Authorization Rule
Overview
Authorization Rule – Business Overview
The Authorization Rule is a setup document in Dafater that defines who is allowed to approve specific business actions, under what conditions, and up to what limits. It ensures that important decisions follow the right approval hierarchy, protecting the business from financial risk, policy violations, or unauthorized actions.
Purpose in Business Operations
The Authorization Rule is used to:
- Control approvals for transactions such as expenses, purchases, payments, loans, or adjustments
- Enforce delegation of authority based on amount, role, or responsibility
- Ensure compliance with internal policies and audit requirements
- Reduce errors and misuse by clearly defining approval boundaries
In simple terms, it answers the question:
“Who can approve what, and up to which limit?”
Prerequisites and Setup Requirements
Before using the Authorization Rule, the following should already be defined in Dafater:
- Business roles and users with clear responsibilities
- Organizational structure such as departments, branches, or cost centers (if applicable)
- Approval limits or thresholds aligned with company policies
- Clear internal approval policies approved by management
This preparation ensures that authorization rules reflect real business authority, not just system access.
Typical Workflow and Business Fit
Define Approval Policies
Management decides approval limits (for example, supervisors approve up to a certain amount, managers above that).Create Authorization Rules
Each Authorization Rule is set up to link:- A specific business transaction type
- An approver or role
- An approval limit or condition
Transaction Creation
When a transaction is entered (such as an expense or request), Dafater checks the applicable Authorization Rule.Approval Enforcement
- If within the approver’s limit, the transaction can proceed
- If it exceeds the limit, it is routed to a higher authority
Audit and Control
All approvals follow predefined rules, creating transparency and accountability.
Key Business Scenarios Where It Is Essential
The Authorization Rule is critical in scenarios such as:
- Expense claims requiring manager or finance approval
- Purchase or procurement approvals with value-based limits
- Loan disbursements or financial adjustments
- Salary changes, incentives, or special payments
- Write-offs, discounts, or exceptional approvals
Any process involving financial or policy impact benefits from clearly defined authorization rules.
Important Considerations for Users
- Authorization Rules should reflect actual decision-making authority, not just job titles
- Approval limits should be reviewed regularly as roles and business size change
- Avoid overlapping or conflicting rules, which can cause confusion or delays
- Keep rules simple and aligned with company policy to ensure smooth operations
- Train approvers so they understand their responsibility and limits
In Summary
The Authorization Rule is a foundational control tool in Dafater. It safeguards the business by ensuring that the right people approve the right actions at the right level—supporting transparency, accountability, and strong governance across all key business processes.
Basic Information
- Module: Setup
- Document Type: Setup
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| transaction | Transaction | Select | ✓ | , Sales Order, Purchase Order, Quotation, Deliv... | Transaction type where authorization limits apply in Dafater. |
| based_on | Based On | Select | ✓ | , Grand Total, Average Discount, Customerwise D... | Criteria used to evaluate authorization, such as totals or discounts. |
| customeroritem | Customer or Item | Select | Customer, Item, Item Group | Specifies whether rule applies to customer, item, or item group. | |
| master_name | Customer / Item / Item Group | Dynamic Link | customeroritem | Selects specific customer, item, or item group for authorization. | |
| company | Company | Link | Company | Company within Dafater where this authorization rule is valid. | |
| value | Authorized Value | Float | - | Maximum authorized value allowed without additional approval. | |
| system_role | Applicable To (Role) | Link | Role | Role authorized to transact within defined limits in Dafater. | |
| to_emp | Applicable To (Employee) | Link | Employee | Employee authorized to transact within defined limits in Dafater. | |
| system_user | Applicable To (User) | Link | User | User account authorized to transact within defined limits in Dafater. | |
| to_designation | Applicable To (Designation) | Link | Designation | Designation authorized to transact within defined limits in Dafater. | |
| approving_role | Approving Role (above authorized value) | Link | Role | Role required to approve transactions exceeding authorized value. | |
| approving_user | Approving User (above authorized value) | Link | User | User required to approve transactions exceeding authorized value. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Company | Links to | Setup |
| Designation | Links to | Setup |
| Employee | Links to | Setup |
| Role | Links to | Core |
| User | Links to | Core |