An approval matrix is a table that says who can approve what, up to which amount, for each type of request. It is also called approval limits, signing authority or a delegation of authority matrix. Each row is a tier: a request falls into exactly one tier, and that tier names the approvers.
Why it matters
A matrix makes small decisions fast and big decisions careful at the same time. Routine requests stop queuing behind the CFO, large commitments get more eyes, and nobody has to ask "who signs this?" because the answer is in the table.
Example
Purchase limits at a 50-person company (illustrative):
| Amount | Approvers |
|---|---|
| Up to $1,000 | Manager |
| $1,000 to $10,000 | Manager, department head |
| Above $10,000 | Manager, department head, CFO |
A $3,200 laptop order goes to the manager and the department head. A $450 software subscription needs only the manager.
Common pitfalls
- Split purchases. Two $900 orders to dodge a $1,000 limit. Look at totals per supplier and per week, not only single requests.
- Too many tiers. Three or four are enough for most small and mid-sized companies.
- Names instead of roles. Write "department head", not "Karen", so the matrix survives turnover.
- Amounts that change after approval. If the final invoice lands in a higher tier, the request should go back for the extra approval.
- Self-approval. A manager's own request should go to their manager.
In Easyflow, approval limits by amount pick the approvers from tiers and are recalculated when the amount changes.