◈ EPM/Planning

Budget vs Actuals Encumbrance Model

Proper encumbrance logic eliminating double-counting across requisition to invoice lifecycle.

Project Size

1 engineer, 1 FP&A consultant

Timeline

5 weeks

Technologies

NetSuite, NSPB

1Challenge

Budget tracking was unreliable due to double-counting when requisitions became POs and POs became invoices. Leadership couldn't trust the variance reports.

2Requirements

Proper encumbrance logic across procurement lifecycle
No overlap between requisitions, POs, and invoices
Real-time budget consumption visibility
Drill-down from summary to transaction
Integration with existing NSPB setup

3Solution

We redesigned the encumbrance model with proper state machine logic. Each stage of the procurement lifecycle properly releases the prior encumbrance before creating the new one. The model integrates with NSPB for seamless budget comparisons.

Key Features

State Machine Logic: Proper lifecycle transitions

No Double-Counting: Clean handoff between stages

Real-Time Consumption: Always current budget status

NSPB Integration: Unified planning and actuals view

4Results

100% accurate budget tracking

CFO can trust variance reports for the first time

Eliminated month-end budget reconciliation

Identified $2M in over-committed spend

5Conclusion

The new encumbrance model has restored trust in financial reporting. Leadership makes confident decisions knowing the budget numbers are accurate.

Need something similar?

Let's discuss how we can help your organization achieve similar results with EPM/Planning solutions.

Book a Consultation →