Purpose
This guide explains how to configure and apply cost approval limits per user role in the Control Tower to ensure proper cost governance and approval flow for transport orders (TOs), including consideration of total cost aggregation and currency handling.
1. Overview
The Cost Approval Limit feature allows organizations to define the maximum total extra cost a user within a specific role can approve for an order.
If the total extra cost of an order exceeds this limit, the system will:
Restrict the user from approving the costs, and
2. Configuration in Control Tower Roles
Step 1: Access Role Management
Navigate to Control Tower → Admin -> Right Management -> Control Tower Roles.
Select the role you want to configure (e.g., Dispatcher, Transport Planner, Team Lead, Manager).
Step 2: Define Cost Approval Limit
In the Cost Approval Settings section:
Set the Maximum Approval Limit for the role.
Select the Currency in which the limit applies (e.g., EUR, USD, CNY).
Example:
Role | Approval Limit | Currency |
Dispatcher | 250 | EUR |
Team Lead | 1,000 | EUR |
Manager | Unlimited | EUR |
💡 Best Practice:
Set limits according to internal approval hierarchies and local currency use to prevent unauthorized approvals and ensure financial compliance.
3. Cost Components Considered
The total cost of an order is the sum of all extra cost components (Freight is not considered) associated with it.
Examples include:
Spot Costs: Cost agreed for the transport (e.g., 300 EUR).
Extra Charges: Additional costs like waiting time, tolls, etc. (e.g., 50 EUR).
Surcharges: Automatically calculated or manually added.
Total Cost = Spot Costs + Extra Charges + Surcharges
4. Example Scenario
Scenario
A Transport Order includes:
Spot Costs: 300 EUR
Extra Charge (Waiting Time): 50 EUR
→ Total Cost: 350 EUR
The user’s role: Dispatcher
Approval Limit: 250 EUR (EUR currency)
System Behavior
When the Dispatcher attempts to approve:
The system calculates the total cost (350 EUR).
Compares it with the role’s limit (250 EUR).
Since 350 > 250, the system blocks the approval action.
A message appears
5. Currency Handling
When working with multi-currency environments:
The limit is evaluated in the currency defined for the role.
If the order currency differs, the system automatically converts the total cost using the latest available exchange rate.
Example:
Role limit: 250 EUR
Order currency: USD
System uses exchange rate (1 EUR = 1.10 USD) → 250 EUR = 275 USD limit
If the order’s total cost in USD exceeds 275 USD, approval is restricted.
6. Best Practices
Category | Best Practice |
Role Setup | Define clear role hierarchies and align approval limits with budget responsibility. |
Currency Management | Set limits in a single base currency (e.g., EUR) to avoid confusion; let the system handle conversions. |
Audit log | Having an overview in Billing --> Transport Order costs or Extra cost approval tab to follow up actions |
Audit Trail | Enable approval events to track who approved or rejected costs and when. |
8. Troubleshooting
Issue | Possible Cause | Resolution |
User cannot approve costs | Total exceeds role limit | Escalate to higher-level approver |
Currency mismatch | Role limit currency differs from order currency | Check role configuration or update currency settings |
Approval loop | Missing higher approver role | Add next-level role in hierarchy |