Payment approval process flowchart
Payment approval process flowchart for payment-proposal preparation, supplier-bank verification, delegated approval, dual bank release, posting and reconciliation.
What the payment approval process is
Payment approval is distinct from invoice approval. Invoice approval establishes that a supplier invoice is valid; payment approval establishes that a prepared population of valid invoices may leave the bank at this time, to these payees, through this payment file. It therefore needs a review of holds, unusual items, payment totals and supplier-bank controls.
The template separates AP preparation, master-data verification, controller approval and treasury or bank release. A bank-detail concern stops the payment rather than being resolved by the person preparing the file. A dual release is a separate confirmation from delegated approval, not a second name on the same spreadsheet.
What this flowchart covers
In this template
- Payment-proposal preparation and review of due dates, holds and unusual items before approval.
- A supplier and bank-detail verification gate with a payment hold and independent confirmation path.
- Delegated approval, dual bank release, bank-exception handling, posting and reconciliation.
When to use this template
- You need a payment-run control distinct from individual invoice approval.
- AP, supplier master data, approvers and bank signatories need a shared description of their roles.
- You are strengthening payment fraud controls after a mispayment, bank-detail concern or audit finding.
How it works
Define the payment population
State which invoices, holds, settlement terms and exceptions are included or excluded before the proposal is reviewed.
Keep verification independent
Use a trusted supplier contact path for bank verification and keep it separate from the person who prepares the payment file.
Set approval and bank roles
Map your delegated authority and bank dual-control rules to roles, then retain the payment-file and bank-release evidence.
Frequently asked questions
What is payment approval?
Payment approval authorises a payment proposal or file after the invoices and payee details have been reviewed. It is a control over cash release, not a substitute for invoice approval.
Why is dual bank release needed?
Dual release requires separate authorised people to release the file at the bank. It provides an additional control after the proposal has been approved and helps prevent a single person from both preparing and releasing cash.
What should happen when supplier bank details cannot be verified?
Place the related payment on hold, verify through an independent trusted contact route, and record or escalate the issue. Do not release the payment because an email or attachment appears plausible.