Configuring Budget Approval Workflows

Ensure proper oversight for spending that deviates from planned budgets by configuring automated approval workflows. This guide explains how to use Zudello Sentences to route transactions with budget exceptions for specific approvals.

Best practices

• Define clear approval paths for different types of budget exceptions (e.g., Over Budget vs. Out of Budget).
• Assign approvals to the appropriate budget owners or finance managers.
• Use clear milestone and step names in your Sentences (e.g., "Budget Exception Review", "Budget Owner Approval").
• Combine budget exception checks with standard approval workflows (like DOA) using multiple Sentences.
• Test budget approval workflows thoroughly with sample transactions.

Understanding Budget Approval Workflows

When a transaction impacts a budget, Zudello evaluates it against the configured budget rules (see Configuring Budget Exceptions). If an exception occurs (e.g., the transaction causes spending to exceed the budgeted amount), you can use Sentences to trigger a specific approval process.

This allows you to:

• Route transactions with budget exceptions to designated approvers (like budget owners or finance managers) who might not be part of the standard approval flow.
• Require additional justification or scrutiny for out-of-policy spending.
• Maintain compliance with internal financial controls.

Configuring in Sentences

Budget approval workflows are built using Automation Sentences, typically triggered when a transaction is submitted or reaches a specific status.

1. Navigate to Automations: Go to Settings > Automations.
2. Create or Edit Sentence: Start a new Sentence or edit an existing one (e.g., triggered When a resource status has changed to APPROVAL or READY).
3. Add Budget Condition:
   • Click Add condition.
   • Select the relevant budget exception field:
     • Budget Exception Type: To check for specific exceptions like Over Budget, Out of Budget.
     • Budget Remaining Amount Local: To check if the remaining budget is less than zero (indicating overspending).
   • Choose the appropriate Operator (e.g., Is, Is not, Less than).
   • Enter the Value (e.g., Over Budget, 0).
   • Example Condition for Over Budget: Budget Remaining Amount Local | Less than | 0
4. Add "Get Approval" Action:
   • If the budget condition is met, add a "Get Approval" action (e.g., Get approval from User Group, Get approval from Budget Owner - Note: Budget Owner approval action might be future functionality).
   • Configure the Milestone Name (e.g., "Budget Exception Approval").
   • Configure the Step Name (e.g., "Finance Review for Overspend").
   • Select the appropriate User Group or approver.
   • Configure other step options (Reminders, Escalations, etc.) as needed.
5. Add Subsequent Actions (Optional):
   • You might add an Add Note action explaining the reason for the specific approval route.
   • Crucially, add an And cancel processing action if this budget approval should replace the standard approval flow for this transaction. If it's an additional approval step, omit this action and ensure another Sentence handles the standard flow.
6. Configure "Otherwise" Path (Optional):
   • If the budget condition is not met, you can configure actions in the "Otherwise" section, such as proceeding directly to the standard approval flow (e.g., using a Run Trigger action to start another Sentence).
7. Save Sentence.

Example: Route Over-Budget Invoices to Finance Group

• Trigger: When a resource status has changed (Module: Purchasing, Submodule: Invoice, Status: READY)
• Condition: Budget Remaining Amount Local | Less than | 0
• Action: Get approval from User Group (Milestone: "Budget Review", Step: "Finance Overspend Approval", Approver: Finance Team Group)
• Action: And cancel processing

(This assumes another Sentence handles the standard approval for invoices without budget exceptions).

User Experience

• Transactions meeting the budget exception criteria will be routed according to the configured Sentence.
• Approvers will see the request in their Requests submodule and receive notifications (if configured).
• The approval flow displayed on the document will show the specific budget-related milestone and step names.

Need help?

Designing effective budget approval workflows requires careful planning. Contact your organisation administrator or Zudello support for assistance with configuring Sentences based on your specific budget policies and compliance needs.