Journal Entry Approval Workflow

Route journal entries through a structured review process before they post to your ledger — with a permanent audit trail and role-based configuration per company.

Overview

The Journal Entry Approval Workflow adds a mandatory review step between the creation of a journal entry and its posting to account balances. When enabled, entries cannot be posted directly — they must be submitted for approval and confirmed by an authorized reviewer before the ledger is updated.

This workflow supports:

Separation of duties between entry preparers and entry approvers
Reduction of posting errors through a second-review checkpoint
Compliance with GAAP internal control requirements and SOX Section 404 documentation standards
Auditor-ready documentation — every approval is recorded with the reviewer's name, timestamp, and written comments

Tip: The approval workflow is configured per company. If you manage multiple companies in Kantivo, each company has independent approval settings. One company may require approval for all roles while another has the feature disabled entirely.

Status Workflow

Every journal entry in Kantivo carries a status that reflects its current position in the lifecycle. The statuses are:

Status	Description	Who Can Act
Draft	Entry has been created and saved but not submitted for review. Does not affect account balances.	Preparer can edit or submit
Pending Approval	Entry has been submitted and is awaiting a reviewer decision. The preparer cannot edit it while it is pending.	Approver can approve or reject
Approved	Entry has been reviewed and approved. It is cleared to post to the ledger.	System posts automatically, or Admin posts manually
Posted	Entry has been committed to the ledger and affects account balances. It appears in all financial reports.	Cannot be edited; requires a reversing entry to correct
Rejected	Returned to the preparer with a reviewer comment. Reverts to Draft status for correction.	Preparer can edit and resubmit

Note: An entry in Draft or Pending Approval status does not affect account balances or appear in financial reports. Only Posted entries are included in your general ledger, trial balance, income statement, and balance sheet.

Submitting an Entry for Approval

To submit a journal entry for approval:

Navigate to Journal Entries in the main menu.
Create a new entry or open an existing Draft entry.
Enter all debits and credits. Verify the entry balances (debits must equal credits).
Add a Description or Reference Number to help the reviewer identify the purpose of the entry.
Optionally add a Preparer Note — a short explanation of why the entry is being made, what it corrects, or what supporting documentation exists.
Click Submit for Approval.

The entry status changes from Draft to Pending Approval. The designated approver receives a notification. You will not be able to edit the entry while it is in Pending Approval status.

Best Practice: Always include a preparer note when submitting entries that are not self-explanatory — such as adjusting entries, reclassifications, or corrections. A clear note reduces back-and-forth with the reviewer and speeds up the approval process.

Withdrawing a Submitted Entry

If you submitted an entry by mistake or realize you need to make a change before the reviewer acts on it, you can withdraw the submission:

Open the entry from the Pending Approval list.
Click Withdraw Submission.
The entry returns to Draft status and is removed from the approval queue.
Make your changes and resubmit when ready.

Reviewing Entries in the Approval Queue

Users with the Manager, Partner, or Admin role (depending on your company's configuration) see an Approval Queue in their journal entries view. The queue shows all entries currently in Pending Approval status that are waiting for review.

What the Queue Shows

Column	Description
Entry Date	The accounting date of the journal entry
Submitted By	Name of the user who submitted the entry
Submitted On	Date and time the entry was submitted for review
Description	Entry description / reference number
Total Debits	Sum of all debit lines (equals sum of all credits)
Preparer Note	Optional note left by the preparer at submission

Click any entry in the queue to open the full detail view, which shows every debit and credit line with account names, account codes, and amounts.

Approving and Rejecting Entries

To Approve an Entry

Open the entry from the Approval Queue.
Review all lines, account codes, amounts, and the preparer's note.
If satisfied, click Approve.
Optionally add an approval comment (recommended for significant or unusual entries).
Click Confirm Approval.

The entry status changes to Approved and then immediately to Posted as Kantivo commits it to the ledger. Account balances update at that moment and the entry appears in all reports.

To Reject an Entry

Open the entry from the Approval Queue.
Click Reject.
Enter a rejection comment explaining what needs to be corrected. This field is required.
Click Confirm Rejection.

The entry status returns to Draft. The preparer receives a notification with your rejection comment. They can then edit the entry and resubmit for approval. The original submission and your rejection — including the comment — are preserved permanently in the entry's history.

