This article is divided into the following sections:
What is budgeting?
Orders, invoices, and budget
How to create a budget?
Budget overview
Budget detail
Manual and automatic budget assignment
Creating an order and assigning a budget
User permissions for budgets
Notifications for budgets
Event history and budget
What is budgeting and why is it useful?
Budgeting is a useful financial management tool. It allows companies to plan expenses, track their actual spending, and react quickly to deviations from the plan. This ensures that the company's resources are used efficiently and that budgets for projects or departments are under control.
Orders, invoices, and budget:
Orders are a key element of budget management:
When an order is created, a portion of the budget is blocked as "Ordered",
After receiving an invoice linked to the order, the amount is moved from "Ordered" to "Spent".
This creates an accurate overview of how much of the budget has already been spent, how much is committed to orders, and how many free funds remain.
How to create a new budget?
In the left menu in the Finance section, go to the Budget section. Here you can create your first budget.
In the following table, you must enter the name of this budget.
You can select or create a group of budgets. This is an effective way to organize and sort individual budgets.
You can then specify the cost center to which the budget applies. At the same time, you can automate the assignment of documents to this budget based on a specified cost center.
The Disable budget overdraft button then determines whether or not it will be possible to add documents to the given budget that would exceed the specified limit with their amount.
The budget period is always set for 12 months according to the specified accounting period. You can edit the accounting period in Settings -> Organization Profile. Selecting the accounting period is a mandatory item when creating a budget.
Access to the budget then determines which users will be able to view the budget. All users who are not budget managers and should see the budget must be added in this section.
After configrming all your choices, a new window will open, where you can enter the budgets for individual months in the given period. Alternatively, you can enter an amount for the entire period, and it will be recalculated evenly over the whole period.
Budget overview
In the overview of all budgets, you will see a clear table of individual budgets.
The spending status is then displayed as a percentage in the status bar.
By selecting the more options button, you can then edit, copy, or delete the budget.
Budget detail:
Budget detail is divided into several sections:
Basic information - name, access, period, currency, access to settings.
Overview of the total spending status and a graph of spending within individual months. By clicking on a month in the graph, you will display the relevant documents linked to this budget for that month.
In the lower part of the overview, the user are able to see documents from the given budget and period. Documents are displayed according to the document access settings.
Manual and automatic assignment of documents to a budget
Manual assignment
To assign a document to a budget, first open the document detail. Afterwards, go to the Budget section and click the Add budget button.
After you confirm you want to add a budget, a new menu will open. Here, select the period and budget. You can enter either the total amount of the document or just a part of it.
The document will then display the link and the budget spending status.
Automatic budget assignment
To set up automatic budget assignment, go to Settings -> Workflow automation.
After clicking on a specific document processing workflow, you can add an automatic intermediate step for adding a budget.
A budget can be assigned automatically according to the cost center set on the budget, if it matches the cost center on the document header. You can also define your own conditions for budget assignment, e.g., based on the supplier's ID number.
Assigning a budget when creating an order
In the order creation form, in the budget section, select the desired budget.
The order will be assigned to it immediately after creation.
Permissions and access rights for budgets:
To set permissions for working with budgets, go to Settings -> Roles and permissions -> Roles --> Select a Role, or create a new one.
For the given Role, you then have these setting options:
Manage budgets – Has full access to creation and editing.
Assign documents to budgets – Has the ability to link invoices, orders, and receipts to budgets.
A user without permissions sees only limited information.
Notifications for budgets
In the notification settings, you can activate notifications for budget overdrafts (total and monthly).
Event history:
Every change in the budget on a document is also recorded in the event history of that document, so that all changes are verifiable.
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