How to Use Sage Intacct Multi-Book Part 2

In the first part of our series on Sage Intacct’s multi-book functionality, we explored the basics of how this powerful feature simplifies complex reporting and the importance of financial analysis software. Now, in Part 2, we’re getting into the weeds of purchase commitments and demonstrating how setting up a purchase commitments book can transform your financial insights and forecasting capabilities.

Sage Intacct’s Built-In Multi-Book Power

To give a quick refresher, Sage Intacct’s multi-book functionality is a powerful accounting automation tool for finance teams looking to layer and stack various financial reporting needs. It seamlessly tracks accrual and cash basis journals while layering in additional transactions, such as:

• Purchase commitments
• U.S. GAAP entries
• Board-specific entries
• Other customized reporting requirements

Did you know that 52% of accounts payable teams still spend over 10 hours a week processing invoices? Automation in your financial analysis software can drastically reduce this burden. For example, Sage Intacct’s multi-book streamlines tracking financial and non-financial data, eliminating the need for time-consuming manual processes. Let’s find out how this technology helps Sage Intacct businesses manage their purchase order commitments…

Spotlight on Purchase Commitments

One of the most impactful applications of multi-book functionality is tracking purchase commitments. Imagine being able to monitor all your open purchase orders (POs) - whether they’re for subcontractors, raw inventory items, software licenses, or labor, and layer that information on top of your accrual and cash basis reports.

Don’t believe us? Here’s how it works:

1. Establishing a Purchase Commitments Book
   • Set up a user-defined purchase commitments book within Sage Intacct.
   • Configure a transaction definition to enable additional postings on a PO.
2. Tracking Commitments Without Immediate Financial Impact
   • A PO typically has no financial impact in an ERP system until it’s fulfilled (by a receipt or invoice). However, the commitments book allows you to capture the “what-if” financial impact of these orders BEFORE they’ve occurred.
3. Additional GL Postings
   • With a seamless back-end configuration, Sage Intacct automatically posts additional entries to the commitments journal whenever a PO is entered. These aren’t accrual postings; they’re recorded in the commitments book to keep this data distinct.
4. Enhanced Financial Reporting
   • Run financial reports that display your accrual and commitments books side-by-side, giving you a clear picture of your actual net remaining budget - including committed, non-received, or un-invoiced purchases.

The Bigger Picture: Impactful Forecasting

If you’re a part of the nearly 40% of CFOs who don't trust your organization's financial data, you need this. Tracking purchase commitments in your financial analysis software doesn’t just improve reporting; it significantly improves your forecasting abilities. By seeing your net committed spend in real-time, you can:

• Forecast Total Spend
  Even for non-financial purchase orders, such as general supply or raw inventory items, you gain a full view of your financial obligations.
• Manage Budgets More Effectively
  Know your actual net remaining budget by factoring in commitments before they hit your financial statements.
• Visualize the Bigger Picture
  Layer commitment data with sales-side data to understand the potential impact of open orders and POs on your net income.

Seamless Setup, Continuous Benefits

Once your purchase commitment book is configured, it operates seamlessly on the back end. Here’s our in-house expert, Brian Miller, walking you through the quick walkthrough setup with screenshots, or you can watch the full video here: 

1. Configure the purchasing system to establish a user-defined purchase commitment book.

2. Define transactions to include additional GL postings tied to POs.

3. Once this initial configuration is complete, it requires no further user intervention.

Now, every time a PO is created, Sage Intacct will automatically post to the commitments journal. On the entity 100 level, for example, this means you can:

• Post a PO
• Run a financial report displaying the accrual book alongside the commitments book for an at-a-glance comparison

Why Your Finance Team Will Love This

With Sage Intacct’s multi-book functionality, you can finally see the complete picture. By layering commitments on top of traditional journals, they’ll:

• Gain better visibility into obligations
• Save time with automated postings
• Improve accuracy in financial forecasting

Sage Intacct’s purchase commitments functionality isn’t just a feature; it’s a smarter way to manage financial planning and reporting in a world where real-time data has become a competitive necessity. By

leveraging this native capability, your team can stay ahead of commitments, optimize budgets, and deliver more insightful financial analysis. We’re not done yet! Stay tuned for Part 3 (the final article of this blog series on multi-book functionality), where we’ll discuss statistical account/book tracking, as well as how to report on financial and non-financial data together.

If you have questions on Sage Intacct’s multi-book technology and the impact it, or financial analysis software and Sage Intacct, can deliver to your organization, reach out to our experts today.