Invoice Approval
Invoice approval is the review and authorisation of a supplier invoice for payment, confirming it is valid, accurate and matches the underlying purchase.
Before an invoice is paid, it is checked against the purchase order and goods received note, and its prices, quantities, tax and totals are verified. An authorised approver then sanctions payment. This step protects the organisation from paying for goods not ordered or received, from duplicate invoices and from pricing errors, and it ensures the correct budget and cost centre are charged.
Approval routing usually follows the same delegation of authority as purchasing, so higher-value invoices need more senior sign-off. Automating the workflow — routing invoices electronically and flagging matching exceptions — speeds approval, shortens payment cycles and captures a clean audit trail. Slow approval, by contrast, risks late payments and missed early-payment discounts.
Key points
- Confirms the invoice is valid, accurate and matches the order and receipt.
- Routed by delegation of authority, with higher values needing senior sign-off.
- Automation speeds cycles and creates a clear audit trail.
Frequently asked questions
- What is invoice approval?
- Invoice approval is the review and authorisation of a supplier invoice for payment, confirming it is valid and accurate and that it matches the related purchase order and goods received.
- Why is invoice approval important?
- It prevents paying for goods not ordered or received, catches duplicates and pricing errors, ensures the right budget is charged, and keeps an audit trail for governance.
Related terms
Invoice
An invoice is a document a supplier issues to a buyer requesting payment for goods or services delivered, listing what is owed and the terms.
Read definitionInvoice Matching
Invoice matching is the process of checking a supplier's invoice against the related purchase order and receipt before approving it for payment.
Read definitionThree-Way Matching
Three-way matching is a control that checks the purchase order, goods received note and supplier invoice agree before an invoice is paid.
Read definitionAccounts Payable (AP)
Accounts payable (AP) is the money an organisation owes its suppliers for goods and services received but not yet paid for, and the team that manages those payments.
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