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Price Approval Document

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Price Approval Document

This Price Approval Document ("Approval") is entered into effective as of by and between Client Name: and Supplier Name: .

WHEREAS

WHEREAS, Client desires to procure goods and/or services from Supplier and requires that agreed prices be formally documented and approved for the Term specified below; and

WHEREAS, Supplier represents that the pricing set forth in this Approval is accurate, reflects Supplier's current offer, and will be honored in accordance with the Payment Terms and Term provisions contained herein.

NOW, THEREFORE, in consideration of the mutual covenants contained in this Approval and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Scope of Work

2. Itemized Pricing

The parties agree the following itemized prices are approved for the Scope of Work. Line totals shall be computed by the parties and reflected in invoices.

Item Description
Qty
Unit Price
Line Total

3. Payment Terms

Supplier shall invoice Client in accordance with the Pricing set forth above. Client agrees to pay Supplier the Total Approved Amount in accordance with the schedule below.

4. Term and Termination

This Approval commences on Start Date: and continues until End Date: unless earlier terminated as provided herein.

Either party may terminate this Approval for convenience upon written notice delivered to the other party at least days prior to the intended termination date. Termination for cause shall be effective immediately upon written notice if the non‑terminating party materially breaches its obligations and fails to cure such breach within thirty (30) days after receiving written notice.

5. Confidentiality

Each party agrees that all information exchanged in connection with this Approval that is designated as confidential or that a reasonable person would consider confidential, including pricing, cost structures, technical specifications, and business terms ("Confidential Information"), shall be kept confidential and used only for the purposes of performing under this Approval. Confidential Information shall not be disclosed to third parties except to employees, agents or subcontractors who have a need to know and who are bound by confidentiality obligations at least as protective as those set forth herein. The obligations of confidentiality shall survive termination of this Approval for a period of three (3) years.

6. Price Adjustment; Price Guarantee

Unless expressly stated otherwise in this Approval, the prices set forth herein are fixed for the Term. Any proposed price adjustment by Supplier during the Term requires prior written approval by Client. Client may indicate that prices are fixed for the Term by selecting the checkbox below.

7. Governing Law

This Approval shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

8. Entire Agreement

This Approval, together with any attachments, exhibits, and referenced documents expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, proposals, representations, agreements and understandings, whether written or oral. Any modification to this Approval must be in writing and signed by authorized representatives of both parties.

9. Representations and Certifications

Each party represents and warrants that it has full power and authority to enter into this Approval and that the individual signing on its behalf is authorized to bind the party. Supplier certifies that the prices and quantities set forth in this Approval are true and accurate to the best of Supplier's knowledge as of the Effective Date.

10. Notices

All notices under this Approval must be in writing and delivered to the addresses below or to such other addresses as the parties may designate in writing.

Client Name:

By:

Date:

Supplier Name:

By:

Date:

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What a Price Approval Document Is and when it’s used

A Price Approval Document is an internal business form used to authorize and record pricing for goods or services before contracts are executed or purchase orders are issued. It captures the proposing party, itemized pricing, discounts, assumptions, effective dates, and required signatories, and creates an approval trail for procurement, sales, finance, and audit teams. Typical use cases include one-off pricing exceptions, new vendor quotes, contract renewals, and escalations requiring managerial or committee sign-off. The form supports traceability and internal controls across the procurement lifecycle.

Why a formal Price Approval Document matters

Using a standardized Price Approval Document reduces pricing errors, enforces approval authority, documents rationale for nonstandard pricing, and preserves an auditable record for internal controls and external review. When executed electronically it can comply with the ESIGN Act (15 U.S.C. ch. 96) and state UETA rules when consent and retention requirements are met.

Why a formal Price Approval Document matters

Who completes and signs price approvals

Typical users and approvers are drawn from procurement, finance, sales, and legal depending on vendor and dollar thresholds.

  • Procurement managers and buyers who request, validate, and recommend vendor pricing for purchase orders and contracts.
  • Finance controllers who confirm margin, budgets, and accounting treatment before payment or commitment.
  • Sales managers and pricing committees who approve discounts, promotional allowances, or nonstandard commercial terms.

A clear list of roles on the form helps route the request and prevent approval delays or misrouting.

Essential parts of a professional Price Approval Document

A complete form groups identification, pricing details, rationale, approvals, and audit information so reviewers can verify authority and downstream finance coding without additional follow-up.

Document header

Unique ID, submitting department, project or PO reference, and an effective date to track the request in records and automated workflows.

Itemized pricing

Line-by-line unit price, quantity, discounts, taxes, and total amount presented in a clear table to avoid arithmetic or currency confusion.

Business justification

Concise rationale for the proposed price noting competition, one-time concessions, supplier constraints, or strategic reasons supporting the deviation.

Approval block

Named approvers, role or authority thresholds, date fields, and space for electronic signatures or initials to demonstrate delegated authority.

