Accounts Payable
Part of Accounting automation controls
Choosing when a bill needs human approval
Choose human approval triggers for supplier bills using delegated authority, evidence, supplier changes and payment risk.
Route a supplier bill to a person when it falls outside the documented routine path. Amount matters, but so do the supplier, supporting evidence, purchase terms, coding and authority to approve. State whether approval is needed before recording the bill, before payment, or at both stages.
Separate the decisions
Purchase approval authorises a commitment. Bill review checks the supplier’s charge against the order or contract and, where relevant, what was received. Payment authorisation releases money. A system’s “Approve” button may cover only one of these decisions.
An approved purchase order does not prove that a later invoice is accurate. A posted bill does not prove that payment was authorised.
For a routine path, specify which details must agree: supplier identity, order or contract reference, description, amount and evidence of delivery where applicable. Set permitted variations and the person who can decide an exception. A captured invoice image or suggested amount is evidence to inspect, not authority to spend.
Human approval workflow for supplier bills
- Purchase approvalAuthorises commitment; checks against PO or contract
- Bill reviewVerifies invoice accuracy against order, delivery proof, and terms
- Payment authorisationReleases funds only after all checks pass
Route exceptions to the right person
| Bill situation | Proposed route |
|---|---|
| Complete bill within an approved recurring arrangement | Apply the routine review path and retain the contract and bill. |
| Amount or terms differ from the approved order | Ask the purchase owner to resolve the difference before the next controlled stage. |
| New supplier or changed payment details | Verify the details through an independent channel before payment and obtain the required approval. |
| Missing document or unclear delivery | Hold for evidence or a recorded exception. |
| Above delegated authority or involving a conflict | Escalate to an eligible, independent approver. |
These are risk-based routing suggestions, not Australian legal thresholds. Use the business’s own delegations and available staff. For higher-risk payments in a small team, a second check can provide separation when one person performs several steps.
Record who decided, which bill version they reviewed and any reason or condition attached to an exception. If material bill details change after approval, return the revised bill for a new decision. A temporary delegate should have documented authority and an end date.
When a bill requires human approval: Key decision factors
- Amount exceeds delegated authority
- Escalate to eligible, independent approver
- New supplier or changed payment details
- Verify through independent channel; obtain approval
- Mismatch between invoice and approved order
- Purchase owner resolves discrepancy before next stage
- Missing delivery evidence or unclear receipt
- Hold for documentation or recorded exception
- Conflict of interest involved
- Escalate to independent approver
Check the route over time
Inspect whether a rejected bill or changed supplier detail can reach posting or payment through another route. Review approved bills against current delegations and supplier records. When an approval rule changes, identify bills processed under the earlier rule that may need attention. These are controls to operate in the business’s own system; no product behaviour is assumed.
