An approval matrix is a table that sets out who is allowed to approve which purchases. It usually maps roles (site manager, project manager, director) against value bands, and sometimes against purchase categories or projects.
It's often part of a company's delegation of authority (DOA) — the wider policy on who can commit the company to spending, contracts and payments.
What an Approval Matrix Looks Like
A simple example:
| Purchase value | Site manager | Project manager | Director |
|---|---|---|---|
| Low (day-to-day consumables) | Approves | — | — |
| Medium | Recommends | Approves | — |
| High | Recommends | Recommends | Approves |
The value bands are set by each company — there is no standard amount. Many matrices add extra rules, such as:
- Category rules — equipment hire or subcontracts always need the project manager.
- Project rules — each project's PM approves that project's purchases.
- Budget rules — anything over the remaining budget goes up a level.
How to Build One
- List your approvers by role, not by name, so the matrix survives staff changes.
- Set three or four value bands based on your typical purchases.
- Add category or project rules only where they catch real problems.
- Name a fast path for urgent purchases so people don't bypass the matrix.
- Put it into your purchasing system, so requests are routed by the matrix automatically.
Our PO approval workflow guide walks through each step in more detail.
Why It Matters
Without an approval matrix, approval authority depends on who happens to be available. With one that isn't enforced, it depends on whether people remember it. Either way, the company can't show that each purchase was approved by someone with the authority to approve it.
In Bilaro, requisitions are routed to the right approver automatically — by value and role — and each decision is recorded with a timestamp on an unbroken audit trail. Companies running several entities can set a separate approval hierarchy for each with multi-company routing.
What is an approval matrix?
An approval matrix is a table that defines who can approve which purchases or transactions, usually based on value and sometimes on category or project.
What is the difference between an approval matrix and a delegation of authority?
A delegation of authority (DOA) is the broader policy on who can commit the company to spending, contracts and payments. An approval matrix is the practical table that applies that policy to specific transactions such as purchases.
How many levels should an approval matrix have?
Most SMEs manage with three or four value bands. More levels tend to slow purchasing without adding much control.