What is an invoice approval workflow?
An invoice approval workflow is the set of rules that sends each supplier invoice to the right people to approve before it can be paid. Routing usually depends on the amount, the department or cost centre, the entity and whether a purchase order exists, with higher amounts needing more senior or additional approvers.
Also calledAP approval workflowinvoice approval process
Compare the softwareBest accounts payable automation software →All 12 accounts payable, receivable and payments vendors →
- Routes by
- Amount, cost centre, entity
- Limits set by
- Delegation of authority
- Category
- AP, AR and payments
How an invoice approval workflow works
Rules are set once in the AP or spend software and applied to every invoice. A typical set: invoices matched to an approved purchase order within tolerance need no further approval; unmatched invoices go to the budget holder for the cost centre; amounts above set limits also go to a finance manager or the CFO. The limits usually come from the company's delegation of authority. Approvers act from email, a mobile app or chat, reminders go out automatically, and invoices can be reassigned when someone is away. Each step is logged with the approver and the time, which gives auditors a record of approval and stops the person who entered an invoice from approving it. BILL, Tipalti, Coupa, Ramp and Payhawk run approval chains of this kind.
Common questions
What is a delegation of authority?+
A board-approved list of who may commit or approve spending and up to what amount. Approval workflows use its limits so that, for example, a department head approves up to one level and the CFO above it.
How many approvers should an invoice have?+
As few as the risk requires. Low-value invoices matched to a purchase order may need none; unmatched or high-value invoices usually need the budget holder and one finance approver. Long chains slow payment without adding much control.
Can approved invoices be paid automatically?+
Yes. Once fully approved, an invoice can join the next scheduled payment run, although most companies still have someone review and release the payment batch.
Software that runs invoice approvals
BILLAP and AR automation with approvals, payments and accounting sync.Profile →
TipaltiGlobal payables with supplier onboarding, tax and mass payouts.Profile →
CoupaEnterprise spend management across procurement, invoicing and payments.Profile →
RampCorporate cards, expenses and bill pay with savings insights.Profile →
PayhawkCards, expenses and multi-currency accounts for global teams.Profile →
MossCorporate cards, invoices and budget controls for Europe.Profile →Part of Accountio’s accounting technology coverage · Glossary
