{"id":2411,"date":"2023-12-14T10:32:00","date_gmt":"2023-12-14T09:32:00","guid":{"rendered":"https:\/\/www.d-velop.com\/blog\/?p=2411"},"modified":"2025-09-18T15:12:50","modified_gmt":"2025-09-18T13:12:50","slug":"sap-invoice-approval","status":"publish","type":"post","link":"https:\/\/www.d-velop.com\/blog\/process-automation\/sap-invoice-approval\/","title":{"rendered":"SAP invoice approval explained in 5 minutes"},"content":{"rendered":"\n
Invoice checking, approval and release, a critical process that every company undertakes.\u202fNothing new so far.\u202fBut why is it crucial to digitise invoice approval – especially if you use SAP?\u202fToday’s blog article explains: Find out how digital SAP invoice approval not only increases efficiency in your company and saves costs, but also contributes to higher compliance and a more sustainable way of working.\u202fHave fun!<\/p>\n\n\n\n
\n
<\/span>Definition of invoice release in SAP<\/span><\/h2>\n\n\n\n
SAP\u202finvoice approval<\/strong>\u202frefers to the process by which invoices are reviewed, approved and released for payment within a company, using SAP software as a tool for this process.<\/p>\n<\/div><\/div>\n\n\n\n
<\/span>SAP invoice approval: A sub-step of a large process<\/span><\/h2>\n\n\n\n
The release of invoices in SAP can be classified into a process chain in the Finance & Controlling department.\u202fParts of this process include invoice receipt, verification and validation, approval workflow, release and payment.<\/p>\n\n\n\n
\n
Invoice receipt<\/strong>:\u202fSuppliers send invoices to the company through various channels for services provided or goods delivered.<\/li>\n\n\n\n
Checking and validation<\/strong>:\u202fThe invoices are entered into the SAP system, where they are checked for accuracy and completeness.\u202fThis can be done automatically or manually by employees.<\/li>\n\n\n\n
Approval workflow<\/strong>:\u202fAfter checking, the invoices must be approved by the relevant responsible persons before they can be forwarded for payment.\u202fHere, predefined rules and hierarchies can be set to ensure that the right people grant approval.<\/li>\n\n\n\n
Release<\/strong>:\u202fThe approved invoices are marked in the SAP system and released for payment.<\/li>\n\n\n\n
Payment<\/strong>:\u202fAfter approval, the invoices are paid.<\/li>\n<\/ol>\n\n\n\n
We will take a closer look at steps 3 and 4 in particular.<\/p>\n\n\n\n
<\/span>Creation of workflow rules for automated invoice approval in SAP<\/span><\/h2>\n\n\n\n
Let’s start with creating defined workflow rules and hierarchies.\u202fTo illustrate this, let’s go through a possible process step by step:<\/p>\n\n\n\n
\n
Assign Approval Request<\/strong>:\u202fFirst, the specific rules for invoice approval need to be set.\u202fDetermine who should receive the approval request based on various criteria such as: invoice amount, cost centre, supplier, or other user-defined factors.<\/li>\n\n\n\n
Configuration in the SAP system<\/strong>:\u202fThe defined rules must be configured in the SAP system.\u202fThis can be done in the invoice approval or workflow management settings.<\/li>\n\n\n\n
Define user roles in the approval process<\/strong>:\u202fUser roles must be defined according to the workflow rules.\u202fThis means that certain users or groups take on certain tasks in the approval process.<\/li>\n\n\n\n
Define workflow trigger criteria & steps<\/strong>:\u202fThe workflow is triggered when a new invoice is entered into the SAP system.\u202fThis can happen automatically when invoice data is imported or transferred from other systems.\u202fThe workflow consists of several steps that determine what to do at each stage of the approval process.\u202fThis could be the automatic checking of invoice data for accuracy and completeness, followed by forwarding to the appropriate approval authorities.<\/li>\n\n\n\n
Set up automatic messages<\/strong>:\u202fIf necessary, notifications can be sent to users to inform them of pending tasks.\u202fEscalation rules can also be defined to ensure tasks are completed on time.<\/li>\n\n\n\n
Creation of reports<\/strong>:\u202fThe workflow status and approval history are recorded in the SAP system.\u202fThis makes it possible to track progress and generate reports on the invoice approval process.<\/li>\n\n\n\n
Payment release & integration into accounting<\/strong>:\u202fAfter successful approval, the approved invoices are released for payment and integrated into accounting.<\/li>\n<\/ul>\n\n\n\n
\n
Note<\/strong>:\u202fIt is important that the exact configuration and integration of workflow rules in SAP\u202fdepends on the\u202fspecific requirements and individual settings of the company<\/strong>.\u202fTherefore, it may be necessary to seek the support of SAP experts or consultants.<\/p>\n<\/div><\/div>\n\n\n\n
<\/span>From theory to practice: This is how the approval workflow works in many companies<\/span><\/h2>\n\n\n\n
After the invoice has been digitally recorded and checked for complete and correct data, the approval workflow starts based on predefined rules and criteria.\u202f<\/p>\n\n\n\n
A correctly defined approval workflow determines which employee approves the received invoice for payment.\u202fApproval requests are automatically sent to the appropriate people or departments – in most companies, who receives which invoice is determined based on the invoice amount and\/or cost centre.<\/p>\n\n\n\n
\n
To illustrate this<\/strong>:\u202fAll invoices from supplier XMZ Ltd with an invoice amount of \u20ac5,000 or more must be approved by Mr Black, Head of Purchasing.\u202fMs. Jones releases everything below the amount.\u202fIf these two are absent, the invoices are automatically sent to Ms. Little for approval.<\/p>\n<\/div><\/div>\n\n\n\n
![\"\"](\"https:\/\/www.d-velop.com\/blog\/wp-content\/uploads\/2023\/12\/SAP-invoice-approval-process.png\")