Delegation of authority defines which people or roles may approve specified decisions, commitments or transactions within stated limits. It turns governance policy into practical approval rights for quoting, contracting, purchasing, payments and exceptions.
What does a delegation define?
- Decision or transaction type
- Authorized role or named delegate
- Financial, risk or duration limit
- Required co-approvals or separation of duties
- Entity, region or business-unit scope
- Effective dates and temporary substitutions
How does it work in a quote process?
A standard quote within an approved discount and margin range may be approved by sales management. A quote with a larger discount, unusual liability or nonstandard payment term can be routed to finance, legal or an executive under the authority matrix.
Delegation vs. workflow routing
Delegation establishes who has authority. Workflow routing sends the record to the relevant reviewer. A system can route a request correctly while still allowing an unauthorized approval if role and limit controls are weak.
What controls prevent misuse?
Use role-based access, current approval limits, conflict checks, dual approval for sensitive actions and immutable decision logs. Expired or departed delegates should be removed promptly.
What should the audit record show?
Retain the submitted terms, calculated approval basis, approver identity, authority in force at the time, comments, decision timestamp and later amendments. Approval should attach to a specific version rather than a changing draft.
