Calculating and Tracking the Available Budget Sum

In Precoro Budget module has flexible settings that will suit any workflow:

• You can set limits to recognize your available budget amounts and allow users to create Purchase Orders and Invoices only if there is room in your Budget. This form of Budget protection is made to restrict discretionary spending and identify resources available for future purchases.
• You can also allow exceeding the established Budget for your users. In this case, the document Approvers will be notified of the Budget overrun.

TABLE OF CONTENTS

• Calculating the Available Budget Sum
• Tracking the Available Budget Sum in Purchase Orders and Invoices

Calculating the Available Budget Sum

Available sum = Budget sum – the sum of the Purchase Orders that do not have Invoices created – the sum of the Invoices created manually (without Purchase Orders) – the sum of the Invoices created from a PO – the sum of the Purchase Orders available for further Invoice creation.

Example: 

The budget amount is 5,000 USD. Invoices for 500 USD are created from Purchase Orders, Invoices created manually equate to a sum of 250 USD, and Invoices created from POs equate to 1,750 USD. Additionally, we have 1 Purchase Order for a total sum of 1,000 USD, but only one Invoice was created for it with a value of 550 USD, although the PO sum for this Invoice was 500 USD. 

In this example, the budget sum will be:

5,000 – 500 – 250 – 1,750 – 550 – 500 = 1,450 USD

Tracking the Available Budget Sum in Purchase Orders and Invoices

If you have chosen to allow Budget exceeding, Approvers will get notified when users create Purchase Orders or Invoice documents that overreach the set Budget.

The notification is available in:

• Approval Letter

• Show Document page

• Document preview mode.