Invoice Approval Configuration Options

Summary

Companies often follow an invoice approval process prior to authorizing invoices for payment. Within MineralTree, companies have the ability to configure invoice approval routing rules according to internal requirements. Rules can be configured both by dollar amount and invoice attributes*. Common workflow examples are defined at the end of this document. Use these as a guide when designing workflows for your company, and contact MTSupport@mineraltree.com if you have any questions.

*Specific invoice attributes vary by accounting software

Invoice Approval Rule Setup and Examples

Customer Administration Application - Global rules

Six settings govern invoice approval behavior within MineralTree. Customers decide whether

  • Invoice approval is required prior to payment
  • To set tiered approval rules based on dollar thresholds
  • The invoice approval status changes to “approved” when all approvers have approved, or when at least one approver on the request has approved
  • Invoice approvers have the ability to create and edit invoice data
  • Invoice approvers have the ability to access approval requests without logging in
  • (NetSuite only) Invoice approval rules are bypassed or followed when an invoice is associated with a purchase order

Tiered Approval – examples

At the global level, companies set invoice approval thresholds that determine how many approvals an invoice needs based on the dollar amount. By default, companies are configured for one level of approval. Up to four levels of approval can be added, and users can specify the dollar thresholds at which each subsequent level is triggered. The dollar threshold for each approval level must be greater than or equal to the previous level. When an invoice requires more than one level of approval, invoice requests are sent sequentially, so that invoice approval requests are not sent to second level approvers until the first level approvers have reviewed and approved.

Ex. 1

Invoice Approval Tier Rule

1 approval for invoices > $0, 2 approvals for invoices > $500

 

Ex. 2

Invoice Approval Tier Rule

1 approval for invoices > $0

2 approvals for invoices > $500

 

Approval Status – examples

Companies have the ability to specify the criteria by which an invoice is to be marked approved. By default, the invoice approval status is considered “approved” when at least one of the approvers assigned to an invoice has approved it. Companies can change this setting so that an invoice is considered approved only when all approvers assigned to the invoice have reviewed and approved it. Note, this “at least one” versus “all” rule applies within the context of any tiered approval rules that have been configured.

 

Ex. 3: 1 approval tier, approval by one

 

Ex. 4: 1 approval tier, approval by all

 

                     

Ex. 5: 2 approval tiers, approval by one   

Ex. 6: 2 approval tiers, approval by all

Accounting Manager, Company Profile – Assigning default approvers

After global rules have been set in the Customer Administration Application, users assign default approvers to different routing attributes within the Company Profile on the Invoice Approval Rule tab. For each rule, users define 1) how many tiers of approval are required 2) the dollar thresholds for these tiers 3) the name(s) of the approvers in each tier.

Ex. 7

As invoices come into MineralTree, either via sync from accounting systems or through invoice capture, invoice approvers are assigned to the invoice based on routing rules. If more than one rule applies, the precedence rule determines which attributes are used for routing. On any invoice, accounting managers have the ability to edit the invoice approvers or override rules for specific invoices as needed.

Invoice Approvers submitting documents

When users with an Invoice Approver role submit documents to MineralTree, companies have the option to enable or disable automatic invoice approval requests to the sender once the data capture process is complete. By default, this invoice approval request is disabled. Contact MineralTree Support to enable this request.

Ex. 8 Automatic Invoice Approval enabled for Invoice Approver senders

 

Attributes and Precedence Rules by Accounting System

Where multiple attributes are supported, the precedence determines which attribute rule is followed when more than one applies to an invoice. For example, when both a Location and a Class rule are defined for an invoice in Intacct, the Location rule will be used because that is higher in the precedence. The table below defines the attributes available for invoice approval routing for each accounting system.

 

Intacct

Microsoft Dynamics GP

NetSuite

QuickBooks Desktop

QuickBooks Online

1.

Location

Vendor

Location

Vendor

Vendor

2.

Vendor

 

Department

Class

Class

3.

Department

 

Class

 

 

4.

Class

 

Vendor

 

 

5.

Employee

 

 

 

 

6.

Project

 

 

 

 

7.

Item

 

 

 

 

8.

Customer

 

 

 

 

Ex. 9

Two rules set at the company level (Location: Boston and Department: Sales) are relevant to an invoice. Precedence ranking assigns the Location: Boston rule to the invoice.

Common Configurations - Scenario 1

Invoice Approval Required, no automatic approval requests

In this setup, a company requires that all invoices must be approved before they can be paid. Default invoice approvers have not been established, and the invoice approvers are assigned by the Accounting Manager to each invoice before they are paid.





Common Configurations - Scenario 2

Invoice Approval required. Invoice Approvers assigned based on vendor. Multi-level approvals required for high dollar invoices.

In this setup, all invoices require approval, and high dollar invoices require two approvals. The specific approvers are assigned based on vendor name. Rules are configured within the Accounting Manager application, and are automatically assigned to invoices as they are created.


 

Common Configurations - Scenario 3

Invoice Approval required. Multi-step approval process: first approval occurs at the location; second approval occurs in centralized AP department.

 

Common Configurations - Scenario 4

Invoice Approvers in distributed locations receive vendor invoices and code and approve invoices once the data has been captured.

In this setup, a company requires that all invoices must be approved before they can be paid. Default invoice approvers have not been established, and the invoice approvers are assigned automatically once invoice capture is complete. *Contact MineralTree Support to enable this workflow.

Common Configurations - Scenario 5

Invoice Approval rules need to be overridden for a specific invoice.


 

 

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