Approval Matrix Template: How to Define Who Approves What
Use this approval matrix template to define approval authority by request type, dollar amount, department, risk level, exception status, and escalation path.
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Approval Matrix Template: How to Define Who Approves What
One of the fastest ways to create approval bottlenecks is to leave approval authority unclear.
When people do not know who approves what, requests bounce between teams, sit in inboxes, or get escalated higher than necessary.
A purchase waits on an executive who does not need to be involved.
A contract goes to legal even though the terms are standard.
A software access request waits on IT even though the manager has not approved the business need.
A vendor request stalls because nobody knows whether finance, compliance, or procurement owns the next step.
An approval matrix helps solve this.
It defines who has approval authority based on request type, amount, department, risk level, and exception status.
This guide explains how to build an approval matrix that creates clarity without adding unnecessary bureaucracy.
What Is an Approval Matrix?
An approval matrix is a structured table that defines who approves different types of requests.
It helps answer:
Who can approve this request?
When does approval escalate?
Which requests require multiple approvers?
Which approvals depend on dollar amount?
Which approvals depend on risk level?
Which requests require legal, finance, compliance, or executive review?
A simple approval matrix might define spending authority by dollar amount.
A more advanced approval matrix may also include request type, department, risk, vendor status, contract terms, location, or exception status.
The goal is to make approval authority clear before a request is submitted.
Why Approval Matrices Matter
Approval matrices reduce ambiguity.
Without one, employees rely on memory, past practice, or informal advice.
That creates inconsistency.
For example:
One manager approves a $2,500 purchase independently.
Another manager sends the same type of request to finance.
A third escalates it to leadership.
The same request receives three different paths.
That is not good control.
It is process inconsistency.
A clear approval matrix helps teams:
route requests faster,
avoid unnecessary escalation,
enforce spending authority,
reduce approval confusion,
improve accountability,
support audit readiness,
and make decision rights visible.
Approval Matrix vs. Approval Workflow
An approval matrix defines who approves what.
An approval workflow defines how the approval moves.
You need both.
Approval Matrix | Approval Workflow |
Defines approval authority | Routes the request through the process |
Shows who approves by rule | Assigns tasks and deadlines |
Helps determine routing | Tracks status and completion |
Often a table | Often a live process |
Answers “who decides?” | Answers “how does the decision happen?” |
For example, an approval matrix may say that purchases over $10,000 require finance approval.
The approval workflow then collects the purchase request, routes it to finance, sends reminders, records the decision, and notifies the requester.
What to Include in an Approval Matrix
A useful approval matrix should include more than names.
It should define the rule behind each approval.
Recommended fields
Field | Purpose |
Request type | Defines what kind of approval is needed |
Request amount | Determines spending threshold or financial authority |
Department | Identifies business owner |
Risk level | Determines whether additional review is needed |
Standard vs. exception | Identifies non-standard requests |
Primary approver | Person or role with first approval authority |
Secondary approver | Additional reviewer if needed |
Final approver | Person or role with final decision authority |
Required documentation | Context needed for approval |
Escalation rule | What happens if approval is delayed |
Notes | Special conditions or exceptions |
Approval Matrix Template
Use this as a starting point.
Request Type | Criteria | Primary Approver | Additional Approver | Required Information | Escalation Rule |
Purchase request | Under $1,000 and budgeted | Department manager | None | Business purpose, amount, vendor | Escalate to department lead after 3 business days |
Purchase request | $1,000–$10,000 | Department manager | Finance | Business purpose, budget code, vendor | Escalate to finance lead after 3 business days |
Purchase request | Over $10,000 | Department head | Finance + executive sponsor | Business case, budget, vendor, contract | Escalate to executive sponsor after 5 business days |
New vendor | Any amount | Business owner | Finance / compliance | Vendor info, W-9, insurance, contract | Escalate to workflow owner after 5 business days |
Contract review | Standard terms | Business owner | Legal if needed | Contract, scope, pricing | Escalate to legal lead if overdue |
Contract review | Non-standard terms | Business owner | Legal + finance | Contract, redlines, risk notes | Escalate to legal lead and business owner |
Software access | Standard role access | Manager | IT | Role, system, permission level | Escalate to IT lead before start date |
Restricted system access | Sensitive data or elevated permissions | Manager | IT/security | Business justification, permission level | Escalate to security lead |
Compliance exception | Any exception | Compliance owner | Department leader | Exception reason, risk, mitigation plan | Escalate to compliance lead |
This table should be adapted to your organization.
