Version: Current

Understanding Budget Exceptions (Over, Out of, Off Budget)

Budget exceptions are flags automatically raised by Zudello when a transaction's impact on a budget violates predefined rules. These exceptions serve as alerts and can trigger specific compliance workflows.

Common Exception Types:

Over Budget:
- Trigger: Occurs when allocating a transaction causes the total allocated spend (Actual + Committed + Pending + New) for a specific budget line to exceed the budgeted amount for the relevant period.
- Evaluation: The comparison uses the budget's configured evaluation method (Current, Rolling, or Total).
- Purpose: To flag instances where spending limits are breached. This is the most common exception.
Out of Budget:
- Trigger: Occurs when a transaction's coding matches the dimensions of a budget line, but the transaction's date falls outside the start and end dates defined for that budget period.
- Purpose: To flag spending coded to a budget category but occurring outside the planned timeframe (e.g., project spend after the project end date).
Off Budget (Potential/Future):
- Trigger: Might occur if a transaction matches some required dimensions for a budget but not all of them (e.g., matches the Project but uses a GL Account not budgeted for that project).
- Purpose: To flag potentially miscoded transactions that align partially with a budget but don't fit into any specific budget line. Note: Implementation details may vary.

Handling Exceptions:

When an exception occurs, Zudello typically:

Displays visual warnings (banners, icons) on the transaction.
May require users to enter a reason upon submission.
Can trigger specific approval workflows via automations based on the exception type or remaining amount.

Understanding these exception types helps interpret warnings and configure appropriate compliance workflows.