What if the vendor name differs from W-9?

Use the vendor legal name exactly as it appears on the W-9 for tax and payment purposes. If the vendor uses a DBA, attach the W-9 showing the DBA mapping and notify procurement to avoid backup withholding.

Can a PAR be signed electronically?

Yes. Electronic signatures that meet ESIGN (15 U.S.C. ch. 96) and UETA standards are legally enforceable in the U.S., provided intent, consent, attribution, and retention requirements are met.

Who can approve high-value requests?

Approval authority should align with your internal delegation of authority policy. For spend above set thresholds, require senior finance or executive signoff to validate budget and contractual obligations.

What attachments are required?

Attach vendor quotes, SOWs, W-9, and any insurance certificates. Missing attachments slow procurement and may block vendor onboarding.

How are changes handled after approval?

Submit an amendment or new PAR referencing the original. Retain prior approvals and document reasons for change to support audit trails.

How long must PARs be retained?

Retain PARs according to applicable standards: IRS minimums (IRC §6501(a)), HIPAA where relevant (45 CFR §164.530(j)), and longer periods required by state law.

Business PAR Template

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Business PAR Template

Parties

Client Name Client Address Contractor / Vendor Name Contractor Address

Recitals

WHEREAS, Client Name: wishes to obtain authorization for a business project or expense described below; and

WHEREAS, Contractor Name: has the capacity and expertise to perform the services or supply the goods necessary for the project titled "" identified by Project Number .

WHEREAS, the parties desire to document the authorization, scope, payment, and other terms governing the services and associated business authorization request (PAR).

PAR Details

Internal Project / PAR Number Budget Code / Cost Center Authorized Amount Expense Type

Capital expenditure Operating expense

Reason for PAR / Business Justification

Scope of Work

The Contractor shall perform the services and deliverables described below in accordance with the specifications, timeline, and acceptance criteria set forth in this PAR.

Detailed Scope of Work

Payment Terms

Total Authorized Amount: $

Payment Schedule / Milestones

Late Payment Fee: on overdue balances until paid in full. All payments are exclusive of applicable taxes unless otherwise stated.

Term and Termination

This authorization commences on and shall terminate on unless earlier terminated in accordance with this section.

Either party may terminate this PAR without cause upon written notice delivered at least days prior to the effective date of termination. Termination for cause, including material breach, may be effected with immediate written notice where the breaching party fails to cure within a commercially reasonable period after receipt of notice.

Termination Procedure / Obligations Upon Termination

Confidentiality

Each party acknowledges that, in the course of performance under this PAR, it may receive Confidential Information of the other party. "Confidential Information" includes all non-public business, technical, financial, and other information marked confidential or that a reasonable person would understand to be confidential. Each party shall: (a) maintain the other's Confidential Information in strict confidence using at least the same degree of care it uses to protect its own confidential information but not less than reasonable care; (b) use such Confidential Information solely to perform obligations under this PAR; and (c) not disclose such Confidential Information to any third party except as required by law. Confidentiality obligations survive termination for a period of years.

Representations and Warranties

Each party represents and warrants that it has the full right, power and authority to enter into and perform its obligations under this PAR, that its performance will comply with applicable laws and regulations, and that it will obtain and maintain all permits, approvals, and insurance required for performance.

Notices

Notice to Client (name and address) Notice to Contractor (name and address)

Governing Law

This PAR shall be governed by and construed in accordance with the laws of the state of without regard to its conflict of law rules. Any dispute arising out of or relating to this PAR shall be resolved in the competent courts of that state.

Entire Agreement

This PAR, together with any attachments, exhibits, schedules, and referenced statements of work, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals, representations, and understandings, whether written or oral. Any amendment must be in writing and signed by authorized representatives of both parties.

Approvals

Approver Name Approver Title Approval Date

Client:

By:

Date:

Contractor:

By:

Date:

What the Business PAR Template Is and When It’s Used

A Business PAR Template (Purchase Authorization Request) standardizes requests to purchase goods or services within a company. It captures requester details, vendor information, estimated cost, account coding, required approvals, and delivery or performance terms. Organizations use PARs to enforce budget controls, create an audit trail for procurements, and ensure consistent review by finance and procurement teams. The template supports both one-time purchases and multi-line requisitions and is commonly integrated with procurement, ERP, or accounts-payable workflows for routing and recordkeeping.

Why a Formal PAR Template Matters for Controls and Auditability

A consistent PAR reduces duplicated approvals, ensures budget checks, and creates a clear audit trail for purchases. It documents authorization, helps avoid unauthorized spending, and streamlines matching for invoice payment and reconciliation.

Who Typically Completes and Reviews a Purchase Authorization Request

Requesters, procurement staff, budget owners, and accounts-payable teams all participate in the PAR lifecycle.

Requesters (employees) complete required fields, justify need, and attach vendor quotes or SOWs.
Budget owners (managers) verify available funds and approve or route for higher-level signoff.
Procurement / Purchasing reviews vendor terms, confirms compliance, and issues purchase orders.

Roles vary by company size; larger organizations use multi-step routing while smaller teams often combine approvals for speed.

