Hi everyone, I have two questions for you today, and some ideas for you to consider as well:
What are your recommendations for auto-approval thresholds?
Do you use exception levels to help drive your workflow?
Many organizations take advantage of workflow automation to build in auto-approvals at the manager and processor level for low-risk expense reports. The attached case study highlights one large organization where 46.97% of their expense reports get auto-approved without any human intervention needed. How useful is that? As long as managers and processors have the data they need to track spend against budget, you can give everyone a lot more time back in their day and also foster a spirit of empowerment and trust with employees.
My own recommendations are as follows, based on thresholds I built as a SAP Concur customer and what I’ve seen work well for other organizations. The most full-proof way to implement these changes is in conjunction with 100% audit through artificial intelligence as the first step in the workflow, with low risk reports still getting reviewed through automated audit tools, but skipping the human step entirely if compliant.
Reports < $1,000 (or $250, $500, $750, $2,000, etc. depending on company’s comfort level)
AND Reports with all required receipts attached, and no use of Missing Receipt Affidavit
AND Reports with cash / out-of-pocket < $100
AND Reports without personal use of corporate card
AND Reports without major audit rule violations (examples follow)
Potential duplicate transactions
Individual transactions > $500 (excluding hotel and air)
Airfare > $1,000
High risk international spend, based on transaction country