Invoice Approval

Definition

Invoice approval is the process of evaluating and authorizing supplier invoices before payment. It begins when the buyer receives the invoice and ends when it is categorized and sent to the appropriate stakeholder for approval.

Understanding Invoice Approval

Invoices must be reviewed and approved before being entered into the ERP or procurement system. Accounts payable software can streamline this by presenting digital invoices for quick review, suggesting coding, and allowing approvals via desktop or mobile devices.

Steps in the Invoice Approval Process

1. Prepare the invoice: Enter all relevant details into the system.
2. Verify or match POs: Link invoices with purchase orders, receipts, or requisitions.
3. Specify exceptions: Correct errors or missing information and resubmit for approval.
4. Route approvals: Send invoices to the appropriate approvers based on purchase details.
5. Manage payment: Approved invoices are sent to the finance department for payment and closed after the money has been received.