A letter approving expenses incurred are usually written by a company official in response to a request for reimbursement from an employee. Alternately, they may also approve an employee’s request for a particular expense. These letters are usually brief and to the point, since their main purpose is merely to inform the concerned party that request has been approved. The letter should also provide information as to how the expenses will be reimbursed and what further actions the employee needs to take (i.e. present receipts or itemized estimates to the accounting office).

The letter should begin by stating that the expense has been approved by the office or by management and then outlines what the employee has to do next. They are essentially formal in tone, although they can be more cordial or even congratulatory depending on context in which the expense is being requested. The letter writer does not need to offer any explanation for why the request was approved, although they may do so if they believe it is appropriate. In some cases, if the amounts are small enough, reimbursement may already be enclosed with the approval letter in the form of a check made out to the recipient. Copies of the letter should also be provided to other concerned parties such as the accounting department and other company officials.

The approval letter should be clear as to what particular expense is being approved and the extent of the approval. For example, if the employee is requesting approval of a certain amount to purchase four new printers and only part of the expense is approved, the letter should clearly state this. If there are any conditions related to the approval, they should also be communicated clearly so the recipient will know what to do.

Here is a sample of a letter approving payment for incurred expenses.

Sample Approval Letter

[Date]

Dear [name]

In response to your request for [amount] for [expense], we are pleased to inform you that your request has been approved. Your initiative on this matter is much appreciated on our part. Please send the receipts to accounting as soon as possible so that they can be settled.

Respectfully yours,

[Name]
[Position]