Q: What is the best process to enforce approval levels for invoice payment?

A: Delegation of authority controls allow AP departments to confirm an invoice approver has the necessary authority to approve payment of invoices. Best practice is to establish standard delegation levels across job titles so that a manager level in one department has the same authority level as a manger level in another department. Exceptions to the standard delegation approval levels can exist for specific purchases but should be limited to ensure proper controls.

Enforcement of delegation of authority policies provides the most control when the policy is enforced at approval time rather than once the invoice is sent to Accounts Payable. This enforcement is best handled through an electronic AP workflow solution where the system prevents invoices from being sent to Accounts Payable without the proper authority level approving the invoice. This reduces the burden on the Accounts Payable staff to need to focus on manually verifying approval levels and allows the staff to focus on more value-added activities.

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