Bill Approval Process

Bill Approval Process

The bill approval process helps ensure purchase bills are reviewed and authorized before payment, maintaining financial control and preventing unauthorized purchases. This guide explains how the approval workflow works in EquiBillBook.

Understanding Bill Approval

Bill approval is a workflow that:

• Requires bills to be reviewed before finalization
• Ensures proper authorization for payments
• Maintains financial controls
• Prevents unauthorized purchases
• Creates an audit trail

When Approval is Required

Approval may be required based on:

• Bill amount thresholds
• Supplier settings
• User permissions
• Company policies
• Purchase order requirements

Approval Workflow Steps

The typical approval process:

1. Create Bill: User creates purchase bill
2. Save as Draft: Bill is saved in draft status
3. Submit for Approval: Bill is submitted to approver
4. Review: Approver reviews the bill
5. Approve/Reject: Approver approves or rejects
6. Finalize: Approved bill is finalized

Bill Status in Approval Process

Bills go through these statuses:

• Draft: Bill created but not submitted
• Pending Approval: Submitted and awaiting review
• Approved: Approved and ready for payment
• Rejected: Rejected by approver
• Finalized: Approved and finalized

Creating a Bill for Approval

To create a bill that requires approval:

1. Create the purchase bill with all details
2. Add items, quantities, and prices
3. Review all information
4. Click "Save as Draft" or "Submit for Approval"
5. If saved as draft, submit later when ready

Submitting for Approval

When submitting a bill:

• Select the approver (if multiple approvers available)
• Add notes or comments if needed
• Attach supporting documents
• Click "Submit for Approval"
• Bill status changes to "Pending Approval"

Approver Review Process

When reviewing a bill, approvers can:

• View all bill details
• Check items and quantities
• Verify prices and totals
• Review tax calculations
• Check supplier information
• View attached documents
• See approval history

Approving a Bill

To approve a bill:

1. Open the bill from pending approvals
2. Review all details carefully
3. Verify amounts and calculations
4. Check against purchase order (if applicable)
5. Add approval comments if needed
6. Click "Approve"
7. Bill status changes to "Approved"

Rejecting a Bill

To reject a bill:

1. Open the bill from pending approvals
2. Review the issues
3. Add rejection reason/comments
4. Click "Reject"
5. Bill status changes to "Rejected"
6. Creator is notified of rejection

Multi-Level Approval

For higher amounts, multiple approvals may be required:

• Level 1: First approver (e.g., Manager)
• Level 2: Second approver (e.g., Director)
• Level 3: Final approver (e.g., CFO)
• Each level must approve before moving to next
• Any rejection stops the process

Approval Based on Amount

Different approvers for different amounts:

• Up to ₹10,000: Manager approval
• ₹10,001 - ₹50,000: Director approval
Above ₹50,000: CFO approval
• Amounts are configurable in settings

Approval Notifications

Notifications are sent for:

• Bill submitted for approval
• Bill approved
• Bill rejected
• Approval reminder (if pending too long)
• Notifications via email, SMS, or in-app

Approval History

Each bill maintains an approval history showing:

• Who submitted the bill
• When it was submitted
• Who reviewed it
• Approval/rejection decisions
• Comments and notes
• Timestamps for each action

Editing Bills Under Approval

Bills pending approval:

• May be editable by creator (depending on settings)
• May require withdrawal before editing
• Changes may require re-approval
• Approved bills typically cannot be edited

Withdrawing from Approval

If you need to make changes:

• Withdraw the bill from approval
• Make necessary changes
• Resubmit for approval
• Approval history is maintained

Approval Settings

Configure approval in:

• Settings → Purchase Settings: Enable/disable approval
• User Settings: Assign approvers
• Approval Rules: Set amount thresholds
• Workflow Settings: Configure approval levels

Approval Permissions

Users need appropriate permissions:

• Create Bills: Can create and submit bills
• Approve Bills: Can approve/reject bills
• View All Bills: Can view bills for approval
• Edit Bills: Can edit bills (may be restricted)

Best Practices

• Set clear approval thresholds
• Assign appropriate approvers
• Review bills promptly
• Add comments when approving/rejecting
• Maintain approval history
• Set up approval reminders
• Train approvers on the process
• Regularly review approval workflows

Common Approval Scenarios

Scenario 1: Simple Approval

Bill under threshold → Single approver → Quick approval

Scenario 2: Multi-Level Approval

High-value bill → Manager → Director → CFO → Finalized

Scenario 3: Rejection and Resubmission

Bill submitted → Rejected → Edited → Resubmitted → Approved

Troubleshooting

Common approval issues:

• Bill stuck in approval: Check approver availability and notifications
• Can't approve: Verify approval permissions
• Wrong approver: Check approval settings and rules
• Can't edit approved bill: Approved bills may be locked
• Notifications not received: Check notification settings

Approval Reports

Use approval reports to:

• Track pending approvals
• Monitor approval times
• Identify bottlenecks
• Review approval patterns
• Audit approval decisions

Compliance and Audit

• Approval process creates audit trail
• All actions are logged
• Approval history is maintained
• Helps with compliance requirements
• Supports financial audits

The bill approval process is essential for financial control and compliance. Configure it according to your business needs and ensure approvers understand their responsibilities.