Overview: Accounts Payable Approvals

Your credit union can elect to set your vendor payments to require approval before they can be paid. Below is now you do so "In a Nutshell."

Additional Resources

Overview

For credit union shops with large accounting teams that juggle payments for multiple branches, accounts payable approvals let you activate optional controls so that invoices must be approved by authorized employees before they can be selected for payment.  With this feature, you can define a list of authorized approvers, specify the maximum dollar amount they can approve, and even assign approvers to specific vendors.  

Approvers can be assigned automatically whenever a new invoice is created with a default approver assigned to that vendor, or later you can assign an invoice to someone on your list of approvers.  Approvers will receive an email reminder when an invoice is ready for approval, and you can even nudge them again by email if you are still waiting for an approval to be logged.

Once invoices are approved, you’ll pay the invoices the same process as before, with the main difference being that only approved invoices can be selected for payment.  Payments are made using the same process as before, via check or ACH according to your vendor configuration.  

Operations Side of CU*BASE  and Setup

In order to activate this feature "A2A/AP Payments" in the CU Master Profile configuration in the Operations Edition of CU*BASE must be an M for Magic Wrighter.  Additionally, you must have an ODFI relationship with Magic Wrighter.  Contact a CSR for assistance to become an ODFI.

Do the Account to Account (A2A) limits entered in CU*BASE also apply to Accounts Payable payments made via ACH? 

Define a List of Approvers

Once the feature is activated on the A/P Workflow Controls, use Enter to move to define a list of authorized approvers, specify the maximum dollar amount they can approve and limit which vendor's invoices they can approve.  

Assign Default Approvers

Approvers can be assigned automatically whenever a new invoice is created by setting up default approvers in the Vendor Configuration.  Or you can use Tool #1910 Organize AP Invoices for Processing after the invoice is created to assign an invoice to someone on your list of approvers.  Learn more.

Assigning Approvers When Organizing Payments

If approval are activated on the A/P Workflow Controls, the Organize Invoices for Payment and Approval screen will have "and Approval" in the title. It will additional approval options that allow you to assign invoices for approval and to send notification to approvers alerting them that they are assigned.  It will also have additional columns that document where the invoice is in the approval process.

Either a default approver will appear in the "Appr" column or you will need to assign an approver to approve the invoice.  Adding default approvers that do not require assigning is configured in the Vendor configuration screen.

If approvals are required, assign an approver to the invoice by selecting the invoice and then "Assign approver." You will be sent to the approvals screen allowing you to select the Employee ID to which the invoice will be assigned for approval. (Only employee IDs configured to be approvers in the A/P Workflow Controls to be allowed to approve invoices will appear. 

Notifications to Approvers

If notifications are activated in the A/P Workflow Controls, once the invoice is assigned to an approver, an email notification will be sent to the them notifying them they have an invoice to approve.  You can even nudge them again by email if you are still waiting for an approval to be logged by selecting the invoice and "Send reminder to approver."  These email notifcations are sent in batch when you leave this screen by selecting Save/Prepare to Pay.  If multiple invoices are available for approval, the approver will receive one notification.)

Approving Invoices

Invoices are approved using Tool # 1920 Approve Accounts Payable Invoices. (This tool is not available until Approvals are activated.)  

Documentation of the Approval Process

If approvals are activated in the A/P Workflow Controls, the Organize Invoices for Payment and Approval will have additional columns.  Either the default approver's Employee ID will appear in the "Appr" column or you will need to assign an approver to approve the invoice.  Once the approver has approved the invoice the "A" column will have an "A" in it.  Then it will be ready to prepare for payment.  

 

Link to ID: https://help.cubase.org/cubase/cubase.htm#Overview_Accounts_Payable_Approvals.htm