Glossary

A decision validation layer is the intermediate control layer that sits between raw financial data and execution systems, ensuring that every decision is validated before it becomes irreversible. Rather than allowing data to flow directly from documents or transactions into ERPs, payment tools, or reporting systems, this layer evaluates whether the information is complete, consistent, and safe to act upon.

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In finance operations, the decision validation layer plays a critical role in reducing operational risk. It aggregates inputs from multiple sources, aligns data across systems, applies reconciliation logic, and checks business rules before any action is triggered. This ensures that payments, postings, and closures are based on validated data rather than assumptions or partial checks.

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Unlike traditional workflow automation, a decision validation layer does not focus on speed alone. Its primary function is to gate execution, blocking or escalating exceptions while allowing clean cases to proceed automatically. This model enables teams to scale operations without increasing headcount, while maintaining accountability and audit readiness.

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This layer is increasingly powered by AI agents capable of continuously validating financial data and surfacing only the decisions that require human judgment. Within Phacet, the decision validation layer is a foundational component of the product platform, ensuring that automation only occurs once control has been established.