# Procurement Budget Validation

> Validate procurement orders against budget allocations, track committed spending, and enforce budget gates before order approval

- Skill: `construct-ai-primary/procurement-budget-validation` (Agent Skill)
- Install (CLI): `npx skillmds@latest add construct-ai-primary/procurement-budget-validation`
- Raw SKILL.md: https://api.skillmd.com/api/skills/construct-ai-primary/procurement-budget-validation/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Finance & Business
- Author: Construct-AI-primary (https://skillmd.com/u/construct-ai-primary)
- Updated: 2026-09-21
- Page: https://skillmd.com/skills/construct-ai-primary/procurement-budget-validation

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# Procurement Budget Validation

## Overview

Validate procurement orders against budget allocations before approval, track committed spending, enforce 3-way match (PO-GRN-Invoice), and implement budget gates. Ensures no order exceeds available budget without proper escalation.

**Announce at start:** "I'm using the procurement-budget-validation skill to validate order budgets and enforce cost controls."

## When to Use This Skill

**Trigger Conditions:**
- Before order submission for approval
- During order value calculation
- When budget availability is uncertain
- Before invoice processing
- When cost variance detected

**Prerequisites:**
- Budget data accessible via API or database
- Cost center/WBS element defined for order
- Committed cost tracking active

## Step-by-Step Procedure

### 1. Budget Availability Check

Before processing any order:

```
Available Budget = Approved Budget Line Item
                   - Already Committed (POs issued)
                   - Already Spent (Invoices paid)
                   - Encumbrances (Pending approvals)

Order Allowed = Order Value <= Available Budget
```

### 2. Pre-PO Budget Gate

| Check | Pass Condition | Fail Action |
|-------|---------------|-------------|
| Budget line exists | Cost center/WBS valid and active | Require budget code assignment |
| Available funds ≥ order value | (Budget - committed) ≥ order | Escalate to finance manager |
| Currency match | PO currency = budget currency | Apply exchange rate with date flag |
| Variance ≤ tolerance | Unit price variance < 15% from budget rate | Flag for buyer review |

### 3. Pre-Payment 3-Way Match

Before processing any invoice:

| Document | Data Verified | Match Condition |
|----------|---------------|-----------------|
| Purchase Order | Quantity, unit price, terms | Base of comparison |
| Goods Receipt Note (GRN) | Quantity received, date | GRN quantity ≤ PO quantity |
| Invoice | Amount, quantity, reference | Invoice amount = PO price × received quantity |

**Tolerance:** 100% match required for same-day processing; variances up to invoice tolerance (%) escalate to finance.