Stop budget overruns with proactive and efficient budget management

This budget management module makes it possible to perform a budget check when preparing an order form and reserve an amount in the provided/available budget. This means that organisations have a clear overview of the available budget and the expenses that can still be incurred without exceeding the budget.

One of the main advantages of the budget management module is that it provides automatic alerts when a purchase request falls outside the available budget. Here, the budget holder is notified so that he or she can take appropriate action. In this way, surprises afterwards are avoided.

The module offers various functionalities, such as uploading or adjusting budgets by the customer in RecoMatics Document Suite, separate budget lists per internal company where each budget is linked to a general ledger account, period and optionally 2 additional dimensions, and the possibility to spread budgets over different months within a period. When each purchase order is created, 1 or more general ledger accounts are selected and the purchase order amount is automatically deducted from the available budget for that account.

Approval follows the standard approval matrix if the planned expense remains within budget. If the planned expense would lead to a budget overrun, the task is placed with the budget manager for further approval. In this case, this person may decide to make a budget adjustment to still have the purchase order approved according to the approval matrix. Purchase orders that are rejected result in a release of the reserved amount in the budget.

Incoming invoices that cannot be linked to a purchase order are also deducted from the budgets after allocation of general ledger account. In this way, all amounts are charged.

After invoicing and closing, order forms sometimes still have an outstanding amount. This balance is naturally also released back into the budget. The budget management module also offers reporting of budgets, linked purchase orders and invoiced amounts.