 5 rules with different discount limits for specific user profile with an approval process. The discount limit could be on each line item or on overall item total.

For example, Any Quote record matching the above mentioned entry criteria, proceeds to execute the following rules:

Rule 1: If Product Name = Grasspods Home Theater && Item.Discount. Price > 5% and the Owner Profile is Sales - India, send the record for approval from Regional Sales Manager.

Rule 2: If Product Name = Grasspods Home Theater && Item.Discount. Price > 10% and the Owner Profile is Sales - India, send the record for approval from Regional Sales Manager and Product Manager.

Who are the approvers?

An approver of the record can be

• Level 1 manager (Direct Reporting Manager of the Record Assignee)
• Level 2 manager
• Level 3 manager
• Any specific user such as Accounts manager, HR Manager, Product Manager, VP of Sales

What should be done after the Quote is approved?

Set actions to trigger if a Quote is approved by all approvers, such as :

• Send an email to submitter with further updates
• Update the Quote Stage = Reviewed.

What should be done in case Quote is rejected?

Set actions to trigger if a Quote is rejected by any one of the approver in the Approval process. The actions could be:

• Send an email to submitter with rejection reason or specific changes in the Quote record
• Update the Quote Stage = Rejected.

Create Quote Approval Process

Now that we’ve seen the basic outline of an approval process, let’s create a Quote Discount Approvals for USA region on “Grasspods Home Theatre” product.

To create a new approval process, go to Menu > Settings > Automation > Approvals

To set up approvals process, follow these steps:

Step 1: Provide basic Information

Select the Quotes module from dropdown and provide an unique name for an approval with a short description

Step 2: Entry criteria

Set the enrty criteria as “Quote Billing Country is USA”

Step 3: Rules

1. Rule Name - Provide an unique name for the rule and set the criteria. If the mentioned criteria are met, the rule is executed.
   For example, The rule for this approval process is Product Name = Grasspods Home Theater && Item Discount Price > 5%
   

2. Owner profiles - Select profiles from a drop down. Rule is executed only if record owner profile matches with the rules configuration. For example, Sales profile - USA

3. Approval matrix - Choose the approvers for the rule. You can configure up to 3 levels of approvers for a single rule. By default, Vtiger approval process provides an Email Template which notifies an approver about the item discount. You can create or customize the approval email template.
   For example, If the entry criteria and rule is met, get the record approved from Reporting Manager i.e., Level 1 manager

   

Let us set up, another Rule with different discount limit :

• Rule Conditions = Product Name = Grasspods Home Theater && Item Discount Price > 10%
• Owner profiles = Sales profile - USA
• Approvers are Reporting Manager i.e., Level 1 manager and Product Manager i.e., Level 2 Manager

Step 4: Final Approval action

Select the final action to be executed on approval of the record. For example,

1. Send an email alert to the submitter notifying the discount request
2. Update the Quote Stage to Reviewed

Step 5: Final Rejection action

Select the final action to be executed on rejection of the record. For example,

1. Send an email alert to the submitter notifying the rejection reason

2. Update the Quote Stage to Rejected

   

Lastly, save the Approval process.

Now, when a discounted Quote record is saved, it checks for automated approval process. If the record matches any entry criteria, it proceeds to execute all the rules sequentially with approval request sent to each approver defined in the rule’s approval matrix.

At this moment, the record is locked and the Approval Status is set to Waiting for approval. The record remains in locked state until the record is approved by all approvers or rejected by any one of the approver.

An approver is notified about a record waiting for his/her approval via Email and Desktop notification. Approver can also view records, mark them as approver or reject and add notes right from Approvals module.

If any one of the approver rejects the record requested for approval, final rejection actions are run. Otherwise, next rule is processed for approvals. When there are no more rules to execute, the record is approved, and final approval actions are run and the record is unlocked.

For more information on Approvals, click here.