Definition
Invoice approval is the process a buyer uses to check and authorize a supplier's invoice before it is scheduled for payment. It often involves matching the invoice to a purchase order, confirming delivery, and getting sign-off from the budget owner. Payment terms run during approval, so delays here are a common cause of late payment.
Also called: Invoice approval workflow, AP approval
Invoice approval in practice
Help invoices sail through approval by including the PO number, the name of the person who ordered the work, a clear description of what was delivered, and correct billing details. Ask new clients upfront who approves invoices and what they need to see.
Frequently Asked Questions
How can I find out where my invoice is in approval?
Ask your contact who the approver is, then contact accounts payable with the invoice number. Many larger companies have a supplier portal that shows invoice status.
Do payment terms start before or after approval?
In most contracts, terms run from the invoice date or receipt, not from approval. Some large companies count from approval instead, so confirm which applies before you agree to their terms.
Related terms
- Three-way match A three-way match is an accounts payable control in which a business compares the purchase order, the receiving record, and the supplier's invoice before paying.
- PO number A PO number is the unique identifier on a purchase order that a buyer issues before a sale.
- Accounts payable Accounts payable is the total amount a business owes to its suppliers for goods and services received but not yet paid for.
- Purchase order A purchase order is a document a buyer sends to a supplier to formally request goods or services at agreed prices, quantities, and delivery dates.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.