Spend-under-management workbook

This spend-under-management workbook calculates invoice coverage under an explicitly selected policy. It keeps on-contract, approved off-contract, unmanaged, unknown and excluded spending visible. The live policy control shows how a broader definition differs from a stricter route-and-contract test on the same records. The existing guide owns the meaning; this artifact lets a reviewer apply a stated measurement policy.

What to enter

Enter invoice ID, category, net amount in USD, addressable Yes/No, current-contract Yes/No/Unknown, approved-supplier Yes/No/Unknown, approved-route Yes/No/Unknown and evidence reference. B4 selects policy 1 or 2. Broad means a current contract or approved supplier. Strict means a current contract and approved purchasing route. Use net amounts on one stated invoice-date basis, and agree category exclusions separately.

Use the workbook

1. Reconcile the invoice population and decide which spend is addressable. Record excluded rows instead of dropping them from the workbook.
2. Enter the contract, supplier and route evidence. Use Unknown when records cannot establish a flag; do not infer a current contract from a supplier name.
3. Select the policy in B4 and review managed amount, known addressable spend, measured share and the upper bound if unknown evidence were resolved as managed.

Keep the amber inputs separate from the pale blue calculation columns. The worksheet has 20 prefilled detail rows, from 13 through 32. If you need more records, extend every affected formula and summary range together, then check a first, middle and final row. Save a dated working copy before replacing the sample.

The synthetic example

The sample has $320,000 of known addressable invoice spending and $50,000 excluded payroll. Broad policy manages $180,000, giving 56.3%. Strict policy manages $100,000, or 31.3%. Another $40,000 has unknown evidence. The broad upper bound is therefore $220,000 divided by $320,000, or 68.8%. Changing the policy changes the measurement definition, not the purchase history.

How the results update

The row calculations retain the evidence bucket, selected-policy classification, managed amount and unknown amount. The denominator includes known addressable records, including those with unknown management evidence. Measured share counts only confirmed managed amounts; the upper bound adds unknown amount. A missing addressability decision stays Unknown and requires scope resolution. A zero denominator produces n.a. rather than a zero percentage.

Limits and a useful next step

The sample policies are explicit choices, not universal industry standards. Unknown evidence is not proof of unmanaged purchasing. The upper bound is a bound, not a forecast of what a cleanup exercise will find. The workbook does not verify live contract dates, translate currencies or calculate savings. Keep the selected policy and period on every result, and separate policy reclassification from changes in how the business actually buys.

For the underlying method, read spend under management. what is a good spend under management covers the adjacent question. If you want to review the required fields and one reporting output, discuss your setup. Views depend on your records and agreed definitions.