Budgets

Budgets

Within the Procurement module, there is the option to work with alerts for exceeding a budget. This is a setting that can be enabled by a ProActive consultant or the Support department. If enabled, as an Application Manager or within the procurement department, you can set a budget based on general ledger accounts and/or cost centers. When an order is created on a general ledger account or cost center that exceeds the budget, the Spend Cloud will provide a warning notification.

Working with budgets

Within the Spend Cloud, you can, based on the settings, choose to create budgets based on cost centers or general ledger accounts. When an order is posted in the Spend Cloud on one of these cost centers or general ledger accounts, it will be deducted from the budget.

When creating an order exceeds a budget, a warning is displayed:



The notification is only a warning; the requester always retains the option to proceed with sending the order. 

Creating a Budget

To create a budget, navigate to Application Management > Procurement > Budgets. Click 'Add' to create a budget. Based on the settings, you can choose a budget based on a general ledger account and/or a cost center. Choose the name of the budget, optionally the administration, the cost center or general ledger account on which you want the budget to be deducted, and the budget amount.

When creating the budget, you also have the option to enter an amount for external depletion. This amount represents costs not processed in the Spend Cloud. The amount entered here is subtracted from the total budget. For example, if you set a budget amount of €5000 and an external depletion amount of €500, purchase orders can deduct €4500 from the budget before the warning is given.

Specify whether the budget should be spread over a year, four quarters, or twelve months. For example, if you set a budget of €12,000 (without external depletion) and distribute it over quarters, a notification will be given in the first quarter when more than €3000 is posted on the respective general ledger account or cost center.

Finally, indicate whether you want to include the current month in the deduction calculation (select 'Up to period') or up to the previous month (select 'Period').

If you wish to import a large number of budgets at once, you can create an import definition for this purpose. For more information about import definitions, click here