What is Maker Checker Automation?
Definition
Maker checker automation is the use of configured approval rules to separate transaction preparation from transaction review. The “maker” creates, edits, or submits a finance transaction, while the “checker” independently reviews, approves, rejects, or requests clarification before the transaction moves forward. This structure is commonly used for journal entries, supplier payments, vendor master changes, customer credit approvals, expense claims, purchase requests, bank account updates, and close adjustments.
In finance operations, maker checker automation supports stronger financial control by ensuring that important actions are reviewed by an authorized person before they are posted, paid, or finalized. It creates a clear approval trail, strengthens accountability, and helps finance teams maintain reliable financial reporting across recurring and high-value activities.
How Maker Checker Automation Works
For example, a junior accountant may prepare a $65,000 accrual journal, but the journal cannot be posted until a finance manager reviews the calculation, supporting documents, account coding, and business reason. This creates a practical Maker-Checker Control that separates preparation from approval.
Maker action: create, upload, edit, or submit the transaction.
Rule check: validate amount, category, entity, account, and approval path.
Checker action: approve, reject, comment, or request more support.
Audit trail: record user, timestamp, decision, and supporting evidence.
Core Components
Strong maker checker automation depends on clear roles, approval thresholds, workflow rules, access rights, escalation paths, and exception handling. The setup should define who can create a transaction, who can approve it, which values require senior review, and which transactions need additional supporting documentation.
Many organizations use Standard Operating Procedure (SOP) Automation to document how maker and checker responsibilities work across finance activities. Business Process Automation (BPA) can connect submission, validation, approval, posting, and reporting into one controlled sequence. In shared service environments, Robotic Process Automation (RPA) in Shared Services can support preparation steps, status tracking, and routing while the checker performs the required review.
Worked Example
Assume a company has a vendor bank account change request for a supplier that receives monthly payments. The maker enters the new bank details and attaches the supplier confirmation. The rule checks whether the vendor is active, whether the bank country matches the supplier profile, and whether the change requires treasury approval.
Because the vendor has monthly payments above $100,000, the request is routed to the accounts payable manager and treasury checker. The checker reviews the documentation, validates the change request, and approves the update. Once approved, the system records the maker, checker, approval date, and evidence. This protects payment governance and supports accurate vendor management.
Use Cases
Maker checker automation is useful wherever finance teams need independent review before an action becomes final. It is widely used in procure-to-pay, record-to-report, order-to-cash, treasury, tax, payroll, and master data governance.
Journal entry preparation and approval before general ledger posting.
Vendor master data updates and supplier bank account changes.
Payment batch preparation through approval and release.
Customer credit limit decisions through Customer Credit Approval Automation.
Finance workflow design supported by Robotic Process Automation (RPA) Integration.
Controls and Governance
Maker checker automation supports segregation of duties by ensuring that the same person does not both initiate and approve sensitive finance activity. Access roles should be mapped carefully so makers, checkers, administrators, and auditors have appropriate responsibilities. This improves transparency and strengthens the company’s internal control environment.
Before rollout, User Acceptance Testing (Automation View) helps confirm that maker roles, checker roles, thresholds, approval paths, and audit logs work as intended. An Automation Center of Excellence may define design standards, documentation requirements, approval rules, and control expectations across finance workflows.
Business Impact and Key Metrics
Maker checker automation improves operational efficiency, approval visibility, policy compliance, and business performance by giving finance leaders a clear view of pending transactions and completed approvals. It also supports cash flow visibility because payment, vendor, and treasury approvals can be tracked before cash leaves the business.
Useful metrics include approval cycle time, pending approval value, exception rate, first-pass approval rate, and Automation Rate (Shared Services). Finance teams may also monitor checker workload, escalation volume, and approval aging to improve decision speed and ownership clarity.
Best Practices
Best practice is to define maker and checker roles by transaction type, value, risk level, and legal entity. Rules should be simple to understand, documented, and aligned with the delegation of authority. When roles, policies, or approval thresholds change, Change Management (Automation View) helps keep documentation, testing, and user guidance aligned.
Separate maker and checker access for sensitive finance actions.
Set approval thresholds by amount, account, entity, and transaction type.
Maintain complete approval comments and supporting documents.
Review approval logs during close and audit preparation.
Use Automation Continuous Monitoring to track approvals, exceptions, and pending items.
Summary
Maker checker automation separates transaction preparation from independent review using configured roles, approval thresholds, and audit trails. It supports journals, payments, vendor changes, customer credit decisions, expenses, and master data updates. With clear ownership, strong testing, and continuous monitoring, it improves financial control, operational efficiency, cash flow visibility, and business performance.
