Setting up Expense Approval Policies

Pemo offers a flexible and customizable way to set up expense approval policies. This feature allows you to define approval workflows based on your organization's needs. With Pemo expense approval policies, you can:

• Route expense approval requests to the right people based on the spending amount

• Keep people in the know with smart notifications

• Quickly review and approve to unblock your team(s) on the go

• Ensure that your company expenses are approved by the right people at the right time

Pemo approval policies cover the following:

• Card expenses review

• Out-of-pocket expenses reimbursement

• New card requests (coming soon)

• Card limit edits (coming soon)

• Invoice payments (coming soon)

How approval policies work

Pemo makes it easy to configure an approval workflow based on expense amounts. This allows you to define the appropriate set of people who need to review or approve expenses based on the amount spent.

Pemo also gives you the possibility to configure multiple approval levels/steps and select the relevant approvers at each level.

Approval workflows are used both to review card expenses made using a Pemo card, and to approve out-of-pocket expenses for reimbursement. Pemo gives you the possibility to set up different policies per expense type (card expense vs. out-of-pocket expense).

The approval (or "review") process applies to the expense. It does not apply to the card transaction. The expense can either be: - A card expense created automatically in the Pemo software when a card transaction is successfully completed through a Pemo card, or - An out-of-pocket expense, added manually into the Pemo software

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How to setup an approval policy

Step 1: Go to the approval policies section in "Settings"

• Open the settings page on Pemo, then click approval policies

• Select the type of expense you want to create or edit an approval policy for, i.e. "Card expenses" or "Pocket expenses"

• Then click "Edit policy" to start designing your approval policy

Step 2: Define your approval policy rules

• Define the rules you need based on expense amounts or levels. The first rule would always start from 0 AED.

• The spend levels rules are meant to define spend brackets where the starting spend level on a given rule ("from") is always the ending spend level of the previous rule ("up to").

• You can define up to 3 rules.

Example:

On the below example, we have defined two rules. Rule 1 applies to expenses between 0 and 500 AED, and Rule 2 applies to expenses above 500 AED.

Step 3: Define approval steps and select approvers within your organization

• Define the number of approval steps needed for each rule. Pemo allows you to have up to 3 approval steps. Please note that you can select the "Auto-approve" mode on any of your rules. (this is your default setup).

• Select the relevant set of people acting as approvers for each approval step. You have the flexibility to choose specific users within your organization or select specific user roles (e.g., Admin, Accountant, etc.) as the designated approvers.

• The approval flow is ready and can progress sequentially from step 1 to step 2, then to step 3 for each expense. This flow ensures a structured and systematic process, allowing you to stay in control of your company spending.

Example:

In the below example, we have configured Rule 1 to follow the "Auto-approve" mode, since the spend amount is relatively small. In Rule 2, we have set two steps of approvals. Step 1 requires any expense above 500 AED to be approved first by an admin or a team lead in your organisation. Once this Step 1 gets completed, the Step 2 approval applies. Step 2 requires this same expense to be approved Nicole Santos. Once this Step 2 gets completed, the expense approval status will be set as "Approved".