Notes from the approval desk.

Most approval policies fail the same way: they are written for the worst invoice and applied to all of them. A €40 courier bill waits for the same signatures as a €40,000 machine.

Start with three bands. Below a small limit, the budget owner alone decides. Above it, a finance manager sees the invoice too. Above a high limit, a director signs. Pick the limits from last year’s invoices: the lowest band should cover most of the count, and the highest band only a handful.

Then add one rule for exceptions: any invoice that does not match its purchase order goes to finance whatever the amount. That single rule catches price drift and double billing better than a lower limit would.

Finally, name a deputy for every approver. An invoice that waits for someone on holiday is the most common reason for a late payment.

A three-way match asks one question of every line: did we order it, did it arrive, and does the invoice charge for exactly that?

The purchase order says what you agreed: quantity and price. The goods receipt says what showed up. The invoice says what the supplier wants to be paid. When all three agree, there is little left to argue about and the invoice can move on.

When they differ, the useful part is the size of the difference. A one-cent rounding gap is not worth a phone call. A delivery charge of €96 against €84 on the order is. Choose a tolerance, for example 2% or €5 a line, and let everything inside it pass.

Write down what happens outside the tolerance, and who talks to the supplier. That is most of the process.

Whether you use software or a spreadsheet, the same seven questions catch most problems.

Is the supplier one you know, with the bank details you already hold? Is the invoice number new for this supplier? Is there a purchase order, and does it name the same goods? Did the goods or the service actually arrive? Do quantity, price and VAT add up? Is the due date one you can meet? Is the person approving the one who owns the cost?

If any answer is “not sure”, the invoice waits and the reason is written on it. A note saying “queried delivery date with supplier” saves the next person ten minutes.