With 14 years of experience refining best practices, BirchStreet has compiled a variety of problems that our customers have faced. This is the second case study in the series and the following issue was all solved by BirchStreet’s procure-to-pay functionality. This will be an ongoing series of solutions to the challenges in hopes that we may be able to help improve your business and operational processes.
Problem: Over budget with inaccurate checkbook entries
Scenario: The customer used monthly budget Excel spreadsheets and balanced their checkbook against each expenditure. However, quite frequently, unplanned purchases, especially with small, local suppliers and payments with cash were often forgotten to be added into the spreadsheet manually. Similarly, invoices from the smaller suppliers were sometimes not submitted in a timely manner, which threw off the monthly budgets.
Solution: The customer implemented BirchStreet’s procure-to-pay (P2P) platform using eProcurement and AP 3-Way Auto-Matching modules. Immediately, all purchases – from large and small suppliers – were tracked within the system and accurately coded to the correct GL codes (which were pre-loaded). When an expense occurred, the checkbook functionality showed the user and approver the following detailed categories: Forecast, Consumed, Approved, Available, Approval Pending, New/Unposted and Theoretical Balance. The system also color coded the expense amount to show if there was less than 10% of the budget remaining (red “X”), 30% or less of the budget remaining (yellow) or 30% or more of the budget remaining (green). Not only did the system show all the possibilities but gave visual cues too. Budget and checkbook compliance improved upon go-live of BirchStreet and the customer had accurate budget records.