Procurify's Budget tracking is set up in a way that allows a team to track their spend throughout its journey. This allows greater insight into how fast your spending takes before it reaches your Accounts Payable teams, as well as allowing them to foresee these costs before an Invoice is even received.
To understand the journey your spending takes within Procurify, it's best to first break the Budget down into sections. Below we will go over these areas of the visual appearance, as well as what information you can gather from them. After that, we'll dive a bit further into what the path looks like within the Spend Pipeline.
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.
Billed: Purchased items that have been placed on an approved Bill within the Accounts Payable section of Procurify.
Purchased: The combined total of Order Request items that have been placed on a Purchase Order, as well as approved Expense items. Items in this category have not yet been added to a Bill.
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 four buckets for classifying spend. They are Pending spend, Approved spend, Purchased spend, and Billed spend. We'll discuss each of these buckets below as we start spending.
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.
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 remaining $20,000.00 that had also been approved, but has not yet been 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.
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.
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.
If you are reallocating Billed Items to different Account Codes, these changes can have an impact within your live Budgets. 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.