Posted Invoice Approval

Obligations must be recorded in the accounting as soon as they arise

According to the accrual principle, costs and obligations must be recognized in the period in which they are incurred, not only after internal approval.

A received invoice:

• Represents a legal obligation;
• Must therefore be recorded in the general ledger;
• Regardless of whether it has already been internally approved for payment.

Placing approval before posting:

• Delays the recognition of obligations;
• Creates an incomplete picture of liabilities;
• Distorts liquidity and profit analyses.

Better management information for management and finance

With recorded invoices:

• Align cash flow forecasting more closely with reality;
• Are accounts payable balances correct;
• Do costs and margins add up.

You don’t see what you hope to spend, but what you actually owe. This is essential for:

• Month-end closing;
• Budget monitoring;
• Investment decisions;
• Conversations with the bank, accountant, or investors.

Internal control remains fully intact

A frequently heard concern is: “But then anything could be paid.” That is exactly what Posted Invoice Approval prevents.

Our solution:

• The invoice is recorded;
• But not released for payment;
• As long as the approval flow has not been completed.

This separates:

• Accountability process (accounting);
• From the authorization process (payment).

Exactly as accountants and auditors intend.

Discussion? Always properly via a credit note

In practice, the rule is: if you disagree with an invoice, a credit note always follows. That means:

• The original obligation does exist;
• And therefore belongs in the administration;
• Corrections are made via a verifiable audit trail.

This is transparent, controllable, and fully in line with accounting best practices. What does it yield?

✔ Realistic financial picture;
✔ Better decision-making;
✔ Faster and more reliable month-end closing;
✔ Stronger internal control;
✔ Fully audit-proof.

Because steering based on numbers only works if they are correct.

Availability and rate

The Posted Invoice Approval app is available in Microsoft AppSource. In principle, you have the option to add this application to your Business Central environment yourself, without the help of your implementation partner. However, keep in mind that this may result in unexpected changes to your software. The Bluace team is ready to guide you in purchasing add-ons and ensuring a seamless expansion. Contact us for the rate, or if you are interested in using this app and it is not available in your region.