Conditions

Terms that limit the approval such as validity period, contingency clauses, budget code, required delivery dates, or performance milestones.

Revision history

Version, change log, and timestamps so reviewers can reconcile prior proposals with the final approved price and who made each change.

Required information fields at a glance

Vendor name: Full legal name
Item description: Concise product or service ID
Price amount: Currency and unit price
Quantity: Units or measure
Effective date: MM/DD/YYYY
Approver identity: Name and role

Step-by-step: filling and routing a price approval

Follow these steps to complete the form, route it for approvals, and store the executed copy in the contract repository.

  • 01
    Prepare request: Populate all required fields and attach supporting quotes.
  • 02
    Validate pricing: Confirm math, currency, tax treatment, and budget availability.
  • 03
    Route for approval: Send to designated approvers in role order.
  • 04
    Archive record: Store signed PDF and audit trail in the contract system.

Digital workflow configuration checklist

Configure routing, notifications, and authentication before launching the e-form to ensure consistent processing.

Field Configuration
Approval order Sequential routing by role
Notifications Email and in-app reminders
Authentication Email link with optional SMS code
Storage destination Contract repository or shared drive

Where to send or file an approved price

After approval, the signed form must be distributed to relevant teams and stored in the official contract record.

  • Procurement system: Attach copy to the PO or vendor record.
  • Finance ledger: Send price and budget code to accounts payable.
  • Contract repository: Archive final signed PDF for audit access.
  • Requestor notice: Notify submitter and vendor of approval status.

Technical and integration considerations for e-submission

Confirm file formats, signer authentication, and integration endpoints before using an eSignature workflow.

  • Supported formats: PDF and DOCX are standard for import/export.
  • Authentication: Email links, SMS codes, or stronger ID proofing as needed.
  • Integrations: CRM, ERP, and cloud storage connectors reduce manual steps.

Typical timelines and processing expectations

Set SLAs so approvers know expected response windows and requesters understand when pricing becomes effective.

Internal review SLA:

2 business days for routine approvals

Escalation SLA:

5 business days for committee-level approvals

Price lock period:

Specified validity, often 30–90 days

Renewal notice:

60–90 days before contract renewal

Archiving window:

Final PDF saved within 3 business days

Key milestones in the price approval lifecycle

A sequential milestone view clarifies when responsibilities shift and when approvals convert into actionable commitments.

01

Draft submission

Requestor prepares and uploads the proposal details.

02

Internal review

Procurement and finance review the justification and math.

03

Committee approval

Pricing committee or director authorizes exceptions if required.

04

Execution and archive

Approved price is applied to PO and archived with evidence.

Common mistakes to avoid when preparing price approvals

  • Submitting incomplete backup such as missing supplier quotes or scope details, which forces manual follow-up and delays approvals.
  • Failing to use the correct approval tier or role, creating invalid approvals or requiring costly re-approvals later.
  • Entering prices without currency or correct unit-of-measure, causing invoice reconciliation and payment errors across systems.
  • Not documenting terms or conditions (validity, delivery, payment), which creates disputes and exposure to noncompliance.

Risks and operational consequences of incorrect or missing approvals

Contract invalidity: Unauthorised pricing may be unenforceable
Audit findings: Internal or external audit exceptions
Tax exposure: Incorrect invoicing or withholding
Budget overruns: Unapproved commitments exceed budgets
Payment delays: Accounts payable holds invoices
Supplier disputes: Price disagreements and potential claims

Export, storage, and signed-file formats to require

Ensure the platform and form support common export options and evidentiary artifacts for audits and downstream systems.

PDF/A export

Export a signed, static PDF/A copy for long-term archiving with embedded audit trail and visible signatures for record integrity.

DOCX editable copy

Keep an editable DOCX version if ongoing contract editing is expected; maintain version control to prevent unauthorized changes.

Audit trail

Store a machine-readable audit log capturing timestamps, actor identities, IP addresses, and signature events for compliance.

Cloud archive

Retain executed files in the approved contract repository or cloud storage with access controls and retention policies.

How to update or revise an approved price

Use a controlled amendment process so revisions preserve the original approval history and maintain compliance with approval thresholds.

01

Initiate amendment:

Create a new request referencing the original approval.
02

Document change:

List exact fields and reasons for the modification.
03

Obtain approvals:

Route to the same or higher authority as required.
04

Update contracts:

Attach amendment to PO or contract records.
05

Archive versions:

Save both original and amended signed copies.
06

Notify stakeholders:

Alert procurement, finance, and requestor after execution.

eSignature vendor comparison for Price Approval Document workflows

A neutral comparison of common eSignature vendors on price and a few capability criteria. Verify vendor plan details before purchase.

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 Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes (premium) Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Varies by plan Varies by plan Varies by plan Varies by plan
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Price Approval Documents

Answers to common questions on e-signing, version control, authority, revocation, notarization, and retention to reduce confusion during processing.


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