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Version: Current

Understanding Budget Impact Categories

Zudello categorises spending against your budgets to provide a clear picture of your financial commitments at different stages of the procurement lifecycle. Understanding these categories helps you interpret budget usage accurately.

Best practices​

  • Review all spend categories, not just Actual Spend, for a complete view of budget impact.
  • Ensure document statuses are managed correctly (e.g., POs moved to Placed/Completed, Invoices moved to Completed) for accurate categorisation.
  • Use the Budget Card View for real-time visibility of these categories against transactions.

Budget Impact Categories Explained​

When Zudello evaluates how transactions impact a budget line, it allocates the transaction's value (total_exclusive_local) into one of the following categories based on the transaction's Submodule and Status Type:

  1. Actual Spend:

    • Represents: Finalised costs that have been fully processed and typically posted to your general ledger.
    • Includes: Transactions in a COMPLETE status type.
      • Purchasing > Invoices (Status Type: COMPLETE)
      • Purchasing > Credits (Status Type: COMPLETE) - Note: Credits reduce Actual Spend.
      • Expenses > Expenses (Status Type: COMPLETE) - Future functionality.
    • Impact: Directly reduces the remaining budget.

  2. Committed Spend:

    • Represents: Spend that your organisation has formally committed to but hasn't yet been invoiced or fully processed.
    • Includes: Transactions in a COMPLETE or PENDING status type that signify an external commitment.
      • Purchasing > Orders (Status Types: COMPLETE, PENDING - e.g., Placed, Partially Received, Received, Partially Invoiced, Invoiced Not Received)
    • Impact: Reduces the available budget alongside Actual Spend. Zudello automatically deducts amounts already invoiced (Actual Spend) from the corresponding PO's contribution to Committed Spend to avoid double-counting.

  3. Pending Spend:

    • Represents: Spend currently undergoing internal approval processes before becoming Actual or Committed Spend.
    • Includes: Transactions in an APPROVAL status type.
      • Purchasing > Requisitions (Status Type: APPROVAL)
      • Purchasing > Orders (Status Type: APPROVAL)
      • Purchasing > Invoices (Status Type: APPROVAL)
      • Purchasing > Credits (Status Type: APPROVAL) - Note: Pending Credits increase the available budget.
      • Expenses > Claims (Status Type: APPROVAL) - Future functionality.
    • Impact: Reduces the available budget alongside Actual and Committed Spend.

  4. New Spend (or Under Review Spend):

    • Represents: Spend captured in Zudello but not yet submitted for approval or fully validated. This gives visibility into potential upcoming spend.
    • Includes: Transactions in a REVIEW or ACTIVE status type (e.g., statuses like User Review, Ready, Draft).
      • Purchasing > Requisitions (Status Types: REVIEW, ACTIVE)
      • Purchasing > Orders (Status Types: REVIEW, ACTIVE)
      • Purchasing > Invoices (Status Types: REVIEW, ACTIVE)
      • Purchasing > Credits (Status Types: REVIEW, ACTIVE) - Note: New Credits increase the available budget.
      • Expenses > Expenses (Status Types: REVIEW, ACTIVE) - Future functionality.
    • Impact: Reduces the available budget alongside Actual, Committed, and Pending Spend.

Calculation Summary​

Remaining Budget = Budget Amount - (Actual Spend + Committed Spend + Pending Spend + New Spend)

(Note: Credits have a negative impact, effectively increasing the remaining budget).

Need help?​

Contact your organisation administrator or Zudello support if you have questions about how specific transactions are categorised or how budget impact is calculated.