What is Approval Routing

What is Approval Routing and why do we use it?

Approval Routing is a business best practice used for managing approvers in an organization. In this sense Approval Routing is about creating good internal controls. Good internal controls in an organization include authorization of purchases before they occur. The Approval Routing sets a limit on how much an individual can approve for according to their level.

There are three main reasons for using the Approval Routing. The first reason involves limiting approval amounts. The account admin will be able to limit approvers by their levels, and set approvers to departments. This leads to increased security on spending amounts by giving managers a better understanding of an organization’s approval process.

Furthermore, Approval Routing enhances transparency on spending allowing managers to reduce unnecessary spending.