An AI approval threshold agent calculates the value that the threshold applies to, whether annual, total contract or cumulative with the vendor, according to how your policy defines it.
A request carries an amount or estimate.
The agent loads the current approval thresholds.
It finds the band the amount falls in.
Related requests and term totals are considered.
A person checks near-threshold cases.
The band sets the approval path.
It compares that value with each band and records which tier applies and the figures it used, so the result is easy to check.
It also looks for requests that sit just under a limit or that appear to be split, and flags them for review rather than deciding.
Thresholds seem simple until you ask what number they apply to, and different readings send the same purchase to different approvers.
Annual, total term and multi-year commitments are mixed up.
A later extension pushes cumulative spend with a vendor over a limit.
A large purchase is divided so each piece sits under a tier boundary.
Amounts in different currencies or with and without tax cross a limit unexpectedly.
A new threshold is announced but not applied consistently.
The agent applies your policy's definition, such as total contract value or annual value.
It sums fees over the term, adds known one-off charges and converts currency where needed.
The figure is matched to the approval tier it falls in.
Recent purchases from the same vendor and team are added up to spot splits or near-limit patterns.
The tier, figures and flags are attached for the approval step.
Bring a small sample and watch Flo work through it.
| Aspect | By hand | With the agent |
|---|---|---|
| Band lookup | Buyers check a table to see which limit applies. | The agent applies the current table to each request. |
| Near-limit cases | Requests just under a limit pass unquestioned. | Near-limit requests are flagged for a closer look. |
| Total cost | Only the first-year amount is compared. | Term and related requests are included in the comparison. |
| Table changes | Old limits stay in use after an update. | The table is versioned and applied from its start date. |
| Reasoning | The band is not explained. | The threshold, amount and basis are stored on the record. |
| If | Then | Who decides |
|---|---|---|
| Amount falls clearly inside a band | Assign the band | None beyond normal approval |
| Amount sits close to a band edge | Assign and flag as near-threshold | Buyer reviews the basis |
| Multi-year contract | Compare total commitment, not only year one | Finance confirms which counts |
| Related requests for one vendor in a short span | Flag the combined value | Buyer judges whether to combine |
| Currency differs from the threshold currency | Show the figure in its currency and mark the rate used | Finance confirms the conversion rule |
| Threshold table is updated | Apply the new table from its effective date | Policy owner confirms the date |
A later change may cross a band. The agent recalculates and flags it, and the buyer decides whether to reapprove.
The final cost is uncertain. The agent uses the stated estimate and notes the risk, and finance decides how to treat it.
Different quotes treat tax differently. The agent notes what is included and the buyer chooses a consistent basis.
A phased purchase could fall in different bands per phase. The agent shows both and the lead decides which rule applies.
Talk it through with the team. We will map it to your steps and show where a person stays in control.
Start with the current threshold table and a single currency.
Compare agent bands with the ones buyers would pick.
Include term totals and related requests.
Review whether requests bunch just under a limit and tell the policy owner.
A cluster of requests just under a limit can indicate splitting or a threshold that no longer fits how people buy. It is a prompt to look, not proof of misuse.
Quick answers to what people ask most about approval threshold.
Book a demoIt is the spend limit that decides which level of approval a purchase needs. An AI agent works out the value that counts, compares it with your limits and shows which tier applies.
No. Leaders set the limits. The agent applies them as written and reports what it found.
It applies your policy's definition, such as total contract value or annual value, and shows the figures it used so a reviewer can check the choice.
It can flag patterns such as several orders to the same vendor from the same team in a short time. A person decides whether they should be treated together.
Approver recommendation is the step of suggesting who should approve a purchase request when the rules do not name one person.
→Multi-level approval is a process in which a purchase must be approved by several people in sequence or in parallel, for example a manager, then finance, then a senior leader.
→Approval escalation is the step that moves an overdue purchase approval to a more senior or alternative approver when the first has not acted.
→Budget owner approval is the step where the person responsible for a cost centre or budget line confirms that a purchase may be charged to it.
→Bring a small sample of real items. We will show what Flo handles on its own and where it hands over to your team.
