For any organization that uses budgets, the challenge is making budgets real. Most organizations are only aware of a budget overrun after producing Income Statements or expenditure reports. The problem with that type of reporting is that the proverbial horse has already left the barn! What started as a tool for fiscal Budget Controller on Black Control Console with Blue Backlight. Improvement, regulation, control or management concept..jpegresponsibility becomes an exercise in “cost justification”, and is not effective. What organizations really need is some means to dynamically link their daily accounting processes to their budget.
Using Intacct’s Spend Management, users are able to directly integrate their Purchase Order process with their budget. Spend Management allows budgets to be monitored at the account, location and even department level. When the user enters a Purchase transaction, they can be warned (or even prevented) from posting the transaction if the amount exceeds the budget. Using Intacct’s new Spend Insight feature, the user can view the details of their budget, total expenditures, and available amount before committing to a purchase decision.
Another new feature of Spend Management is the ability to see committed expenditures against the budget. By including committed expenditures (e.g. approved Purchase Orders) the budget becomes real-time, allowing for better fiscal control and preventing budget overruns. And by controlling expenditures at the purchase order level, Spend Management gives budgetary control at the start of the accounting process, rather than at the end.
Spend Management is an add-on module available to all Intacct users, and the only prerequisite is the Purchase Order module.