General Information about the Approval Process
Persons in the Approval Process with Access to Invoices Throughout the Process
Defining the First Phase of the Approval Process
Selecting a Person for the Phase
Defining the Final Phase of the Approval Process
Transitions Between Phases
Transitions When Approval Limit is in Use
General approval process
The approval process defines the electronic approval cycle for purchase and travel invoices as automatically as possible. The approval process is a chain of different stages that defines what kinds of stages an invoice goes through, who handles it at each stage, and to which stages it can be moved from the executing stage.
The approval processes to be established must be named differently from each other, for example, Purchase Invoices 2023, Purchase Invoices 2024, Travel Expenses, etc.
The approval process personnel have read access to invoices throughout the entire cycle
Each invoice processor in the approval process can see the invoices and their accounting entries in read mode throughout the entire approval process, provided that the settings define read access for the personnel in the approval process (Settings – General – Access). This setting also automatically adds the read access for viewing archived invoices and accounting entries in the Archive. If the setting is turned off, the basic user will no longer see the invoice in Purchase Invoices once they have processed the invoice and transferred it to the next person.
The approval process reading rights allow that
- The invoice is archived only after the entire approval process has been completed, as the invoice is continually visible to the individuals involved in the invoice approval process.
- Since the archiving of the invoice is done only at the end of the approval process, all historical data of the invoice is also available in the Archive.
- Because the invoice does not need to be archived immediately, it can also be allocated to credit invoices if necessary (an archived invoice can no longer be allocated to a credit invoice).
Definition of the first phase of the approval process
- Click the Settings – Approval process view and press the New button
- The New button creates both the approval processes and the stages of the approval process
- Complete the information in the opened window and finally save by clicking the Save button.
Approval process name
A new approval process must be given a name in the first phase of the process. When you create a completely new approval process and its first phase, click the checkbox in front of the New approval process field. This allows you to write the name of the new approval process in the Approval process name field. The name of the approval process can describe the invoices selected for the process, for example, Purchase Invoices 2015, Travel Invoices, or 'cost unit name'.
Phase name/Phase number
Please also provide a name for the approval process phase (e.g., Opening) as well as the sequence number of the phase. Note that a more flexible numbering of the phases allows for the addition of new phase s to the approval process in a logical order.
EXAMPLE of phase numbering:
Opening – order number 10
Approval – order number 20
Payment – order number 30
A new phase "Audit" is to be added to the example approval process. Thanks to the flexible numbering, the phase can receive a logically ordered number, for example, 15.
Approval process starting/ending phase
Select the starting phase of the process as the initial phase (Yes) and the ending phase as No. The settings – Approval processes - view will show the icon of the starting phase of the process; a green upward arrow.
The invoice is transferred from this stage
If Heeros Accounting is in use and automatic transfers to Heeros Accounting have been enabled in the interfaces settings (Settings - General - Interfaces), it is necessary to specify in the approval process settings from which stages automatic accounting transfers are to be made. We recommend making the transfer at least from the last stage of the approval process. You can read more about automatic transfers and the required settings here.
Should accounting postings be made at this stage?
Also decide whether making accounting entries is allowed in the cycle at this point.
It is possible to move from this phase to the following phases
All phase s of the new approval process must be established first. After establishing the phase s, those phases to which each established phase can move must be selected. Read the detailed instructions at the end of this guide.
Definition of Intermediate Phases in Approval Process
Continue establishing the approval process by creating intermediate phases.
- Click the Settings – Approval Process view again and press the New button
- Fill in the details in the opened window
- Save the specifications with the Save button.
Approval Process Name - To create an intermediate phase, select the process to which you want to add the intermediate phase.
Enter a name for the phase of the process (e.g., Approval, Endorsement) and the phase order number. We recommend numbering the phases in two digits, e.g., 10, 20, 30, etc. If modifications need to be made to the process later, there is enough flexibility in the numbering. Select No. as the starting and ending phase of the process.
The invoice is transferred from this phase - If you are using Heeros Accounting and automatic transfers to Heeros Accounting have been enabled in the connection settings (Settings - General - Interfaces), you need to specify in the approval process settings from which phases the automatic accounting transfers should be made. We recommend making the transfer at least from the last phase of the approval process. You can read more about automatic transfers and the required settings here.
Is editing the travel expense report allowed? – This option allows you to choose whether the travel expense report reviewer/approver can edit the travel expense report. By default, the option is set to No. NOTE! A user with main user rights can always edit the travel expense report in circulation; this setting only affects basic user rights.
