Internal budgets can be added and set up by users for spending tracking and reporting purposes. For information about budget requests for vendor collaboration, review the External Budgets article.
This article covers the following:
Creating an Internal Budget
1. From the Budgets list, click + Create Budget in the top-right corner and select Internal Budget.
2. Enter a budget name (required).
3. Select the Budget Type (i.e., Monthly, Quarterly, Phase, or Life of Matter).
NOTE: Users are prompted for information based on the selected budget type. For additional information, click here.
4. Set the date range:
- Select or enter the month/year (MM/YY) and click Apply for monthly, phase, and life of matter budgets
- Enter the year in YYYY format for quarterly and annual budgets
NOTE: For Phase budgets only, select an option from the Phase Set dropdown (e.g., Counseling, Patents, Trademarks, etc.).
5. Enter the budget amount (no commas) and then click Save.
This saves the budget as a draft. Make sure to complete the steps below before approving.
Setting Budget Attributes & Details
1. Review the Budget Attributes sections for edits or configurations, such as adding a description or associating the budget with a specific matter and/or vendor. Hover over the far-right of the field and click the edit icon to modify existing values or click + add... to fill in a blank field.
For example, associating the internal budget with a specific matter would allow only users with access to the matter to view the budget record.
Custom attributes appear as fields under the Budgeted Values if: 1) they are lists with Allocatable set to “Yes,” and 2) they are scoped to matter records at a minimum.
TIP: The budget's status should not be changed until all attributes have been set. Once changed to approved, the attributes cannot be edited unless the status is reverted to draft.
2. Switch to the Details tab and click Edit Values in the top-right corner.
The number of rows under Budget Details column depends on the selected budget type. Monthly budgets, for example, have a row for each month spanning the date range.
3. Verify or update the Budget Amount.
4. Enter/adjust values for Allocated Fees and Allocated Expenses for any of the rows as needed.
5. Under the Description column, add any necessary notes for specific rows.
By default, the amount is evenly distributed across the Allocated Fees column for each term. Make sure to update as needed and confirm the Unallocated value remains at $0.00.
6. Click Save Budget.
7. Click Yes when prompted to confirm.
Approving Internal Budgets
The budget will remain in draft status until manually updated. To change the status, click Actions in the top-right corner and select Approve Budget.
Internal Budget Records
A budget record is separated into the following tabs:
- Overview: Budget Attributes (i.e., General & Budgeted Values), Budget Health, and Activity Log. For more information on the fields and spend data shown, skip to the section below.
- Details: Breakdown of the budget amount and allocated, approved, and pending fees/expenses. Users with permissions can edit the allocated values and total budget amount as needed.
- Internal Notes: Allows users to add comments or review comments added by others with access.
Budget Attributes
General
| Budget | Name given to the budget. Can be edited for draft and approved budgets. |
| ID (read-only) | Unique ID assigned when a budget is created. |
| Date Range | Start and end date (typically driven by the budget type). Can only be edited in draft status. |
| Description | Description of the budget, if provided. Can only be edited in draft status. |
| Currency | Three-character currency code (e.g., USD) assigned to a budget. Defaults to the system currency but can be changed for draft budgets only. |
| Type (read-only) | Monthly, Quarterly, Phase, or Life of Matter. For more details on budget types and their uses, click here. The budget type cannot be changed once the budget record is created. |
| Status | Draft, Approved, or Archived. Changes to status depend on the current status. For example, an approved internal budget can be archived or reverted to draft. |
| Source (read-only) | Internal or External. External only applies to Budget Requests that are sent to vendors. |
The fields below can be edited while the budget is in draft status (except Matter Lead, which is read-only).
Budgeted Values
| Matter | Name of the associated matter, if any. |
| Matter Lead (read-only) | User assigned as the Matter Lead on the associated matter. Auto-populates based on the selected matter and cannot be manually updated. |
| Practice Area | Name of the Practice Area associated with the budget, if any. |
| Vendor | Link to the vendor associated with the budget, if any. |
| Legal Entity | Name of the Legal Entity associated with the budget, if any. |
| Cost Code | Name of the Cost Code associated with the budget, if any. |
| Custom Attributes | Additional fields appear if there are any custom attribute lists that are: 1) set as Allocatable, and 2) scoped to matter records at a minimum. |
Budget Health
The Budget Snapshot section provides a high-level overview of the budget’s health based on spend to date. Generally, the budget snapshot is refreshed four times daily. It also recalculates for an individual budget each time the record is opened/viewed.
The budget health is categorized as follows:
- Approved Invoices: Counts associated invoices that are in one of the following statuses: Approved, Sent to AP, Posted to AP, Paid, Partially Paid, or Overpaid.
- Pending Invoices: Counts associated invoices that are in one of the following statuses: Received, On Hold, or Processing.
- Accrual: Counts the accrual estimate (i.e., reported unbilled activity) minus any billing activity within the reporting period.
- Remaining Budget: Displays the remaining budget amount, minus the approved invoices and pending invoices.
Click on Approved Invoices, Pending Invoices, or Accrual to see a filtered list. Based on this information, the budget's health is labeled as being "Within" the amount or "Over" the amount on the budget list page for quick reference.
Activity Log
This section under the Overview tab lists a record of changes and other actions taken on the budget in chronological order, including date, time, and username.
Other Actions
The following actions can be taken from the Budgets Actions menu in the top-right corner:
- Delete Budget: Option is only available for internal budgets in draft status.
- Clone Budget: Save a copy of an internal budget and modify specific attributes, such as the date range, matter, vendor, and amount.
- Approve Budget: Change the status of an internal budget to approved once finalized. This can be reverted to draft if changes to attributes are required.
- Download: Export budget details and see a history of changes made by users.
NOTE: To archive an internal budget or revert it to draft status, hover over the far-right of the Status field under Overview > Budget Attributes, click on the edit icon, and select the status option.
