When a P.O.'s approved funding level has been depleted by invoice payments, a business user will submit a change order to the original requisition. This change order flows through the approval process using the original requisition amount plus the amount of the change. For example, if the original P.O. was approved for $40,000 and a change order was submitted for an additional $25,000, the approval flow will be based on a total spend amount of $65,000, which moves into different approval tier than either the $40k or $25k.
How do others handle approvals with change orders? Do you require approval for the full amount as described above, or only for the amount of change?
Thanks in advance for your responses.