Check accounts payable compatibility - In the definition of intermediate stages, you are also asked to address whether an accounts payable compatibility check will be performed. The Yes selection checks the details of the invoice that is at the stage of processing, ensuring that, for example, no accounting entry or any information required by the accounts payable interface is missing. The information check occurs both when transferring from the previous stage to this stage and when moving from this stage to the next.
Should we make accounting entries at this stage - Also decide whether to allow the creation of accounting entries in the process at this stage. The setting applies to all user levels.
Approval limit in use at this stage - Separate approval limits can also be implemented for Purchase Invoices, allowing for example
- invoices of a certain size are required to be approved by two or more people OR
- approval of invoices of a certain size can be limited to specific individuals (Registers – Individuals)
Yes selection activates the approval limit and the limits defined in the individuals documents are valid. The yes selection requires that specifications related to the approval limit are provided.
No selection indicates that the approval limit is not in use, even if limits have been defined in the individuals documents.
Selection of the person for the phase
Assigned person
When you click on the Named Person option, you can select the phase performer from the dropdown menu for that field. Going forward, invoices will be transferred to this stage for the designated person.
Selection from the list
When you click on the Selection from list option, you will have access to the Person List field.
Type the beginning of a person's last name in this field, and a list of names that match your input will appear. Click on the person's name in the listing, and the name will move to the Person List field. Save the information by pressing the Enter key on your keyboard. In the future, invoices will move to this stage, and names of handlers listed in the person list will be offered.
Show on the invoice only persons whose approval limit is sufficient for invoice approval
When you activate this setting (by clicking the checkbox in front of the field), only those individuals who have the authority to approve invoices up to the specified limit will be displayed at this stage of the approval process.
All stages of the new approval process must be established first, and only then can each established stage (normal and conditional transitions) be selected for the stages to which it is possible to transition from each stage. More detailed instructions at the end of this guide.
Definition of the final phase for the approval process
Complete the new approval process by creating the final phase (New button).
Select the approval process you created for the last phase, give the phase a name (e.g. Payment or Payroll) and a sequence number. Choose No as the starting phase and Yes as the ending phase. Finally, save the information by clicking Save and return to complete the information on where to proceed from this phase of the process.
NOTE! If you have enabled automatic transfers from Purchase Invoices to Heeros Accounting, we recommend activating the automatic transfer to the last stage of the workflow. You can read more about automatic transfers and the required settings here.
Transitions Between Stages
Once all the phases of the new approval process have been established, it is necessary to add to each stage of the process where it is possible to transition from that stage. Please note that the invoice provider and bank account details can only be modified in the first stage of the approval process (Opening), so transitioning to the opening stage is also possible in the intermediate stages of the approval process.
If multiple approval processes have been established for Purchase Invoices, you can arrange the view to show only the recently created approval process. Select the approval process to be displayed (drop-down menu) and start sorting by clicking on the magnifying glass (see the image below).
- Select the phase of the approval process by clicking on the name of the phase or
- click the checkbox in front of the row and then click the Edit button
- Finally, save the information by clicking the Save button.
Select the phases to which the transition is allowed for this phase by clicking on the checkboxes in the Transition can be made to the following phases field.
Transitions when approval limit is in use
If there is an approval limit in the approval process, the normal transition phases are used for those invoices that do not require separate approval. When the invoice amount exceeds the specified approval limit, the conditional transition phases are used, whereby the invoice approval is performed by two or more individuals.
Conditional transfers
Transitions, if the invoice amount exceeds – Limit EUR
Enter a euro amount for this approval process phase, from which the invoice approval must be performed by two or more individuals.
Example: the approval limit is €30,000 (Limit EUR)
- When the invoice is €30,000 or less, it can be approved according to the normal approval process stages (normal transition stages).
- When the invoice exceeds €30,000, it must be approved according to the stages of the approval process that exceed the approval limit (conditional transition stages).
Transitions if the person's approval limit is insufficient
If the amount of the invoice exceeds the amount defined in the personal document, the invoice must be approved by two or more individuals.
Example: A person can approve invoices up to €30,000 - The approval limit must be over €30,000 in the Persons document (even €30,001)
- If the invoice is €30,000 or less, the person can approve it according to the normal approval process stages (stages of normal transition).
- If the invoice exceeds €30,000, it must be approved according to the stages of the approval process that exceed the approval limit (stages of conditional transition).
Once the condition is met, the process can move to the following stages
If the aforementioned transition condition is met, select the stages in this approval process to which it can transition. Click on the checkbox next to the stages to which the transition is allowed.
- Save the data at the end with the Save button.
When all phases of the new approval process have been processed, the approval process is ready for use. Note! If there are changes to the established approval process (new phases), the processing of invoices in the process must be completed (the last phase of the approval process) or returned to the opening phase before establishing a new phase.