Guide
How to Set Up Invoice Approvals
By Keelstar Team · Updated June 1, 2026
The short answer
Define who approves invoices by amount, department, and vendor type; route every invoice through that matrix automatically; and record each approval with an actor and timestamp. Email approvals do not scale and are weak evidence under SOX-style scrutiny.
Start with the approval matrix
Document thresholds: who approves under $5,000, who joins above $25,000, when CFO sign-off is required, and which cost centers map to which managers. The matrix should be written, versioned, and known to AP — not tribal knowledge.
Segregation of duties
The person who approves an invoice should not be the only person who can add the vendor or change bank details. Separation between intake, approval, and payment reduces fraud risk — a core expectation in U.S. internal controls.
Route automatically
Apply the matrix on every invoice so routing is not a manual decision. Exception queues handle out-of-policy items; they should not be the default path.
Keep the trail
Store invoice image or PDF, approval chain, any rejection reason, and payment date together. Auditors ask who approved what and when — not whether someone replied 'OK' on email.
Reduce delays without skipping controls
Escalation rules, delegation during PTO, and mobile-friendly approval for managers cut cycle time. Speed and control are not opposites if the matrix is clear.
Related guides
Put this into a monitored workflow
Invoice Approval handles this continuously — with reminders and an audit trail.