Overview
This article focuses on the differences between Source Spend Value and Anticipated Spend, helping you understand how these values are represented in Tropic’s system and their practical use.
Source Spend Value vs. Anticipated Spend
Source Spend Value represents the value recorded in the supplier's currency, exactly as stated in the contract. This value reflects the supplier's original terms and does not factor in currency conversions or adjustments.
For example, if a supplier quotes €10,000 for a contract, this amount will be recorded as the Source Spend Value.
Anticipated Spend refers to the value of the contract converted into your organization's base currency. This value is used for internal budgeting, forecasting, and financial reporting.
For instance, if your base currency is USD and the exchange rate is 1 EUR = 1.10 USD, the Anticipated Spend would be $11,000.
How Are These Values Used?
Source Spend Value is helpful for:
- Reviewing contract terms in the supplier's original currency.
- Comparing quoted values from different suppliers operating in the same currency.
For more details on tracking spend values at the contract level, see Comprehensive Overview of Contracted Spend.
Anticipated Spend is valuable for:
- Ensuring internal budgets align with contracts.
- Evaluating financial commitments across contracts, regardless of the supplier’s currency.
Example Scenario
Here are two examples of how Source Spend Value and Anticipated Spend appear in requests:
Request 1: Breadcrumbs
- Source Spend Value: €986 EUR
- Anticipated Spend (in USD): $1,095.45 (based on an exchange rate of 1 EUR = 1.1111 USD).
- Scenario: The supplier operates in EUR, and the value has been converted to USD for internal reporting and budgeting.
Request 2: Code Climate
- Source Spend Value: €295 EUR
- Anticipated Spend (in USD): $327 (based on an exchange rate of 1 EUR = 1.1111 USD).
- Scenario: This smaller request demonstrates how Tropic standardizes financial data by converting Source Spend Value into Anticipated Spend.
By presenting both values clearly, Tropic ensures your organization can accurately assess and plan financial commitments across currencies.
How to Access These Fields
To view Anticipated Spend and Spend Source Value, follow these steps:
- Navigate to the Requests Section in Tropic.
- Review the table columns to locate:
- Anticipated Spend: Displays the value of the request in your base currency.
- Spend Source Value: Displays the value in the supplier's original currency as specified in the request.
Use these fields to compare original and converted spend values for budgeting and reporting purposes.
When to Use Source vs. Anticipated Spend
- Source Spend Value: Use for supplier negotiations and contract evaluations in the supplier's terms.
- Anticipated Spend: Use for internal financial reporting, forecasting, and aligning budgets in your organization’s base currency.
Additional Resources
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