Configuring Budget Exceptions

Ensure budget compliance by automatically identifying and flagging transactions that breach predefined budget rules. This guide explains how to configure budget exception rules in Zudello.

Best practices

• Define clear exception rules based on your organisation's policies (e.g., tolerance for overspending, handling of spending outside budget periods).
• Link budget exceptions to specific approval workflows in Sentences to ensure proper oversight.
• Use distinct exception types (Over, Out of, Off Budget) for clarity in reporting and routing.
• Regularly review exception triggers and adjust thresholds as needed.

Understanding Budget Exceptions

Budget exceptions are rules that automatically flag transactions when certain conditions related to a budget are met. Zudello uses these exceptions to:

• Alert users visually on the transaction screen (via banners and icons).
• Provide context for approvers.
• Trigger specific automation workflows (Sentences) for routing or notification.

Zudello supports three main types of budget exceptions:

• Over Budget: Triggers when a transaction causes the allocated spending for a specific budget line (evaluated based on the budget's method - Current, Rolling, or Total) to exceed the budgeted amount for that period/total.
• Out of Budget: Triggers when a transaction matches the dimensions of a budget line but its date falls outside the defined start and end dates of the budget period it would normally apply to.
• Off Budget: Triggers when a transaction matches some but not all of the required dimensions for any line within a specific budget. (E.g., matches the Project but not the required GL Account for that Project's budget). Note: This type might be deferred or require careful configuration.

Configuring Exception Rules

Budget exception rules are typically configured globally or potentially per budget, defining the conditions under which an exception is triggered.

Current Implementation (Simplified - via Sentences):

As of the current documentation, dedicated configuration screens for budget exceptions might not be fully implemented. However, you can achieve the effect of budget exceptions using Automation Sentences.

1. Create a Sentence: Navigate to Settings > Automations and create a new Sentence.
2. Set Trigger: Use a trigger like When a resource is updated or When a resource status has changed (e.g., to READY or APPROVAL). Select the relevant Module/Submodule (e.g., Purchasing/Invoice).
3. Add Budget Conditions: Use conditions to check budget-related fields on the transaction:
   • Check for Over Budget:
     • Field: Budget Remaining Amount Local (or Budget Remaining Amount)
     • Operator: Less than
     • Value: 0
     • (Optional) Add conditions for Budget Name or specific Budget Dimensions if the rule should only apply to certain budgets.
   • Check for Out of Budget: (Requires comparing transaction date to budget dates - might be complex in Sentences)
     • This might require dedicated backend logic or more advanced Sentence capabilities.
   • Check for Off Budget: (Requires checking if some but not all budget dimensions match - likely complex in Sentences)
     • This might require dedicated backend logic or more advanced Sentence capabilities.
4. Define Actions: If the conditions are met (an exception is detected):
   • Set Status: Move the document to a specific review status (e.g., BUDGET_REVIEW).
   • Add Note: Add a note indicating the type of budget exception.
   • Assign User/Group: Assign the document to the relevant budget owner or finance team member.
   • Get Approval: Trigger a specific approval workflow for budget exceptions.
5. Save Sentence.

Future Implementation (Dedicated Configuration):

A future implementation might involve a dedicated section (e.g., Settings > Budgets > Exceptions) where you can define rules more directly:

1. Select the Exception Type (Over, Out of, Off Budget).
2. Define the conditions (e.g., "Remaining Amount < 0", "Transaction Date outside Budget Period").
3. Specify the outcome (e.g., "Require Reason", "Trigger 'Budget Exception' Flag", "Show Warning Message").
4. Link the exception rule to specific budgets or apply globally.

User Experience

When a transaction triggers a configured budget exception (via Sentences or future dedicated rules):

• Users might see warning banners or icons on the transaction screen.
• The transaction might be automatically routed to a specific status or user for review.
• Approvers might see the exception details noted in the approval flow or notifications.
• Users might be required to provide a reason when submitting a transaction with an exception.

Need help?

Configuring budget exceptions, especially using Sentences, requires careful planning. Contact your organisation administrator or Zudello support for assistance in setting up rules that match your company's budget policies and approval requirements.