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Version: Current

FAQ: How does Zudello track spending against budgets?

Zudello tracks spending against budgets by automatically allocating relevant transaction amounts to configured Budget Lines.

Here's the process:

  1. Budget Configuration: You first need to create and activate budgets in Zudello. Each budget contains Budget Lines, where each line defines:
    • A specific combination of Dimensions (e.g., Department "Sales" + GL Account "4500").
    • A Time Period (e.g., July 2025, Q3 2025, FY2025).
    • A budgeted Amount for that dimension combination and time period.
  2. Transaction Coding: As transactions (Invoices, POs, Requisitions, Expenses) are processed in Zudello, users code them with the relevant dimensions (Department, GL Account, etc.) on the transaction lines.
  3. Matching Logic: When a transaction is saved or processed, Zudello checks its lines:
    • For each transaction line, Zudello looks at its coding (e.g., Department "Sales", GL Account "4500") and its date (date_issued).
    • It searches through all Active budgets to find a Budget Line where all configured dimensions match the transaction line's coding and the transaction date falls within the budget line's time period.
  4. Allocation: If a matching Budget Line is found:
    • Zudello allocates the transaction line's value (total_exclusive_local - amount excluding tax, in local currency) to that Budget Line.
    • The allocated amount is categorised into a specific Spend Category (Actual, Committed, Pending, New) based on the transaction's type (Submodule) and Status Type. See Understand Budget Impact Categories.
  5. Calculation & Display: Zudello aggregates all allocated amounts for each Budget Line and calculates:
    • Total Allocated Amount (sum across all spend categories).
    • Remaining Amount (Budget Amount - Allocated Amount).
    • This information is displayed in the Budget Card View on transactions and used in future budget reporting.
  6. Exception Triggering: If the allocation causes the Remaining Amount to become negative (or other configured rules are met), a Budget Exception is triggered, potentially leading to warnings or specific approval workflows.

Essentially, Zudello links transactions to budgets based on matching coding dimensions and dates, then tracks the cumulative impact against the budgeted amounts.