Oil & Gas | CAPITAL GOVERNANCE | AFE

AFE Approval & Cost Tracking Management System for Capital Projects

Kissflow routes an Authorization for Expenditure through multi-level approval scaled to its amount and category, then tracks actual spend against the sanctioned figure continuously so a well or facility project never overruns for months without anyone in authority actually seeing the gap.

AFE (Authorization for Expenditure) Approval & Cost Tracking Management System

Trusted by energy operators worldwide

Puma Energy
TotalEnergies
Unioil
McDermott
Essar
Modec

A sanctioned number is not a spending limit unless something checks actual spend against it.

An AFE gets sanctioned for a specific dollar figure to drill a well or build a facility, and from that moment forward the approved number and the actual spend tend to live in different places: the AFE sits in a document, the spend accrues in the accounting system, and the two get reconciled only when someone pulls a report together. A project can run twenty percent over its sanctioned figure for months before anyone with the authority to intervene actually sees the gap, by which point the conversation is about a write-off instead of a course correction.

Kissflow routes the AFE request through justification, a budget check, and multi-level approval scaled to its amount and category, then tracks committed and actual spend against the sanctioned figure on an ongoing basis, flagging a variance while there is still time to act on it rather than at the next scheduled review.

Once a capital idea has already been justified through an earlier business-case stage, it lands here for formal authorization, carrying that justification forward instead of starting the paperwork over from a blank AFE form.

Where an AFE loses its connection to actual spend

Sanction and spend live apart

The approved AFE figure and the accounting system's actual spend are reconciled only on request.

Overruns surface late

A project twenty percent over sanction is discovered at a scheduled review, not as it happens.

Approval routing is manual

Every AFE gets the same approval path regardless of size or category.

No connection to the business case

The justification that got the idea this far is disconnected from the sanctioned AFE.

Six modules. Every AFE tied to a sanction figure and continuous spend tracking.

Configure approval thresholds and spend-variance alerts by category.

AFE request

A capital expenditure is requested with defined scope, category, and an estimated cost, replacing an unstructured document.

Justification and ROI

Cost, expected benefit, and payback are captured directly against the request to justify the sanctioned figure being asked for.

Budget check

The request is checked against approved capital budget before it is allowed to advance to formal approval.

Multi-level approval

The AFE routes through the required approval chain, scaled automatically by its dollar amount and spending category.

Spend tracking vs. sanction

Committed and actual spend are tracked continuously against the sanctioned figure, not reconciled only at scheduled review.

Variance alerting

A spend variance against sanction is flagged early enough for finance and engineering to actually act on it.

From request to system of record in four steps

Submit

Submit

A capital request is submitted as an AFE with defined scope and a detailed estimated cost.

Review

Review

ROI is justified and budget availability is confirmed before the request moves forward.

Approve

Approve

The AFE routes through multi-level sign-off scaled to its dollar size and category.

Record

Record

Actual spend is tracked against the sanctioned figure on the AFE record, with variance flagged early so a well or facility project never overruns for months unseen.

What changes when AFE approval and cost tracking runs on Kissflow

Process
Before Kissflow
On Kissflow
AFE request
A document routed by email
A structured request with justification and cost estimate
Budget check
Assumed
Checked before approval advances
Approval routing
The same path for every request
Based on amount and category
Spend vs. sanction
Reconciled at scheduled review
Tracked continuously
Variance detection
Found after the fact
Flagged while there is time to act
Link to business case
Disconnected
Carried forward from the justification stage
Process Before Kissflow On Kissflow
AFE request A document routed by email A structured request with justification and cost estimate
Budget check Assumed Checked before approval advances
Approval routing The same path for every request Based on amount and category
Spend vs. sanction Reconciled at scheduled review Tracked continuously
Variance detection Found after the fact Flagged while there is time to act
Link to business case Disconnected Carried forward from the justification stage

Connects to your ERP and project cost system; Kissflow does not replace your capital accounting system of record

Kissflow runs the AFE approval and variance-tracking layer. Your ERP stays the system of record for actual capital spend.

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Built for how an AFE actually needs to be tracked against real spend

Sanction and spend, side by side

Actual spend is checked against the sanctioned figure continuously, not at a scheduled review.

Variance flagged early

A drifting project is caught before it becomes a reportable overrun.

Approval that scales with the ask

A small AFE and a major capital project follow different, appropriate approval paths.

Live in weeks

Configure thresholds and alerts in the visual builder, or describe the use case to the AI Builder.

Governed from day one

Role-based access and a full audit trail on every AFE.

One view for finance and engineering

Every AFE's status and spend variance in one place.

We help capital project teams keep actual spend honest against a sanctioned number

McDermott

“If a company cannot enable everybody to use AI, they will never get the true benefit of AI. Platforms like Kissflow allow us to put that capability in the hands of our users in a safe way.”

Vagesh Dave

GVP & CIO at McDermott International, Ltd

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KEY HIGHLIGHTS
5M+
work items processed
5,526
active users
400+
active workflow created without IT dependency
Puma Energy
INDUSTRY Energy
HEADQUATERS USA

“Advanced automation of all processes is easy to set up. I cannot imagine how to manage workflows without this software.”

Tanay Tiwary

Global Head - Digitalization & Business Improvement

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KEY HIGHLIGHTS
700+
Use Cases
73%
Operation Efficiency
1001 - 5000
# of Employees
SN Aboitiz Power Group

“Kissflow supports rapid application development by building a working application prototype in the shortest amount of time.”

Maria Theresa Cabigon

CIO, SN Aboitiz Power Group

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KEY HIGHLIGHTS
451%
ROI
2.8 months
Payback period
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    No. Your ERP stays the system of record for actual capital spend. Kissflow runs the AFE approval and variance-tracking layer.

    Capex Justification builds and screens the business case before a formal request. This app handles the formal AFE approval and tracks spend against the sanctioned figure afterward.

    Yes, committed and actual spend are tracked against sanction on an ongoing basis.

    Yes, thresholds route larger AFEs through additional layers of sign-off.

    A variance alert flags it, giving the project team and finance time to respond.

    Yes, thresholds and templates are configured centrally and applied consistently.

    Configuration and AI-assisted app generation move delivery from a multi-month program to a matter of weeks.

    Kissflow is certified to SOC 1, SOC 2, SOC 3, and ISO/IEC 27001, with role-based access on every record.