Tip: Write specific rejection comments. Instead of "Please fix this," write "The expense account should be 6100 Meals & Entertainment, not 6200 Travel. Please recode line 2 and resubmit." Specific feedback reduces the number of resubmission cycles.

Important: You cannot approve your own entries. Kantivo enforces the four-eyes principle — the user who created the entry and the user who approves it must be different people. If you need to post an entry you created and no approver is available, an Admin can use the override function (see Configuration section).

Approval History & Audit Trail

Every journal entry in Kantivo maintains a complete history of status changes. To view the history of an entry:

Open any journal entry (Draft, Posted, or otherwise).
Click the Approval History tab or scroll to the History section at the bottom of the entry detail.

The history shows each event in chronological order:

Event Type	Information Recorded
Created	User name, date and time entry was first saved as Draft
Submitted	User name, date and time of submission, preparer note text
Approved	Approver name, date and time of approval, approval comment
Rejected	Reviewer name, date and time of rejection, rejection comment (required)
Resubmitted	Preparer name, date and time, updated preparer note
Posted	Date and time the entry was committed to the ledger
Admin Override	Admin user name, date and time, override reason

Audit trail records cannot be edited or deleted. They are permanent and tied to the entry for as long as the company record exists.

Exporting the Audit Trail

To export journal entry approval records for an auditor or for your own records:

Navigate to Journal Entries.
Use the date range filter to select the period of interest.
Click Export and select With Approval History.
Kantivo generates a CSV or PDF showing each entry, its preparer, its approver, all dates, and all comments.

For Auditors: This export is typically what your external auditor will request when testing the operating effectiveness of your journal entry controls. The export includes all information required under AU-C Section 240 for testing management override of controls.

Configuration

The approval workflow is configured per company under Settings > Journal Entry Approval.

Enabling the Workflow

Navigate to Settings > Journal Entry Approval.
Toggle Require Approval Before Posting to On.
Select which roles require approval (see Role Permissions table below).
Select which roles can serve as approvers.
Click Save Settings.

Role Permissions

Role	Can Create Entries	Requires Approval (default)	Can Approve Others' Entries
Admin	Yes	No (configurable)	Yes
Manager / Partner	Yes	No (configurable)	Yes
Accountant	Yes	Configurable	Configurable
Bookkeeper	Yes	Yes (default)	No
Viewer	No	N/A	No

Admin Override

Admin users can bypass the approval requirement in urgent situations by clicking Post Without Approval on any entry. Before the override is applied, Kantivo prompts the admin to enter a reason. The override, the reason, and the admin's identity are recorded in the entry's audit trail. Use this sparingly — frequent overrides undermine the purpose of the control and will be noted by auditors reviewing your journal entry testing results.

Disabling the Workflow

To disable the approval requirement for a company, navigate to Settings > Journal Entry Approval and toggle Require Approval Before Posting to Off. Existing Draft and Pending Approval entries are not affected — they remain in their current status. Any entry still in Pending Approval will need to be approved or withdrawn before it can be posted.

Frequently Asked Questions

Can I set up a two-level approval process (e.g., accountant approves, then partner approves)?

The current implementation supports a single approval level. One designated approver reviews and either approves or rejects the entry. Two-level sequential approval is on the product roadmap. If this is critical for your workflow, contact Kantivo support to register your interest and be notified when it becomes available.

What happens to pending entries when the company period is closed?

Entries in Draft or Pending Approval status are not included in period-closing calculations. When you close a fiscal period, Kantivo will warn you if there are unresolved entries dated in the closing period. You should resolve all pending entries — approve and post them, or withdraw them — before completing the period close.

Is the approval workflow available on all subscription tiers?

The journal entry approval workflow is available on Professional tier and above. Trial users can see the feature but cannot enable it. Check your current license tier in Settings > License to confirm availability.

Can approvers see attached documents or receipts on the entry?

Yes. Any documents or attachments added to the journal entry are visible to the approver when they open the entry detail in the approval queue. This allows reviewers to verify supporting documentation — such as a vendor invoice or a management memo authorizing an adjusting entry — without leaving Kantivo.

Need more help? Visit the Help Center index or contact Kantivo support from within the application.