Spend limits can be set up against Live Suppliers in Requirements to limit how much money can be spent against them in Requisitions/Purchase orders in line with the contract they have been awarded.
Enabling Spend Limits:
To utilize the spend limits functionality, they must first be enabled on the site. To do this:
- Navigate to Sourcing>Settings>£ Spend Limit .
- Toggle Enable Spend Limits and click Save.
- Toggle Spend Limits on for Direct P2P and/or Project P2P as you require and click Save.
Spend limits will now be enabled for the relevant module on the site.
From this settings page you can also set the 'Warning threshold for Spend Limit':
- This is the amount that will trigger a warning notification to the lead person on the requirement, to let them know a supplier's spend limit is almost used up. For example, if the threshold is set at the default rate of £1000 and a spend limit is set for a supplier at £50,000, then when the amount spent against the supplier passes £49,000, the warning notification will be triggered.
You only need to do this once when enabling Spend-Limits for your site. Please read from "Setting up Spend Limits" onwards.
Setting up Spend Limits:
Once Spend limits are enabled on the site, they can be set up against a live supplier in a requirement.
To do this:
- Navigate to the Categories tab of the relevant requirement.
- Click Set Spend Limits
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⚠ Important
In order to set up Spend Limits, you will need to have set up the lots and made a supplier live against it. Click here for articles on how to do this.
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When this is done, from the categories tab:
- Click on the Lot you need to set a spend limit against
- Select the Spend Limit sub-tab to view the suppliers who are currently live against this lot.
- Add a Spend Limit against a supplier by clicking set and confirming .
Note: If the requirement is against a threshold that requires Authorisation, then this spend limit will first go to the Authoriser to be applied.
- When the spend limit has been applied, the Applied column will present green next to the limit, and there will be a balance tab to keep track of how much remains in the spend limit.
- You can view a full breakdown of the spend limit against this supplier in the Suppliers tab at any point by clicking on the Spend Limit Balance.
Requisitions/Purchase Items made against the relevant suppliers (and the lots/cost categories connected) will now start coming out of their spend limit To edit the spend limit at any point, navigate to it from the Categories tab of a requirement , as above, and click confirm edit once the edit has been made.