Control Spending

Wasting Money is Scary for SMBs

FRIDAY-THE-13THWasting money is pretty scary for most small and medium size businesses.

It’s hard enough to run a profitable business these days, without having to worry about your staff spending money that they shouldn’t be.

Get control of your spending and see where the money is going, with SpendMap’s free Purchasing Management Software.

Happy Friday the 13th.

 

How rejected requisitions affect budgets in your free Purchase Order Software

David works at a government agency in Texas and was wondering why rejected requisitions still show as commitments to the cost center’s budget.

Based on the settings in the Requisitions and Approvals Module, rejected requisitions will stay in the budget temporarily because often the Requisitioner will modify and re-process the requisition (e.g. try again with a different item or otherwise clean up whatever the Approver didn’t like).  So SpendMap will keep the budget “reserved”, to avoid that part of the budget being picked up by someone else, and therefore reduce the chance that the original Requisitioner will be “out of budget” when they try again.

But if they don’t want to try again, they can either 1) delete/cancel the requisition, or 2) there is a setting to “auto-delete” rejected requisitions after a certain number of days, which will eliminate that additional step, or if the user just forgets to cancel the Requisition.  You can find that “auto-delete” setting in here…
– REQUISITIONS AND APPROVAL > Setup system > Miscellaneous settings

Reminder:  Users will see rejected requisitions the next time they go into their Requisition Work Area.  If you would like to be a bit more proactive, just enable this e-mail notification…

Rejected requisition email notification

Achieve Budget Compliance with Free Purchase Order Software

As a follow-up to the Success Story that we posted about Managed Care Systems last May, Eric was kind enough to send us this note…

Thanks for sharing, Eric!

Control spending to save money

Sent: Wednesday, January 22, 2014 1:30 PM
To: SpendMap
Subject: Good news

The numbers are in for last year. Because of SpendMap, we were under budget for 2013 by approximately 30,000 dollars!

For the past 5 years, we were over budget every year, by significant amounts.

Just wanted to share the great news with you.

Eric Jeffers
MCS, LLC

When Purchase Orders Beat P-cards

P-Card-TrapWe hear stories like this all the time.  Companies get tired of the paperwork and administrative effort of Purchase Orders and so they switch to Purchasing Cards (p-cards) to make things easier.

Often the p-card programs start off well and employees follow the guidelines (e.g. only to be used for low-value purchases, etc.).  But inevitably things start to “creep”, and before you know it the cards are being used to buy everything, and then you’ve lost control of spending.

But the good news is, with the free version of SpendMap, you can get the tight internal controls that can only be achieved with a proper Requisition and Purchase Order process, while significantly reducing the paperwork and administrative burden compared to your Grand Daddy’s old paper Purchase Orders.

Sometimes, when it comes to your company’s spending, there is such a thing as “too convenient”.

New Expense Reimbursement Requests in 2014 Release of SpendMap

We are happy to officially announce the new Expense Reimbursement Approval functionality as part of the 2014 release of SpendMap, which also includes more than a dozen other new features and capabilities.

Companies usually spend money in two ways; either employees process Requisitions and Purchase Orders, or they just spend their own money and expense it later. By adding Expense Reimbursement Requests to our world-class e-procurement toolset, we are empowering our clients to capture and report on all non-payroll spending in one place.

With the new Expense Reimbursement approval features in SpendMap (sometimes called Expense Management, Expense Reporting, Travel and Expense, or T&E), you can replace your paper or Excel-based “expense sheets”, to reduce paperwork, accelerate the approval process, and simplify reporting for employee expense reimbursements.

expense reimbursements and approval

Much like Purchase Requisitions in SpendMap, Expense Reimbursement Requests can be routed for online approval based on predefined business rules, to ensure that proper approvals are obtained for every expense, every time, and Managers can receive automatic e-mail notifications of pending Requests.  Complete expense details are at the Approver’s fingertips, including previous spending history, up-to-date budget status, as well as a copy of any scanned receipts.

Once approved, SpendMap can send a “check request” to the Accounting, ERP or Payroll System to issue payment to the employee, with no duplicate data entry.

In addition to eliminating paperwork and accelerating the approval process, approved Expense Reimbursement Requests will update spending history, budgets, and many other areas of SpendMap.

Stay tuned for more details about the 2014 release in the new year…

Buying services with your free Purchase Order Software

Joe works in the housing development industry in New Jersey and was wondering if he can use SpendMap to buy electrical services.

Sure thing Joe.  SpendMap can be used to manage Purchase Orders for all kinds of services, just as easily as physical products.  And there’s actually not much difference in the process.

So using your example of buying “one hour of installing electrical outlets”, you might want to set up a unit of measure as “HOUR” in the Units of Measure Master File, and then you can use that UoM on the PO. So just like you would buy 1 EACH of a physical product, you would buy 1 HOUR of the service.

Another Unit of Measure that I see people use commonly for services is “LOT”. That is, rather than specifying the number of hours as the quantity for the order, they would buy “1 LOT” of services (e.g. Quantity: 1, Unit: LOT, DESCRIPTION: Complete installation and configuration of PC). This obviously makes sense when the number of hours is unknown and/or if there is a fixed price for the complete service. You can actually see a sample of this in the Evaluation Copy of SpendMap…just log in as the user “FULL”, and check out PO #10026 in that user’s PO Work Area.

With respect to the Item Master File, you may or may not decide to use that for services like this. For example, if you want to keep track of the history of all the times you bought that “electrical service”, by all means add an item to the Item Master as “Misc. Electrical Services” or something like that, and then pick that item each time you order those services, after which you can see the history of that service using this…
– PURCHASING > Status & Inquiries > Item History

That said, it’s also quite common to not use the Item Master for services, and just do a “one-off” instead. You can learn about that in the subsection “Using One-Offs”, in this section of the Online Help…
– System-Wide Features and Information > Master Files > About Master Files

Finally, you may want to consider the receiving process when buying services.  Many SpendMap customers do use the Receiving Module to indicate that the services that they purchased were “delivered” (i.e. completed).  While there’s no physical product to receive, you are nevertheless receiving the service, so you might want the status of the Purchase Order to reflect that, and of course if you’re using the optional Invoice Approval Module, you’ll want to know that the service was in fact delivered before paying the invoice, just like a physical product.

That said, it not uncommon to skip the receiving process for services.  If that’s your preference, you can just wait for the invoice to show up and you can do a two-way match (PO > Invoice) instead of a three-way match (PO > Receipt > Invoice), or you might want to check out the Auto-Receiving feature in SpendMap, which can automatically receive Purchase Orders for services on their delivery dates, without having to enter receipt transactions manually.  You can learn more in this section of the Online Help…
– RECEIVING > Utility > Auto-receive POs