Skip to content

Free templates · No sign-up

Free approval matrix template

Download a free approval matrix template for Excel or Google Sheets, with a filled example. Set approval limits by amount, name the approver for each department and tier, cover POs, contracts, payments and vendor changes, and use the built-in lookup to see who approves any invoice.

Updated · Aequo editorial team

Download the approval matrix template

The Excel file has two tabs: a blank matrix with editable tier limits and a filled example for a business with seven departments.

Download for ExcelxlsxDownload blank CSVcsvDownload filled examplecsv

Three parts: invoice approval by department and tier, with a who-approves lookup; authority for other spend, vendor and payment actions; and control rules. Opens in Excel, Google Sheets (File, Import), Numbers and LibreOffice.

Example approval matrix by amount and department

Each department's budget owner approves routine spend, the controller takes the middle tier, and the CFO or CEO approves the largest invoices.

DepartmentUp to $1,000$1,001 to $10,000$10,001 to $50,000Over $50,000
OperationsOperations managerHead of operationsControllerCFO
Sales and marketingMarketing managerVP sales and marketingControllerCFO
IT and softwareIT managerHead of ITControllerCFO
FinanceAP managerControllerCFOCEO
Projects / jobsProject managerOperations directorControllerCEO

With this matrix a $7,250 software invoice goes to the head of IT, and a $25,000 one to the controller. Read invoice approval routing for how the same rules are applied automatically.

Printable approval matrix

One page to agree limits with budget owners before you set them up in your systems.

Approval matrix

Tier 1: up to

Tier 2: up to

Tier 3: up to

A. Invoice approval by department

DepartmentTier 1Tier 2Tier 3Tier 4Delegate

B. Other spend, vendor and payment authority

TransactionTier 1Tier 2Tier 3Tier 4
Invoice matched to an approved PO
Invoice without a PO
Purchase order / requisition
Contract or renewal
Capital expenditure
Credit memo or write-off
Employee expense report
Payment run release
New vendor setup
Vendor bank detail change

Approved by

Date

Next review

Approval matrix template from Aequo (free to use and adapt)

How to build an approval matrix

Set amount tiers, assign a role to each department and tier, extend it beyond invoices, write the control rules, then enforce it in your systems.

  1. Set the tiers. Pick three or four amount limits that match how your business spends. Common starting points are $1,000, $10,000 and $50,000.
  2. Name a role for each department and tier. Use roles, not people, so the matrix survives staff changes. Senior roles take the higher tiers.
  3. Cover more than invoices. Add purchase orders, contracts, capital spend, credit memos, expense reports, payment release and vendor changes.
  4. Write down the control rules. No self-approval, approval on the total commitment, separate payment release, and how delegation works when an approver is away.
  5. Publish it and set it up in your systems. Share the matrix with budget owners, then configure the same limits in your accounting or AP software so it is enforced, not just written down.

Control rules every approval matrix needs

Limits only work with rules that stop people going around them.

  • No self-approval: no one approves their own request, purchase or expense report.
  • Total commitment: approve on the full value of a PO or contract; splitting to stay under a limit is not allowed.
  • Separate payment release: the person who releases a payment run does not approve the invoices in it or set up the vendors.
  • Verified vendor changes: bank detail changes are confirmed by calling a known contact before they are entered.
  • Recorded delegation: delegations are time-limited, written down, and never above the delegating approver's own limit.
  • Annual review: review the matrix at least once a year and whenever roles change.

Aequo AP

Turn the matrix into approval routing

Aequo AP routes invoices by amount range, vendor, GL code or department to one or more approval steps, with reminders, escalation and delegation when an approver is away. When no rule covers an invoice, it suggests the approver who handled similar invoices from that vendor, and nothing is assigned until a person confirms.

Live with QuickBooks Online, Xero, FreshBooks and Zoho Books. Oracle NetSuite, Sage Intacct and Microsoft Dynamics 365 Business Central are in early access.

Start free trial Book a walkthrough

Frequently asked questions

What is an approval matrix?

An approval matrix is a table that shows who can approve which transactions up to which amount. Rows are departments or transaction types, columns are amount tiers, and each cell names the approver role. It is the working version of a delegation of authority policy.

What is a delegation of authority matrix?

A delegation of authority (DoA) matrix records the authority a board or owner has handed down to managers: who can commit the company to spending, sign contracts, approve invoices, release payments and change vendor records, and the limit for each. An approval matrix for accounts payable is usually one part of it.

What are the elements of a delegation of authority?

The type of decision or transaction, the role that holds the authority, the monetary limit, any conditions (such as budgeted spend only, or a second signature above a limit), who can act when that person is away, and the date the delegation was approved and is due for review.

What is an example of delegated authority?

A head of IT may approve software invoices up to $10,000 without involving finance. A $7,250 software invoice goes to them; a $25,000 one goes to the controller. The example tab in the template includes a lookup that returns the approver for any amount and department.

How do you set invoice approval limits?

Look at your last 12 months of invoices by amount. Set the first tier so that most routine, low-value invoices need only one approver, and the top tier so only a handful of invoices a year reach the CFO or owner. Then check that each tier's approver can actually judge the spend in it.

Who should approve invoices in a small business?

The person responsible for the budget the spend comes from, with the owner approving anything above a set amount. Even with a small team, keep two rules: no one approves their own purchase, and the person who pays a bill is not the only person who approved it.

Related tools and guides