API ReferenceIntegrationsKnowledge Base

Approval Workflow

Handy Tips
The Approval Workflow feature is available on request. It is not enabled by default. Raise a request using the support form on the RazorpayX Dashboard to enable this feature.

You can create custom workflows for creation and approval, allowing you to scrutinize your payouts and reduce human errors.

Approval Workflow can be applied to all payouts created on RazorpayX, whether they are created individually from the RazorpayX Dashboard, using API or using the Bulk Payout feature.

Watch Out!
The Approval Workflow feature is not available in the Test mode.

Set Up Approval Workflow🔗

There are two steps involved in setting up Approval Workflow on your system:

  1. Enable Approval Workflow on your account and create workflows
  2. Assign user roles

Step 1: Create a Workflow🔗

Watch this video to see how to set up workflows.

To create/modify a workflow:

  1. Log into your RazorpayX Dashboard.
  2. Navigate to My Account & SettingsWorkflowsSet Up Workflow / Change Rules and follow the steps on-screen.
  3. Click Request Setup.

We receive the request and process it. Your workflow will be ready in 1-2 business days.

Sample Approval Matrix🔗

Below is an example of how you can set up an approval matrix.

Payout Amount

Approval Step 1 (verifier)

Approval Step 2 (authorizer)

Up to ₹1,000

Not required

Not required

Between ₹1,001 and ₹10,000

Finance L2

Not required

Between ₹10,001 and above

Finance L2

Finance L3

Step 2: Assign User Roles🔗

After the approval matrix is set, you can add users to your RazorpayX account and assign roles to them. You can invite anyone with a valid email address to join your RazorpayX team. Each user has unique login credentials.

Watch the video to see how to add a user and assign a role.

To assign user roles:

  1. Log into your Dashboard.
  2. Navigate to My Account and SettingsTeam Management, click + MEMBER and follow the on-screen steps.

Users are informed about the invitation via email.

Approval Workflow User Roles🔗

The Approval Workflow feature comes with the following 5 user roles that you can use to set up the approval matrix as per your business needs:

Role

Description

Finance L1

In banking terms, you can look at this role as the Inputter.

Finance L2

In banking terms, you can look at this role as the Verifier.

Finance L3, Admin and Owner

In banking terms, you can look at this role as the Authorizer.

Know more about managing team, adding users and standard user roles.

Disable Approval Workflow for Payouts Created Using APIs🔗

Watch Out!
You can disable Approval Workflow only for payouts created using APIs. Payouts created using the Dashboard will follow the Approval Workflow before they are processed.

Watch this video to see how to disable Approval Workflows from the RazorpayX Dashboard.

To disable Approval Workflows for payouts created using APIs from the RazorpayX Dashboard:

  1. Log into your RazorpayX Dashboard as the Owner or Admin.
  2. Navigate to My Account & SettingsWorkflows and disable the Workflow on payouts done via API option.

Example Flow🔗

Let us consider that you have set up a workflow where any payout above ₹10,001 has to be approved by the roles Finance L2 and Finance L3. You are trying to make a payout for ₹50,000 and your business account balance is ₹10,000.

Below is how the payout is created and approved:

Action by User

What Happens

Reason

Step 1: Finance L1 (issuer) creates the payout.

The payout moves to the pending state.

Approval needed from Finance L2 (verifier).

Step 2: Finance L2 (verifier) verifies the payout.

The payout remains in the pending state.

Approval needed from Finance L3 (authorizer).

Step 3: Finance L3 (authorizer) authorizes the payout.

The payout remains in the queued state.

Insufficient balance.

Step 4: You add funds (any amount more than ₹40,000) to your business account.

The payout moves to the processing state.

No further action required.

No further action is required by you to process the payout. It follows the regular workflow. That is, it can either be processed or reversed.

Approve or Reject a Payout🔗

You can approve or reject payouts only from the RazorpayX Dashboard. You can also select and approve multiple payouts at once from the Dashboard using the check box beside the payout. Watch the video to see how to approve or reject a payout.

Webhook Events🔗

In addition to the webhooks events available for payouts, the Approval Workflow has the following events:

payout.pending
Triggered whenever a payout moves to the pending state. That is, the payout needs to be approved by a user for processing.
payout.rejected
Triggered whenever a payout moves to the rejected state. That is, the payout was rejected by a user.
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