The important part is not the exact thresholds.
The important part is that authority is explicit.
Example: Spending Approval Matrix
Spending approvals are one of the most common use cases for an approval matrix.
Amount | Approver | Notes |
$0–$500 | Team manager | Must be budgeted |
$501–$2,500 | Department manager | Requires business justification |
$2,501–$10,000 | Department head + finance | Requires budget confirmation |
$10,001–$50,000 | Executive sponsor + finance | Requires business case |
$50,000+ | Executive leadership / CFO | Requires strategic review |
This type of matrix prevents every small purchase from going to leadership while still protecting larger or higher-risk spending.
Example: Contract Approval Matrix
Contract approvals should usually depend on risk, value, and whether terms are standard.
Contract Type | Approval Path |
Standard low-value agreement | Business owner |
Standard agreement above threshold | Business owner + finance |
Non-standard terms | Business owner + legal |
Customer contract with custom obligations | Business owner + legal + operations |
Vendor contract with data/security risk | Business owner + legal + IT/security |
High-value or strategic contract | Business owner + finance + executive sponsor |
The mistake many companies make is sending every contract through the same review path.
That overwhelms legal and slows down routine work.
A matrix helps separate routine review from high-risk review.
Example: Access Approval Matrix
Access approvals should depend on system sensitivity and role requirements.
Access Type | Approval Path |
Standard role-based access | Hiring manager / department manager |
Department-specific software | Manager + system owner |
Financial systems | Manager + finance system owner |
Customer data systems | Manager + IT/security |
Admin or elevated permissions | Manager + IT/security lead |
Temporary access exception | Manager + system owner + expiration date |
This is especially useful during onboarding, offboarding, internal transfers, and access reviews.
Example: Vendor Approval Matrix
Vendor approvals may require multiple departments depending on the vendor type and risk.
Vendor Type | Approval Path |
Existing low-risk vendor | Business owner |
New low-risk vendor | Business owner + finance |
Vendor requiring contract | Business owner + legal + finance |
Vendor with insurance requirements | Business owner + compliance/risk + finance |
Vendor with data/security access | Business owner + legal + IT/security |
Strategic vendor | Executive sponsor + legal + finance |
This helps prevent vendor onboarding from becoming a confusing mix of finance, legal, compliance, and operations reviews.
Common Approval Matrix Mistakes
1. Using names instead of roles
People change jobs, leave companies, or move departments.
Use roles whenever possible.
Better:
Department manager
Instead of:
Sarah
2. Making every approval escalate too high
If executives approve every small request, the process will slow down and leadership will become a bottleneck.
Reserve executive review for high-value, high-risk, strategic, or exceptional requests.
3. Ignoring risk level
Dollar amount is not the only factor.
A low-cost software tool may create high security risk. A small vendor may create compliance risk. A policy exception may create legal risk even if no money is involved.
4. Forgetting exceptions
Every approval matrix needs rules for exceptions.
If something does not fit the standard path, who decides?
5. Not connecting the matrix to a workflow
A matrix sitting in a document is helpful, but limited.
The real value comes when the matrix routes approval requests automatically or consistently.
How to Turn an Approval Matrix Into a Workflow
Once your matrix is defined, use it to build the approval workflow.
For each row in the matrix, define:
what triggers approval,
what information is required,
who receives the request,
how long they have to review,
what happens if they approve,
what happens if they reject,
what happens if they do not respond,
and where the decision is recorded.
For example:
Matrix Rule
Purchases over $10,000 require department head and finance approval.
Workflow Version
Requester submits purchase request.
Form requires amount, vendor, business case, budget code, and deadline.
Request routes to department head.
If approved, it routes to finance.
If finance approves, requester is notified.
If rejected, requester receives reason and revision instructions.
If either approval is overdue, escalation rule triggers.
Final decision is stored in the approval record.
That is how the matrix becomes operational.
Where Nawfe Fits
Nawfe helps teams turn approval matrices into live workflows.
Instead of asking employees to interpret a static table, Nawfe can route requests based on the rules you define.
With Nawfe, teams can:
collect approval requests through forms,
route requests based on amount, type, department, or risk,
assign approval tasks to the right roles,
manage reminders and escalations,
document approvals and rejections,
return requests for revision,
and maintain an approval record.
The matrix defines the rules.
Nawfe helps run the process.
Use the Approval Workflow Builder Template to define your approval matrix, routing rules, escalation paths, and decision records.
