Invoice Approval

Invoice approval is the straightforward process of reviewing and authorizing invoices from suppliers before making payments. This process typically includes matching invoices with relevant documents.

Typically, the invoice approval process begins when the buyer gets a supplier invoice (by email, post, etc.). The invoice is subsequently classified and delivered to the appropriate stakeholder for approval.

Each company has its own approval structures and processes, known as invoice approval rules. These rules often depend on seniority approval within the company and the invoice amount. Managers may have a higher approval limit than executives, and directors may have an even higher limit.

Additionally, there might be supplier-specific clauses where senior employees need to approve transactions with certain suppliers, while less senior employees can approve larger purchase amounts with whitelisted vendors. These rules can be integrated into accounts payable automation solutions, ensuring invoices are only approved based on pre-defined criteria.