| # Budget check in procurement After defining a budget policy for the new budget, you can control the budgets balances using budget accounts. The budget balances are classified in the procurement cycle as below: Total estimated budget amount Budget allotted or released Commitments Encumbrance Receipt expense Other expense
     Total Available budget = Allotment - Commitment-Encumbrance - Total Expense.
     (Total Expense = Receipt Expense + Expense)
Budget check in purchase requisitions Purchase requisition process Create a new purchase requisition line, in the Purchase Requisition (tdpur2600m000) session, specify the item and order quantity. Select the requisition line, and click Budget Account Distribution. The Budget Account Distribution (tcbgc1100m000) session opens. Delete the line and insert the GLcode defined for the budget account. Click Submit to submit the requisition. If an exception occurs See: To handle budget exceptions. Review the status, the Requisition Status changes from Created to Pending Approval. Approve the requisition, the status changes to Approved. Click Convert Purchase Requisitions to convert the requisition to purchase order. Budget check process The execution of budget check process depends on the parameter option you select in the Budget Control Policy (tfbgc0110m000) > Purchase Requisitions tab: At purchase requisition entry when you select Document Entry option At submitting the requisition when you select Document Submittal option At the approval of requistion when you select Document Approval option. Budget balances Review the budget balances. The budget balance of type commitment is updated and the allotment amount is reversed. Review the Commitment and the Allotment fields in the Budget Balances (tfbgc3500m000) session. Review the budget transactions generated in the Budget Transactions (tfbgc4500m000) session. Note In the Budget Account Distribution (tcbgc1100m000) session, after the budget check process, the Budget Exception field is selected when the transaction is blocked or when an exception occurs. You must resolve the exception before you check the budget again. See: To handle budget exceptions. Budget check in purchase orders Purchase order process Select the purchase order. In the Purchase Orders (tdpur4100m000) session, click Approve to approve the purchase order. Click Budget Account Distribution to open the Budget Account Distribution (tcbgc1100m000) session. Review the budget details. Click Release to Warehousing to release the order to warehouse. Budget check process The execution of budget check process depends on the parameter option you select in the Budget Control Policy (tfbgc0110m000) > Purchase Orders tab: At purchase order entry when you select Document Entry option At the approval of order when you select Document Approval option. Budget Balances Review the budget balances, the budget balance of type encumbrance is updated and commitment is reversed. Review the Encumbrance and Commitment fields in the Budget Balances (tfbgc3500m000) session. Review the budget transactions generated in the Budget Transactions (tfbgc4500m000) session. Budget check in warehouse receipts Warehouse receipt process Receive the warehouse order in the Warehouse Receipt (whinh3512m000) session. Click Confirm to confirm the warehouse receipt. Click the Budget Account Distribution, the Budget Account Distribution (tcbgc1100m000) session opens. Review the budget details. Budget check process The execution of budget check process depends on the parameter option you select in the Budget Control Policy (tfbgc0110m000) > Receipts tab: On the actual receipt date when you select Actual Receipt Date option On the planned receipt date when you select Planned Receipt Date option. Budget Balances Review the budget balances, the budget balance of type receipt expense is updated and encumbrance is reversed. Review the Receipt Expense and Encumbrance fields in the Budget Balances (tfbgc3500m000) session. Review the budget transactions generated in the Budget Transactions (tfbgc4500m000) session. Budget check in purchase invoices Purchase invoice process Create new transaction with the transaction type purchase invoice in the Transactions (tfgld1101m000) session. Set the Invoice Type to Invoice Related to Purchase Orders in the Purchase Invoice Entry (tfacp2600m000) session. Specify the Business Partner, Amount and Tax Country/Code. Review the matched invoice with the receipt line in the Matched Invoices by Receipt Line (tfacp2551m000) session. If a budget exception occurs, resolve the exception before you check the budget. See: To handle budget exceptions. Click the Budget Account Distribution command, the Budget Account Distribution (tcbgc1100m000) session opens. Review the budget details. Approve the purchase invoice and finalize the transaction batch. Budget check process The execution of budget check process for invoices and credit notes depends on the parameter option you select in the Budget Control Policy (tfbgc0110m000) > Purchase Invoices tab: At purchase invoice or credit note entry when you select Document Entry option At the approval of invoice or credit note when you select Document Approval option. Budget Balances Review the budget balances in the Budget Balances (tfbgc3500m000) session. Review the budget transactions generated in the Budget Transactions (tfbgc4500m000) session. Note The budget check process can also be executed for the transactions like purchase return order, purchase order with cost item and cost invoice with multi currency. |