With Acumatica ERP, approval of cash transactions can be configured easily. To configure cash transaction approval in your system, enable the Approval Workflow feature on the Enable/Disable Features (CS100000) form. Select the Active check box on the Approvals tab of the Cash Management Preferences (CA101000) form and specify the approval map created for cash transactions. You can create the approval maps by using the Assignment and Approval Maps (EP205500) form.

You can configure parallel approval by specifying more than one employee as an approver. In this case, one cash transaction can be assigned to multiple employees for approval, and it is considered approved when it gets approval from each authorized employee.

You can implement such strategies as the following to enforce internal control:

• Assigning receipts and disbursements to different employees for approval
• Assigning cash transactions with large amounts to one person or group for approval, and cash transactions with smaller amounts to another
• Assigning for approval only cash transactions with significant amounts; no approval is required for transactions with smaller amounts

For details on the setup of approvals, see Approval Configuration: General Information.

When a user attempts to release a cash transaction that requires approval, the system assigns the transaction to the employee or employees authorized to approve transactions of specific type. The system performs assignment automatically by using the approval map specified on the Cash Management Preferences (CA101000) form.

If approval is required, cash transactions cannot be released without approval: When users attempt to release them, the transactions will be automatically assigned to specific employees for approval and will get the Pending Approval status, which they will keep until they have been approved by all the required employees.

If approval is not required, Balanced cash transactions can be released without approval.

Once you have configured cash transaction approval, when a user removes a cash transaction from hold, the system performs assignment for approval and gives the transaction the Pending Approval status. Transactions with this status can be displayed and approved on the Approvals (EP503010) form. If a user has access to this form, the system displays by default the transactions assigned to this user. The user can approve all listed transactions or only selected ones. If the user is a member of a higher-level workgroup, the user can also view and approve or reject escalated transactions from groups at lower levels.

Approval affects a transaction as follows:

• If it has been approved by only some of the required approvers, the transaction still has the Pending Approval status. If the employee who approved the transaction belongs to a group that is located at a higher level on the company tree than the groups of other approvers, the transaction’s status will change to Released.
• If all required approvals have been performed, the transaction has the Balanced status.

If you are viewing a particular cash transaction on the Cash Transactions (CA304000) form, you can approve or reject it. To do this, click Approve or Reject on the form toolbar. Approval information is shown on the Approvals tab of the Cash Transactions form. You can view to whom the transaction was assigned, who actually approved it, and when approval occurred. A rejected transaction gets the Rejected status; it can be modified as needed (by clicking Hold on the form toolbar to give it the On Hold status) and assigned for approval again.

• Approving Records
• Cash Management Preferences (CA101000)
• Cash Transactions (CA304000)
• Company Tree (EP204061)
• Assignment and Approval Maps (EP205500)