A method and system for automated invoice processing. An improved method for invoice processing based on an application service provider model in which invoices can be accessed and approved via the Internet from anywhere in the world. This method and system allows a company to manage the process of storing, reviewing, approving, and paying invoices from a single, centralized application. The invoice processing application is integrated with an accounting or ERP system such that payment can be made automatically and redundant data entry eliminated. The approval hierarchy used by the invoice processing application can be obtained from the human resources system of the client organization.