Preventive controls
In one sentenceControls that stop errors or fraud before they happen, such as purchase order approval, passwords and authority limits.
Simply put
Preventive controls close the door in advance: the system does not allow an item to be sold below its cost, or the cashier cannot cancel an invoice without the supervisor's approval.
They are cheaper than fixing an error after it happens, but they are not enough on their own, which is why detective controls complement them.
Example
A store sets its sales system so that it does not accept a discount above 10% unless the supervisor enters his code, which stops unauthorized discounts before they happen.
Don't confuse it with
Detective controlsPreventive controls stop the error before it happens, and detective controls find it after it happens.
in FullScreen ERP
Credit sales with a credit limit for each customer and an alert when it is exceeded. Sales and POS