Precoro recognizes your available budget amounts and allows you to create Purchase Orders and Invoices only if there is room in your Budget.
This is a form of Budget protection made to restrict discretionary spending and identify resources available for future purchases.
TABLE OF CONTENTS
- Calculating the Available Budget Sum
- Tracking the Available Budget Sum in Purchase Order and Invoice Documents
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.
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 Order and Invoice Documents
You will be informed if the Budget is exceeded when approving Purchase Orders or Invoice documents. The notification is available in:
- Approval Letter
- Show Document page
- Document preview mode.