Understanding Invoice Approval Rules

Invoice approval rules allow you to automatically route invoices to specific approvers based on customizable conditions. This system helps ensure proper oversight while streamlining the approval workflow.

How Approval Rules Work #

Each approval rule consists of three main components:

1. Conditions – Define when the rule should apply

2. Approvers – Specify who needs to approve

3. Operators – Determine how conditions and approvers are combined

Conditions #

You can set conditions based on:

• Vendor – Match vendor names or keywords
• Amount – Compare invoice totals (greater than, less than, equals)
• Description – Search for specific terms in the invoice description
• Category – Match invoice categories

Multiple conditions can be combined using:

• Match All (AND) – All conditions must be true
• Match Any (OR) – At least one condition must be true

For example, you could create a rule that triggers when:

• Amount is greater than $10,000 ANDVendor contains “AWS” OR “Amazon”

Approvers #

Approvers can be:

• Individual Users – Specific people with system access
• Teams – Groups of users managed through team settings

Multiple approvers can be combined using:

• Require All (AND) – Every listed approver must approve
• Require Any (OR) – Approval from any listed approver is sufficient

Rule Processing #

When an invoice is submitted:

1. The system evaluates all active rules in sequence
2. If a rule’s conditions match, its approvers are notified
3. The invoice remains pending until the required approvals are received
4. Multiple rules can apply to the same invoice

Best Practices #

• Start with broader rules and add more specific ones as needed
• Use descriptive names and descriptions for rules
• Review and update rules periodically
• Test new rules with sample invoices before activating
• Consider using team-based approvals for better coverage during absences

Example Scenarios #

High-Value Purchases

   IF amount > $50,000

   THEN require approval from Finance Director AND Department Head

   IF category contains “Hardware” OR “Software”

   AND amount > $5,000

   THEN require approval from IT Manager OR CTO

   IF vendor contains “Strategic Partner Inc”

   THEN require approval from any Procurement Team member

Managing Rules #

• Rules can be enabled/disabled without deletion
• Rules are evaluated in real-timeChanges to rules don’t affect already-submitted invoices
• Deleted rules are removed from future processing but don’t affect historical data
• By carefully configuring approval rules, you can create an efficient and secure invoice approval process that matches your organization’s needs.