Journal Entry Approval (if applicable)

Journal Entry Approval

Journal entry approval workflows help ensure proper authorization and control over accounting entries in EquiBillBook. This guide explains how approval processes work, how to configure them, and how to manage journal entry approvals.

Understanding Journal Entry Approval

Approval workflows provide:

• Authorization controls for journal entries
• Review process before entries are posted
• Separation of duties between entry creation and approval
• Audit trail of who created and approved entries
• Protection against unauthorized or incorrect entries

When Approval is Required

Approval may be required based on:

• Amount Thresholds: Entries above certain amounts require approval
• Account Types: Specific accounts may require approval
• User Permissions: Users without approval rights need authorization
• Entry Types: Certain types of entries always require approval
• Period Restrictions: Entries in closed periods may need special approval

Approval Workflow Process

The typical approval process:

1. Creation: User creates a journal entry
2. Submission: Entry is submitted for approval (if required)
3. Review: Approver reviews the entry
4. Decision: Approver approves or rejects the entry
5. Posting: Approved entries can be posted to accounts
6. Notification: Creator is notified of approval status

Configuring Approval Settings

To set up approval workflows:

1. Navigate to Settings → Accounts Settings
2. Find Journal Entry Approval section
3. Configure approval rules:
   • Enable Approval: Turn on approval requirement
   • Amount Thresholds: Set minimum amounts requiring approval
   • Approver Roles: Define who can approve entries
   • Account Restrictions: Specify accounts requiring approval
   • Multiple Approvers: Configure if multiple approvals are needed
4. Save the configuration

Creating Entries Requiring Approval

When creating an entry that requires approval:

1. Create the journal entry as usual
2. The system will indicate if approval is required
3. Click "Submit for Approval"
4. Add any required notes or justifications
5. The entry status changes to "Pending Approval"
6. Wait for approver review

Approving Journal Entries

To approve an entry:

1. Navigate to Accounts → Journal Entry
2. Go to "Pending Approval" section
3. Review the entry:
   • Check account selections
   • Verify amounts and calculations
   • Review descriptions and justifications
   • Ensure entry is balanced
4. Make a decision:
   • Approve: Entry can be posted
   • Reject: Entry is returned to creator with comments
   • Request Changes: Send back for modification
5. Add approval comments if required
6. Submit the decision

Rejecting Entries

If an entry is rejected:

• Creator receives notification of rejection
• Rejection reason is provided
• Entry can be modified and resubmitted
• Entry remains in draft status

Multiple Level Approvals

Some organizations require multiple approvals:

• First Level: Department manager or supervisor
• Second Level: Finance manager or controller
• Final Level: CFO or authorized executive

Entries must be approved at each level before posting.

Approval Based on Amount

Amount-based approval thresholds:

• Low Amount: Auto-approved or single approval
• Medium Amount: Requires manager approval
• High Amount: Requires multiple approvals
• Very High Amount: Requires executive approval

Approval Permissions

Approval rights are typically assigned to:

• Accounting managers
• Finance controllers
• CFOs or finance executives
• Authorized supervisors
• Users with specific approval roles

Approval Notifications

Users receive notifications for:

• Entries submitted for approval
• Approval requests assigned to them
• Approval decisions (approved/rejected)
• Entries requiring attention

Approval History and Audit Trail

The system maintains:

• Who created each entry
• When it was submitted for approval
• Who reviewed and approved/rejected it
• Approval comments and justifications
• Timeline of approval process

Best Practices for Approval

• Clear Policies: Establish clear approval policies and thresholds
• Timely Review: Review and approve entries promptly
• Thorough Checking: Verify entries carefully before approval
• Documentation: Add comments explaining approval decisions
• Consistency: Apply approval rules consistently
• Training: Train approvers on what to look for

Bypassing Approval

In some cases, approval may be bypassed:

• Users with full approval rights
• Entries below threshold amounts
• Emergency situations (with proper documentation)
• System-generated entries

Bypass actions are typically logged for audit purposes.

Approval Reports

You can generate reports showing:

• Pending approvals
• Approved entries
• Rejected entries
• Approval turnaround times
• Approver activity

Troubleshooting Approval Issues

If you encounter approval problems:

• Missing Approvals: Check approval configuration and thresholds
• Can't Approve: Verify you have approval permissions
• Stuck in Pending: Check if approver is available or reassign
• Wrong Approver: Review approval workflow configuration

Need Help?

If you need assistance with journal entry approval:

• Review approval settings and configuration
• Verify user permissions and roles
• Check approval thresholds and rules
• Understand your organization's approval policies
• Contact support for help with approval workflows

Journal entry approval is essential for maintaining financial controls and ensuring accurate accounting records. Configure approval workflows that match your organization's needs and ensure proper authorization for all significant accounting entries.