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How do you set up a purchase order approval workflow in Business Central, including for AI-drafted POs?
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To require approval of purchase orders in Business Central, set up approval users and their approvers, create a workflow from the Purchase Order Approval Workflow template, and enable it. Buyers then choose Send Approval Request, the order sits in Pending Approval, and it becomes Released only when the approver approves it.
These steps follow Microsoft Learn documentation for Dynamics 365 Business Central online as published on 2026-10-01. Your partner may have customized workflows, so check existing workflows before adding a new one.
What does a purchase order approval workflow do?
An approval workflow stops a purchase order from moving to the next stage until a named approver says yes. While it waits, the order's Status is Pending Approval; after approval it changes to Released.
The status matters beyond approval. Microsoft notes that while a purchase order is Open, the warehouse does not expect to receive its items; releasing the order tells the warehouse the order is complete. A Released order can't have its item lines changed until someone reopens it, and reopening means it must be released again.
How do you set up the workflow?
Setup takes three parts: approval users, notifications, and the workflow itself. Microsoft's walkthrough uses a buyer and an approver; the same steps scale to a team.
- Search for Approval User Setup. Add the approver first, because a user's approver must already exist. Give the approver purchase approval rights, either unlimited or up to an amount limit.
- Add each buyer and set the approver in the Approver ID field.
- On the approver's line, choose Notification Setup. Set Notification Type to Approval and pick a method: an internal note or email. Use Notification Schedule to choose when they are notified, for example instantly.
- Search for Workflows, choose New Workflow from Template, and select Purchase Order Approval Workflow. Business Central creates a copy with a code ending in -01.
- Review the event conditions and approver settings, then turn on the Enabled toggle.
To test it, sign in as the buyer, open a purchase order, and choose Request Approval, then Send Approval Request. The status changes to Pending Approval. The approver opens Requests to Approve from the Role Center, selects the request and chooses Approve, and the purchase order's status changes to Released.
Can you require approval before purchase orders are even created?
Yes, since April 1, 2026. Microsoft's 2026 release wave 1 added approval workflows for requisition and planning worksheet batches, generally available on that date. A buyer sends the whole worksheet batch for approval before carrying out the lines into purchase orders.
While a batch approval is pending, nobody can insert, change or delete its lines, so the plan being approved is the plan that gets ordered. To set it up, open Workflows, choose the Requisition Worksheet Batch Approval Workflow template, set the template and batch in the event conditions, configure approvers and enable it. Then use Send for approval on the worksheet.
The verdict: approve at the worksheet when you want one sign-off on the week's buying plan, and approve each purchase order when amounts or vendors need individual control. Many teams use both.
Which approval option fits your team?
Choose by where you want the human check to sit. Approving each PO gives the finest control; approving the worksheet batch gives one review of the whole buying plan.
| Option | What gets approved | Good fit |
|---|---|---|
| Purchase Order Approval Workflow | Each purchase order, with amount limits per approver | Spend control, new vendors, large orders |
| Requisition Worksheet Batch Approval Workflow | The batch of suggested lines before orders are created | Weekly reorder runs reviewed by a manager |
| Power Automate flow | Whatever the flow defines, using Business Central events | Scenarios the built-in templates don't cover |
How should approvals work when AI drafts the purchase orders?
Treat an AI-drafted purchase order like one drafted by a new buyer: useful, but checked. The approval workflow you already run is the right control, as long as the AI tool creates orders in a state your workflow can catch.
Questions to answer for any tool that creates purchase orders in Business Central:
- What status does the order arrive in? Your workflow triggers when a user sends an Open order for approval. Confirm an outside tool does not create orders already Released.
- Who is the order's author? Approval routing follows the user who sends the request, so decide which user sends AI-drafted orders.
- Does anything go to the vendor automatically? It shouldn't. Sending to the vendor should stay a human step after approval.
- Can you trace why each line was ordered? The approver needs the reasoning, not just the quantities.
- Is posting gated? Microsoft notes that posting an Open order releases it automatically, so make sure nobody posts a receipt or invoice against an unapproved order.
Where does ReorderOwl fit with approvals?
ReorderOwl is a purchasing agent you use in ChatGPT. It reads sales history, stock on hand, open purchase orders, vendors and lead times from Business Central, recommends what to order with an Excel workbook that explains every line, and drafts the purchase order. The order is saved in Business Central only after you confirm it, and nothing goes to a vendor until someone on your team sends it. The workbook gives your approver the reason behind each quantity.
The Business Central connection is built and tested against Business Central test systems, and we connect it to yours with you during setup. Bring your approval workflow to the demo so we can walk through how confirmed orders meet it. See ReorderOwl for Business Central and the purchasing agent in ChatGPT. For what Microsoft's own agents do, read Does Business Central Copilot automate purchasing?
Frequently asked questions
What does Pending Approval mean on a Business Central purchase order?
The order has been sent for approval and is waiting for the approver. After approval, the status changes to Released.
Can I set amount limits for purchase approvals?
Yes. On the Approval User Setup page you can give approvers amount limits for the purchase records they may approve, or unlimited purchase approval.
Can I approve the requisition worksheet instead of every purchase order?
Yes. Since April 1, 2026, the Requisition Worksheet Batch Approval Workflow lets you approve a worksheet batch before its lines become purchase orders.
How do I change a released purchase order?
Reopen it, make the change, and release it again. If your purchase order approval workflow is enabled, check whether its conditions require approval again before release.
Does ReorderOwl send purchase orders to vendors?
No. ReorderOwl saves a purchase order in Business Central only after you confirm it. Nothing goes to a vendor until someone on your team sends it.
Sources
- Set up and use a purchase approval workflow, Microsoft Learn, accessed 2026-10-01
- Status field on documents, Microsoft Learn, accessed 2026-10-01
- Approve requisition worksheets and item journals, Microsoft Learn (2026 release wave 1 plan), accessed 2026-10-01
- New and planned features for Dynamics 365 Business Central, 2026 release wave 1, Microsoft Learn, accessed 2026-10-01