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:
- The Purchase Order system does not have a feed to the
- Purchase Orders are treated as lump sums in the budget.
- 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.
- 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