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    Vendor Control Budgeting

How does your organization manage vendor purchases as they pertain to the budget? If your organization's expenditures on outside vendors is a substantial percentage of the total budget, you may be experiencing a disconnect between vendor management and the budget. Why does this frequently happen? There might be several factors:

  1. The Purchase Order system does not have a feed to the budgeting system.
  2. Purchase Orders are treated as lump sums in the budget.
  3. Purchase Orders are tracked by the Enterprise software but department financial administrators and managers don't have sufficient access, control or understanding of the "big" system to do their Department level jobs in a timely fashion.
  4. The granularity of the overall budget is too big to track the details of purchases.

If some of this describes your situation, you can gain greater control and visibility of the impact of Vendor purchases on your budget by enabling the Vendor Control module in PerpetualBudget. The general concept of how this works is described by the bullet points below.

  • The detail of projects, purchase orders and payments is captured in Data Blocks.
  • Data Blocks are assigned to a structured hierarchy of Project(s) and Object(s).
  • Examples of Object(s) are products, projects, product lines, brands, grants et al.
  • Ultimately, the Data Block data rolls up to one or more line items in the master budget.
  • The program stores project and jobs (Purchase Order) data and automatically calculates changes to the upstream budgdet and project rollups.
  • Use PB as your purchase order system.

You can get more information on how to structure the Vendor Control module in PerpetualBudget by contacting Support@spicer-baer.com.

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Last modified: Friday August 05, 2011.