Authorization limits

In this box you add authorization limits, head signers, and authorization limit exceptions.

Authorization limits mean that the user can authorize up to a certain amount. If the user exceeds the authorization limit when the invoice is being approved in the authorization procedures, the invoice will automatically be forwarded to the head signer for authorization. On the invoice you will see the authorization status Approved with exceeded authorization limit.

The authorization limit applies to the total invoice amount excluding VAT.

Type

You can set authorization limits for two types of supplier invoices. Order invoice with purchase order. Expense invoice without purchase order (for example rent or subscription).

Amount up to

The actual authorization limit entered in the company currency. No authorization limit means no limitation of authorization will be applied.

Head signer

A signer who is the current singer's superior manager.

Exceptions

Any exceptions from the authorization limit. The signer can have a higher and lower authorization limit and/or another head signer for example for certain suppliers or supplier groups. The exceptions are registered under the tab Authorization limit exceptions.

4EP (Four eyes principle)

When using authorization limits you can activate the four eyes principle, 4EP, in order to ensure the invoice is always authorized by at least two people.

Example:

The signer called Anna has an authorization limit of 0 EUR, her head signer is Benny. In his turn, Benny has an authorization limit of 5,000 EUR. Benny's head signer is Carl.

If Benny authorizes an invoice (as a regular signer, not as head signer) with a value of 2,000 EUR, the invoice should be sent ahead to Carl if 4EP has been activated for Benny (even though his authorization limit was not exceeded). On the other hand, if Benny (as head signer) authorizes an invoice with a value of 2,000 EUR which Anna has already authorized, the invoice will NOT be sent ahead to Carl, even though 4EP is activated. This is because the four eyes principle has already been fulfilled.