By KYN AI Advisory Team — AI implementation specialists, Singapore
A usable SOP for approvals, claims and invoices has eight fields: purpose, owner, trigger, steps, limits, evidence, exceptions and review date. Copy the template below, fill in one page per process, and write every limit as a number. A process you can describe in numbers is a process you can later hand to software. A process described in adjectives is not.
Why write the SOP before you automate anything?
An agent, a workflow tool or a new hire all need the same thing: a rule they can follow without asking you. If the rule lives in your head, the first thing any automation does is expose that.
We see the same pattern in every review. The team says "we approve anything reasonable." Then we ask what reasonable means, and three people give three answers. That gap is where money leaks and where automation breaks.
A written SOP does three jobs:
- It sets the limit. Who may approve what, up to which amount.
- It names the evidence. What must be attached before anyone approves.
- It marks the stop points. Which steps need a named person, always.
The same page then becomes the specification for an automated version. Nothing is wasted if you never automate.
What is the template?
Use this block for every process. One page each. If it runs longer, you have two processes.
SOP name:
Purpose (one sentence):
Owner (a named person, not a team):
Backup owner:
Trigger (what starts it):
Inputs (documents or data required):
Steps (numbered, one action each, one actor each):
Limits (amounts, counts, time windows):
Evidence kept (what is stored, where, for how long):
Exceptions (what stops the process and who decides):
Outputs (what exists when it is done):
Review date (and who reviews):Three rules for filling it in:
- One actor per step. "Finance reviews" is not a step. "Finance lead checks the invoice against the purchase order" is.
- One verb per step. Check, approve, post, pay, file, reject.
- A number wherever a judgement hides. "Large" becomes "above S$5,000." The figure can be yours. It only has to exist.
What does an approval SOP look like?
An approval SOP answers one question: who can say yes to what. Write it as a table of authority first, then the steps.
| Spend per item | Approver | Second approver | Evidence | |---|---|---|---| | Up to S$500 | Department head | None | Receipt or quote | | S$501 to S$5,000 | Department head | Finance lead | Quote, purchase order | | Above S$5,000 | Finance lead | Director | Two quotes, purchase order |
The amounts above are examples. Replace them with yours.
Steps:
- Requester submits the request with the quote attached.
- Department head confirms the need and the budget line.
- Finance lead checks the amount against the authority table.
- Second approver signs where the table requires one.
- Requester raises the purchase order. No order, no payment.
- Finance lead records the approval with the name and the time.
Exceptions to write down: split purchases that stay under a limit, urgent spend when the approver is away, and a supplier not yet on your list. For each, name who decides.
What does an expense claim SOP look like?
Claims fail on evidence, not on intent. Write the evidence rule first.
SOP name: Expense claims
Trigger: employee spends own money or card for the business
Evidence: itemised receipt, business purpose, date, currency, amount charged
Submission window: a fixed number of days after the spend (set your own)Steps:
- Employee submits the receipt with a one-line purpose within the window.
- Manager confirms the spend was for the business.
- Finance checks the receipt for the supplier name, date and tax details.
- Finance records the claim at the amount the card actually charged, in the account currency.
- Finance pays in the next payment run.
Two details save arguments later. First, claim the amount the card charged, not the face value on a foreign receipt. Our guide to recording foreign currency expenses in Singapore explains why. Second, if you claim GST on a purchase, the receipt must carry what your tax adviser needs. See how to scan receipts for GST claims.
Exceptions: no receipt, personal and business items on one receipt, and a claim older than the window. Decide in advance. "No receipt" can be a signed declaration under a low limit, approved by the finance lead, and never for the same person twice in a month.
What does a supplier invoice SOP look like?
This is the process where a mistake costs real money, so it has the most stop points.
Steps:
- Invoice arrives at one shared mailbox or one upload page. Not in a personal inbox.
- Finance logs the invoice: supplier, number, date, amount, currency, due date.
- Finance checks for a duplicate by supplier and invoice number.
- Finance matches the invoice to the purchase order and the delivery or service record.
- A mismatch above your tolerance stops the invoice and goes to the requester.
- The approver per the authority table approves the payment.
- Finance schedules payment for the due date, not earlier.
- Finance posts the invoice and the payment, and attaches the PDF.
Limits to write down: the match tolerance (for example, S$20 per invoice), the payment terms you honour, and the amount above which a second person releases the payment.
A change to a supplier's bank details is the highest-risk exception. Require a call back to a number you already hold, never a number in the email that asked for the change. Put it in the SOP in capitals if you must.
Which steps can software do, and which must stay with a person?
Once the SOP exists, mark each step. This is the whole automation design.
| Step type | Example | Who does it | |---|---|---| | Read and extract | Pull supplier, date, amount from a PDF | Software | | Check against a rule | Duplicate test, tolerance test, limit test | Software | | Route | Send to the approver in the table | Software | | Chase | Remind an approver after a set interval | Software | | Approve | Say yes to spend | Named person | | Pay | Release money | Named person | | Change bank details | Edit a supplier record | Named person, with call back | | Delete or void | Remove a record | Named person |
Our rule: anything that moves money, sends a message outside the company, files with an authority or deletes data waits for a named person. Everything else can run unattended and logged. For the mechanics, see how to set approval gates for high-risk agent actions.
How do you keep the SOP alive?
An SOP that nobody opens is a decoration. Three habits keep it true.
- Review date, then review. Put the date in the document and in a calendar. Six months is a sensible default for money processes.
- Log exceptions. Every time someone works around the SOP, write down why. After a quarter, the exception list tells you which step to redesign.
- Test with a new person. Ask someone who has never done the process to follow the page. Every question they ask is a missing line.
Where KYN fits
KYN turns SOPs like these into running systems. In the review, which takes the first 14 days, we collect your SOPs or write them with your team, then mark each step as software or person using the table above. A full build ships in under 90 days.
For KYN's own books, the same pattern runs live: bills arrive from Gmail, receivables are chased at 3, 14 and 30 days, and payroll follows 2026 CPF rules. Every action is logged with the actor, and payments wait for a named person. The system runs in a cloud account in your name. See finance systems and operations systems.
Frequently asked questions
How long should an SOP be?
One page per process. If it needs more, split it into two processes with a clear hand-off. Short pages get read and followed.
Who should own an SOP?
A named person who does or supervises the work, not a committee. Add a backup owner so the SOP survives leave and resignations.
Can I automate an SOP that has exceptions?
Yes. Automate the standard path and route every exception to a named person with the reason attached. Over time, the exception log shows which cases deserve their own rule.
Checked 30 October 2026.
Curious whether Marketing agents fits your business? Talk to KYN on WhatsApp — no forms, just a conversation.
