The following article pertains to Legacy Budgets. See this article for our new Budgets Version.
See this article for how to identify which version of budgets your domain is currently using. If you wish to upgrade from Legacy Budgets to our New Budgets, please reach out to a Procurify representative.
Contents:
Procurify's Budget tracking is designed for easy tracking of organizational spending. This provides your stakeholders with insight into your spending before it reaches your accounting teams, and enables for better fiscal planning.
Budget Overview
Budget: The amount of your allotted Budget within the current period.
Committed: A combined total of all three buckets(Approved, Purchased, and Billed).
Remaining: This number will be your remaining Budget after the deduction of the Committed amount.
Spend Pipeline
The bar provides a visual breakdown of the current values. You will also see that there is a marker for the "Budget", which indicates how close you are to meeting or exceeding your budget. The "Budget" marker shifts left to show how much the budget has been exceeded.
Pending Spend
As Requests are submitted, the Pending spend reflected within the Budgets Spend Pipeline increases. This is the very first bucket within the Spend Pipeline. All Pending Order and Expense Requests will account for your Pending amounts.
Approved Spend
When a Request is approved, the Pending spend is converted into Approved spend, as we move into the second bucket of the Spend Pipeline.
The Committed amount is a combination of the Purchased spend, as well as the Approved spend. Therefore, the Committed amount will also update as Requests are approved.
We can see that for account code 3000, $35,000.00 of the Pending spend has become Approved spend, and is also reflected within the Committed amount.
Purchased Spend
After approved items are added to a Purchase Order, Approved spend becomes Purchased. We can now see that there is $15,000.00 of Purchased spend, and the Approved spend reflects the remaining $20,000.00 that had also been approved, but not yet purchased.
For the last two examples, we can see that the total amount Committed to the Budget is the same, and both are sitting at $35,000.00 / $100,000.00.
Changes to the cost of items made during the purchasing process will be reflected in the Budget. I.e., if an Item is approved for $10, but is corrected to $15 in the Purchase Order, the Committed and Purchased amounts within the Spend Pipeline will reflect the updated $15 cost.
Billed Spend
Once the items have been placed on an approved Bill within the Accounts Payable section of Procurify, the amount moves into the Billed bucket. We can see that as the Billed total increases, the Purchased amount will decrease as the costs move into the final bucket within the Spend Pipeline.
Adjustments made to the costs of Billed items will be reflected in real time. If a $10 item placed on a Purchase Order is billed at $20 in an approved Bill, the Committed and Billed amounts within the Spend Pipeline will reflect the $15 cost, rather than the $10 that was initially added to the PO.
Reallocations
Since our Budgets are intended to reflect the most accurate information, it's important to discuss how reallocating Account Codes within Bills can affect your spend tracking.
Changes made in Account Code reallocation will be reflected in real-time. The following are a few details we think you should take note of when making these changes:
Reallocating a Billed Item to a different Account Code
The Committed amount for the Billed Item will be removed from the original Budget, and as long as the new Account Code has an active Budget, it will be reallocated to the Budget of the newly selected Account Code.Splitting the Billed Items allocation across multiple Account Codes
Depending on how the costs are allocated between the Account Codes, and as long as the Account Code(s) have an active Budget, the Budget for each Account Code will be updated accordingly.
This is intended to provide your tracking team with the most accurate reporting, as well as your Approval Groups with the most up-to-date information when making decisions about their departmental spending.