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Version: Current

FAQ: What happens if a transaction exceeds the budget? (Budget Exceptions)

When a transaction allocated to a budget causes spending to exceed the defined limits or violate other budget rules, a Budget Exception occurs. Zudello uses these exceptions to alert users and potentially trigger specific workflows.

Types of Exceptions:

  • Over Budget: The most common exception. Occurs when a transaction causes the allocated spending (Actual + Committed + Pending + New) to exceed the Budgeted Amount for the relevant period/total (evaluated based on the budget's method - Current, Rolling, or Total).
  • Out of Budget: Occurs when a transaction matches a budget line's dimensions but its date falls outside the budget's defined time period.
  • Off Budget (Potential): Might occur if a transaction matches some but not all required dimensions for any budget line (e.g., matches Project but not the required GL Account for that budget).

How Exceptions are Handled:

The exact handling depends on your team's configuration, primarily using Automation Sentences:

  1. Visual Alerts:
    • A Warning or Error banner might appear at the top of the transaction document.
    • An icon (often yellow or red hazard sign) might appear next to the budget impact display or relevant lines.
    • The Budget Card View might highlight the negative remaining amount.
  2. Reason Required: When submitting a document with a budget exception, users are often prompted to enter a mandatory Reason explaining the deviation. This reason is logged for approvers and audit trails.
  3. Workflow Routing (via Sentences): Sentences can be configured to detect budget exceptions (using conditions like Budget Remaining Amount Local < 0 or Budget Exception Type Is Over Budget). Based on the exception, the Sentence can:
    • Route for Specific Approval: Assign an approval step to the Budget Owner or a finance group instead of (or in addition to) the standard DOA/manager approval. See Configure Budget Approval Workflows.
    • Change Status: Move the document to a specific status like BUDGET_REVIEW.
    • Add Note: Automatically add a note indicating the type of exception.
  4. Blocking (Optional): While often configured as Warnings, severe budget exceptions could potentially be configured (via Sentences or future dedicated rules) to trigger an Error level validation, blocking submission or approval until resolved.

Essentially, budget exceptions act as flags that provide visibility and trigger automated compliance workflows defined by your organisation.

See Configuring Budget Exceptions.