The Procurement Glossary » Invoice Approval

Invoice Approval

Procure-to-Pay

Definition

The step of authorising a matched (or exception) invoice for payment, per policy and delegation of authority.

Explanation

Cleanly matched invoices may need no manual approval; exceptions and non-PO invoices route to approvers. Well-designed invoice approval keeps control without becoming the bottleneck that causes late payments.

Example

A non-PO utility invoice routes to the office manager for approval before it can be paid.

Related terms

• Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.
• Invoice — A supplier's bill requesting payment for goods or services delivered, itemising what was supplied and the amount due.
• Accounts Payable (AP) — The function and ledger responsible for recording and paying what a business owes its suppliers.
• Delegation of Authority (DOA) — The formal policy defining who can approve spend and up to what value, at each level of an organisation.

Frequently Asked Questions

What is Invoice Approval?

The step of authorising a matched (or exception) invoice for payment, per policy and delegation of authority. Cleanly matched invoices may need no manual approval; exceptions and non-PO invoices route to approvers. Well-designed invoice approval keeps control without becoming the bottleneck that causes late payments.

Can you give an example of Invoice Approval?

A non-PO utility invoice routes to the office manager for approval before it can be paid.

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