Interpreting Cost Center Budget Results Interpreting Cost Center Budget Results

Interpreting Cost Center Budget Results

Once Cost Center Budgets are created, Brightflag provides spend data and forecasts to help interpret budget performance.


Forecasting

Each Cost Center Budget includes a forecast, unless the budget has already been exceeded.

How the Forecast Works

Brightflag uses a machine learning model to:

  • Review historical spend data

  • Predict future spend within the budget period

If applicable, the forecast includes a 95% confidence interval.

Forecast Requirements

RequirementResult
At least 6 months of spend dataForecast is generated
Insufficient data or high uncertaintyNo Forecast Available message appears

Spend Fields in Cost Center Budgets

Cost Center Budgets display three spend fields:

  • Approved Spend

  • Pending Spend

  • Accruals

Spend from all matters is assigned to the relevant fiscal year (FY) based on the configured date type.

The date type depends on the customer’s settings:

  • Invoice Date

  • Billing Period End Date


Closed Matters

If a matter is closed:

Approved spend and pending spend remain visible in the Cost Center Budget.

Accruals are removed, because invoices can no longer be submitted to the matter.