iExpense approvals

We have set up iExpenses, entered employees and their supervisors.  Each supervisor has a signing limit. For starters, we have it set up to audit all expenses requiring receipts and we do not allow submission of the expense report without attached imaged receipts.  The issue is that when employees enter and expense report it is going directly to the status of "Pending Payables Approval" and once Payables marks it as verified receipts it goes to Ready for Payment.  So the entire thing is skipping the manager's approval.  I am sure I am missing a check box or field somewhere but