Budget management functionality that FOLIO needs to stay competitive (UXPROD-3442)

[UXPROD-2409] Limit percentage of spend by expense classes Created: 27/Apr/20  Updated: 31/May/23

Status: Analysis Complete
Project: UX Product
Components: None
Affects versions: None
Fix versions: None
Parent: Budget management functionality that FOLIO needs to stay competitive

Type: New Feature Priority: P4
Reporter: Dennis Bridges Assignee: Dennis Bridges
Resolution: Unresolved Votes: 0
Labels: acquisitions, finances, needs-ranking, needs-rmsigreview, round_iv
Remaining Estimate: Not Specified
Time Spent: Not Specified
Original estimate: Not Specified

Attachments: PNG File Screen Shot 2020-09-25 at 1.08.51 PM.png     PNG File Screen Shot 2020-09-25 at 1.10.32 PM.png    
Issue links:
Gantt End to Start
has to be done after UXPROD-2362 Shared allocation for budgets Closed
Epic Link: Budget management functionality that FOLIO needs to stay competitive
Front End Estimate: Large < 10 days
Front-End Confidence factor: Low
Back End Estimate: Large < 10 days
Development Team: Thunderjet
PO Rank: 33.1
Rank: Chicago (MVP Sum 2020): R4
Rank: Cornell (Full Sum 2021): R2
Rank: Duke (Full Sum 2021): R4
Rank: 5Colleges (Full Jul 2021): R4
Rank: GBV (MVP Sum 2020): R1
Rank: Grand Valley (Full Sum 2021): R4
Rank: MI State-Lib of MI (Sum 2021): R5
Rank: MO State (MVP June 2020): R4
Rank: TAMU (MVP Jan 2021): R2
Rank: U of AL (MVP Oct 2020): R3

 Description   

Problem: Allocating money to each individual Fund can be time-consuming for an administrator. When using shared pools there are no restrictions/limits on spending by expense class. One group could spend all money before others have a chance too.

Use cases:

  • Librarian creates a shared allocation and once of the codes spends all the money before others are able to make any purchases. More money then needs to be added to the Fund. Other groups feel cheated if the budget can't be increased
  • If user is spending money against a code we are able to restrict their visibility to the specific Budget from which they are spending. They can see how much they have spent and how much is left
  • Manager would like to communicate a target amount for the fund and have it be clear how much has been spent toward that target.
  • When rolling over budgets we want our targets to function as a percentage of the allocated amount. Budgets can drop or increase drastically.
  • Manager wants to set limits for expense classes that would equal more than 100%. This allows each class to spend up to maybe 60 percent of the total but at the end of the day they are restricted to spending 100% of the budget as a group, factoring in allowable expenditure. We don't care which one gets closer to 60% but want to make sure that neither one spends more than 60%
  • User may create one Fund for Endowments and use expense classes to track the specific sources individually. In this case exact amounts need to be set for each expense class to restrict expenditure

Requirements:

  1. Each expense class can view how much money is left and how much they have spent within a given Fund/budget factoring in restrictions
  2. When processing invoices/orders limits are factored into the 'do we have enough money' check
  3. Restriction are NOT required
  4. User can set an Expenditure target for each expense class. Target can be a percentage or amount value.
  5. All values are carried over to the next years budget as is. User can edit them if needed.
    • Note: target amounts may be more manageable. The target values would not need to equal 100% of the budget, they would act as a limit for the expense class but could not be used if the actual budget had already been exhausted.
  6. User can toggle limit expenditure to restrict use of the expense class be less than or equal to it's Expenditure target.
  7. If allowing percentages it is suggested we use Allocation rather than Available. Calculating this may be problematic. Available will fluctuate

Questions:

  1. Would these limits need to persist year over year or would they be reset? Yes it is valuable to not need to start from scratch each year.


 Comments   
Comment by Dennis Bridges [ 21/Sep/20 ]

As the community priority for this feature is increasing, I have updated the PO rank as well. Expense class functionality was enhanced in as a result of UAT and this extension of that functionality will add a lot of value to the feature set. Potentially changing the way users choose to setup their Fund structures.

Comment by Anya [ 25/Sep/20 ]

Will this fundamentally change the functionality of the system ... away from an in-app reporting tool to database structure/design .. ie critical to the workflow ... do we have to mandate the use of expenses classes or can it be optional?

tagging Dennis Bridges

Comment by Dennis Bridges [ 25/Sep/20 ]

Hi Anya the expense classes are in every way optional. Their intention is to allow libraries to track and manage expenditure at increasing levels of detail without having to allocate money at increasing levels of detail.

This feature is an extension that would allow users, not just to track expenditure, but to choose to limit expenditure against some or all expense classes for any given fund. It would still not be necessary to use expense classes nor would it be necessary to limit expenditure for expense classes IF you were using expense classes.

Comment by Anya [ 25/Sep/20 ]

Tagging Former user please see the above

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