To understand your Budgets within Procurify, it's best to first break them down into two sections. Below we will go over these sections, as well as what information you can gather from them.
A) Budget Overview
Budget: The amount of your allotted Budget within the current period.
Committed: A combined total of your Approved and Purchased spend.
Remaining: This number will be your remaining Budget after the deduction of the Committed amount.
B) Spend Pipeline
Purchased: The combined total of Order Request items that have been placed on a Purchase Order, as well as approved Expense items.
Approved: This is the total value of Order Request items that have been approved, but have not yet been placed on a Purchase Order.
Pending: The cost of Expense and Order Request items that are currently pending approval. This is best used to estimate future spend coming down the pipeline.
Spend Pipeline Bar: The bar itself 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 moving towards the left on the pipeline indicates that you have exceeded your budget.
Let's break this down a bit further. Procurify has three buckets for classifying spend. They are Pending spend, Approved spend, and Purchased spend.
As Requests are submitted, the Pending spend reflected within the Budgets Spend Pipeline increases. This is the first bucket within the Spend Pipeline.
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.
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 $20,000.00 that has been approved, but not yet purchased.
For both of the "Approved Spend" and "Purchased Spend" examples, we can see that the total amount Committed to the Budget is the same, and both are sitting at $35,000.00 / $84,000.00.