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

1. Purchase requisition process

   • Create a new purchase requisition line, in the Purchase Requisition - Lines (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 Submitted.
   • Approve the requisition, the status changes to Approved.
   • Click Convert Purchase Requisitions to convert the requisition to purchase order.

2. 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.

3. 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.

1. 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.

2. 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.

3. 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.

1. Warehouse receipt process

   • Receive the warehouse order in the Warehouse Receipts (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.

2. 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.

3. 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.

1. 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.

2. 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.

3. Budget Balances

   • Review the budget balances in the Budget Balances (tfbgc3500m000) session.
   • Review the budget transactions generated in the Budget Transactions (tfbgc4500m000) session.