Approval workflow

What is an approval workflow?

An approval workflow (also called an invoice workflow) is the fixed digital route that an incoming invoice must follow before it can be posted and paid. It ensures that the relevant employees or managers have verified the expense and that the invoice is correctly coded according to the company's budgets.

How it works

When an invoice is received digitally, it is automatically routed to the person responsible for the purchase. The system can be set up with rules based on amounts, departments, or specific projects. For example, if an invoice exceeds a set threshold, the workflow can automatically require a secondary approval from a finance manager before it is released for payment in the bank.

Benefits of digital flows

A manual process involving physical papers or back-and-forth emails often leads to lost invoices and late payment fees. With a digital workflow, the finance department has a full overview of who is "holding" an invoice and how long the approval process is taking. This increases security against fraud and ensures the company always has control over its liabilities.