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# How to Create Tiered Authorization Levels by Transaction Value
- URL: https://blog.jestor.com/how-to-create-value-based-tiered-authorization-levels/
- Published: 2026-06-05T18:47:16.000Z
- Updated: 2026-06-05T18:47:16.000Z
- Author: Bruno Bannach

Value-based tiered authorization levels are rules that define different approvers as the amount increases — ensuring small expenses are approved quickly by those closest to the operation, while larger values go through review by higher hierarchical levels.

## Why Tiering by Value Makes Sense

Requiring CFO approval for a $50 reimbursement is a waste of executive time. Releasing an $80,000 purchase with manager-level approval is a financial risk. Value-based tiers solve both problems simultaneously.

## How to Structure the Authorization Tiers

The most common model is the value pyramid with escalating approvers:

- **Level 1 (up to $500):** direct manager or team lead
- **Level 2 ($500 to $5,000):** area manager
- **Level 3 ($5,000 to $50,000):** director or VP
- **Level 4 (above $50,000):** CFO or executive committee

Exact values vary by company and industry — what matters is that the tiers are documented, known to everyone, and consistently applied by the system.

## How to Configure Tiered Authorization in the System

**Practical steps:**

- Define value ranges with the finance team and leadership
- Map the responsible approver for each range for each expense type
- Configure the system to identify the request value and route automatically
- Add automatic escalation if the tier approver doesn't respond within the deadline
- Create logs of each approval with the value, approver contacted, and decision made

## Why Jestor Solves This

- Native Approvals with value and hierarchy-based tier configuration
- Automations that identify the value and route to the correct approver without manual intervention
- Configurable automatic escalation by deadline and hierarchical level
- Audit trail recording every decision and the approved value

## FAQ

**Is it possible to have parallel approval for very high values (two approvers simultaneously)?** Yes — Jestor supports parallel and sequential approvals in the same workflow.

**What happens if the value falls exactly on the boundary between two tiers?** You define the rule: the system applies the upper tier for safety, or the lower tier as configured.

**Can I adjust authorization values without reconfiguring the entire workflow?** Yes — rules are editable via the visual interface without needing to rebuild the workflow.

With Jestor, you can automate workflows, connect departments, and build internal systems your way — all without code and with AI support. Discover Jestor at [jestor.com](https://jestor.com/?ref=blog.jestor.com) and find out how to take your company's management to a new level of efficiency and integration.