Issue 13

How to do a Budget Check during Bill and Purchase Order approval

tmp-Konstantin

More often than not, Bill or Purchase Order approval decisions need to consider an allocated budget.

This usually means that Approvers have to contact someone to find out what budget was assigned and how much of that is still available – and then do the maths themselves to figure out if, in terms of budget, the request in hand can be approved or not.

The new ApprovalMax Budget Check feature provides Approvers with all budget-related information, such as the total budget and the remaining amount. This way, a fully informed approval decision can be made quickly and effortlessly.

How it works

1) Budgets are defined in Xero using the built-in Xero functionality

2) Budgets are then uploaded to ApprovalMax via .CSV import

3) ApprovalMax checks each Bill and Purchase Order against a predefined budget and calculates how a finance document pending approval fits in with the remaining amount.

How to set it up

Prerequisite: please ping the ApprovalMax team to switch on this feature for your Company.

1) Download a budget from Xero

Go to Reports > Budget manager, select the budget you want to be tracked in ApprovalMax, and click Export > CSV.

Please note: you can have multiple independent budgets in Xero, and ApprovalMax can track any number of budgets. Just export them all from Xero and upload them to ApprovalMax.

2) Upload a budget to ApprovalMax

Next, the budgets exported from Xero need to be uploaded to ApprovalMax.

Budgeting_Upload

Go to “Budgeting” under your Company in ApprovalMax and click “Upload budget”. Then select the .CSV file that was generated in the previous step.

Please note: a budget in Xero can relate to a particular tracking category, say, Marketing. So, when uploading this budget to ApprovalMax, be sure to select the same tracking category.

3) Make budget tracking visible for Approvers

Now, Approvers can see which budgets are affected by a particular Bill or Purchase Order, and check the budget details.

If a positive approval decision would exceed a budget, the Approver is made aware of that by a notice highlighted in red colour.

Budgeting_RequestThe Approver’s view highlights which budget the request would affect

Budgeting_Check

Budget details – This window shows details of how the request would affect the budget

Coming up next

The ApprovalMax Budget Check feature is evolving and a couple of extensions are planned for a short-term release, for example:

  • An option that allows tracking either “Tax inclusive” or “Tax exclusive” amounts
  • Support for budget checks via the mobile apps

Complementing our Purchasing Solution

The new ApprovalMax Budget Check feature allows tracking the execution of multiple budgets. Approvers can quickly and effortlessly see how particular Bills or POs would affect a budget and make an informed approval or rejection decision on this basis.

The Budget Check feature is a valuable enhancement to the ApprovalMax End-to-end Purchasing Solution, which now covers:

  • PO approval
  • Bill approval
  • Bill to PO matching
  • Reporting on the remaining PO balance
  • Budget check

Why not give it a try? Feel free to sign up on ApprovalMax.com

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About the author

Konstantin Bredyuk, CEO and Co-Founder, ApprovalMax

As an experienced BPM expert, Konstantin has a strong focus on design and development of Business Applications which support Human Workflows. He is Co-Founder and CEO at ApprovalMax, known for simple and easy to configure approval workflows in finance.