Step-by-Step: Completing a Purchase Authorization Request

Follow these sequential steps to submit a PAR correctly and accelerate approval.

01

Prepare Details: Gather vendor quote, scope, and account coding before starting the form.
02

Fill Template: Complete requester fields, descriptions, and the estimated total with supporting attachments.
03

Route for Approval: Assign approvers by role and ensure budget owner signoff is included.
04

Procurement Review: Procurement validates vendor terms, compliance, and issues purchase order if approved.

How Digital Workflow Routing Is Typically Configured

Common workflow settings map PAR stages to approvers, notifications, and escalation rules for timely processing.

Field	Configuration
Approval Order	Requester → Manager → Budget Owner → Procurement
Threshold Rules	Automate extra approvals for amounts above $5,000
Escalation	Escalate to procurement head after 3 days
Notifications	Email and in-app reminders at 24/72 hours

Where PARs Go After Submission

A submitted PAR follows a routing path: approvers review, procurement audits, then AP matches invoices for payment.

Manager Review: Manager confirms business need and budget availability.
Budget Approval: Budget owner confirms cost center and authorizes spend.
Procurement Check: Procurement verifies vendor, terms, and compliance requirements.
Accounts Payable: AP matches the approved PAR to invoices for final payment.

Digital Signing and Integration Requirements

Verify your eSignature platform supports secure signing, audit trails, and the integrations your finance systems require.

eSignature: Tamper-evident audit trail with timestamps and signer attribution.
Integrations: Connectors for ERP/ERP-like systems such as NetSuite or Microsoft 365.
Authentication: Support for email, SMS codes, or advanced signer verification.

Ensure vendor security certifications match your compliance needs and that signed PARs export to PDF/CSV for recordkeeping.

Typical eSignature Pricing and Capability Comparison

Platform pricing and features differ; signNow is listed first for direct comparison across common purchase-approval use cases.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial, no card	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Timing Considerations and Internal Deadlines

Establish internal SLAs for each PAR stage to avoid procurement delays and to meet accounting cutoffs.

Request Submission Deadline:

Submit PARs at least 10 business days before planned purchase

Manager Review SLA:

Manager to respond within 2 business days

Procurement Review SLA:

Procurement action within 5 business days

PO Issuance Target:

Issue purchase order within 3 business days after final approval

Invoice Match Window:

AP should match invoices within 30 days of receipt

Key Processing Milestones for a Standard PAR

Track these numbered milestones to monitor progression and to trigger escalations when a stage is late.

01

1. Request Created

Requester completes PAR and attaches vendor quote.

02

2. Manager Approval

Manager reviews need and certifies budget availability.

03

3. Procurement Review

Procurement checks vendor compliance and issues PO.

04

4. Accounts Payable Match

AP verifies receipt and processes payment.

Security and Compliance Basics for Digitized PARs

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Timestamped actions, IP, and signer attribution

Certifications: SOC 2 Type II and ISO 27001 available

HIPAA Support: HIPAA BAA available where needed

ESIGN / UETA: Meets ESIGN and UETA legal tests

Access Controls: Role-based permissions and SSO options

Common Risks and Consequences of an Incorrect PAR

Unauthorized Spend: Payments without approval create liability

Tax Record Gaps: Incomplete records can trigger IRS penalties

Vendor Setup Errors: Wrong vendor names impede payments

Contract Noncompliance: Missing clauses expose legal risk

Delayed Procurement: Incomplete PARs lengthen cycle time

Audit Findings: Weak controls increase audit exceptions

Frequent Preparation Errors to Avoid

Providing vague descriptions that make matching invoices difficult and lead to reconciliation delays.
Using incorrect cost-center codes that result in misallocated expenses and require journal adjustments.
Failing to attach vendor documentation such as quotes or W-9s, which prolongs vendor validation.
Skipping required approvals or entering approver names without routing, causing invalid or incomplete authorizations.

Frequently Asked Questions About the Business PAR Template

Answers to common questions about completing, approving, and storing a Purchase Authorization Request.

Need help? Contact support

What if the vendor name differs from W-9?
Use the vendor legal name exactly as it appears on the W-9 for tax and payment purposes. If the vendor uses a DBA, attach the W-9 showing the DBA mapping and notify procurement to avoid backup withholding.
Can a PAR be signed electronically?
Yes. Electronic signatures that meet ESIGN (15 U.S.C. ch. 96) and UETA standards are legally enforceable in the U.S., provided intent, consent, attribution, and retention requirements are met.
Who can approve high-value requests?
Approval authority should align with your internal delegation of authority policy. For spend above set thresholds, require senior finance or executive signoff to validate budget and contractual obligations.
What attachments are required?
Attach vendor quotes, SOWs, W-9, and any insurance certificates. Missing attachments slow procurement and may block vendor onboarding.
How are changes handled after approval?
Submit an amendment or new PAR referencing the original. Retain prior approvals and document reasons for change to support audit trails.
How long must PARs be retained?
Retain PARs according to applicable standards: IRS minimums (IRC §6501(a)), HIPAA where relevant (45 CFR §164.530(j)), and longer periods required by state law.

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