This article provides answers to some of the most frequently asked questions (FAQ) by Budget owners related to budgets in Payhawk.
How does spending show up in my budget?
Budgets are tied to a dimension, such as Department, Cost Center, or Project. Any business spend with the same dimension is routed to the budget automatically once it’s approved or reviewed.
Can I move or split an expense between budgets?
Yes. During review, you can change the dimension or split lines. Utilization recalculates instantly.
Will Payhawk stop the spending when the budget hits 100%?
No. Budgets are a visibility tool. You’ll see an overspend flag, but Payhawk will not block approvals or payments.
How are purchase orders treated?
Approved purchase orders show in the Committed tab until the matching invoice is approved. Then, that amount moves to the Utilization tab.
When does an expense get recorded, and how does amortization work?
Payhawk uses accrual accounting, which means expenses are recorded based on when they happen, not when they’re paid.
If the expense has an amortization schedule, the cost is spread out and recorded monthly.
If there’s no amortization, the expense is recorded based on the service period.
If there’s no service period, Payhawk uses the document date. If that’s also missing, it uses the date the expense was created.
You can also add or change the amortization period on any expense to spread the cost over time.
What FX rate is used?
The rate on the document date updates utilization, so values stay accurate in your base currency.
Are the budget amounts net or gross?
Net amounts are used for budgets, so the numbers stay consistent across different countries and companies.