Purchase budget controlYou can use budget control to check purchase transactions against available budgets. For purchase requisitions, orders, and receipts, you can specify if, how, and when budget checks must be executed. Note To implement budget control, select the Budget Control check box in the Implemented Software Components (tccom0100s000) session. After the available budget is checked, budget transactions are generated in the Budget Transactions (tfbgc4500m000) session and budget balances are updated in the Budget Balances (tfbgc3500m000) session. These budget transactions are generated:
If a budget check fails, a budget exception is applicable that must be resolved before the relevant purchase procedure can continue. Budget control master data Before purchase transactions can be checked against available budgets, you must set up the budgets. For more information, refer to: To check and update budgets for purchase requisitions, purchase orders, and purchase receipts, specify these fields in the Budget Control Policy (tfbgc0110m000) session:
Budget account distribution (BAD) The available budget for a purchase requisition line, order line, or receipt line can only be checked if a correct budget account distribution (BAD) is linked to the line. The generated or defaulted BAD is used to link the purchase transaction to the applicable budget. The following are required to generate a BAD:
On the appropriate menu of the following sessions, click Budget Account Distribution to start the Budget Account Distribution (tcbgc1100m000) session, in which you can view and modify the generated BAD:
Note If, for example, a purchase requisition line is converted to a purchase order line, the BAD from the requisition line is defaulted and linked to the purchase order line. To check and update the available budget When the budget is checked for a line, the budget check can fail. In this case, the Budget Exception check box can be selected in the applicable session. If this check box is selected, the budget exception must be handled before you can continue with the purchase procedure. However, the Budget Exception check box is only selected if the following are applicable:
To resolve the budget exception, you can, for example, change the line amount or the BAD. You can then manually check the budget for lines that have the Budget Exception check box selected and have a correct BAD. To check the budget, click Check Budget on the appropriate menu of the following sessions:
Note If insufficient budget is available for a line and the When Budget is Exceeded field is set to:
Purchase requisition approval process When the last approver in the external approval process approves a requisition, the Spend Approved check box is selected on the requisition header. Irrespective of the value of the Requisition Check Available Budget upon field in the Budget Control Policy (tfbgc0110m000) session, the budget check is then automatically executed. If the Budget Exception check box is selected for one or more lines that are not rejected, the requisition cannot be approved. First the budget exception must be handled. To handle the budget exception, requisition lines with the Spend Approved check box selected can be modified, as well as the linked BAD. When the budget exceptions are handled for all lines and the budget check is done for all lines, the requisition status changes from Pending Approval to Approved. Budget exceptions for rejected lines can be ignored during approval. The commitments for these rejected lines are reversed during final approval. Purchase requisition conversion process Approved requisitions can be converted to a purchase order or request for quotation (RFQ). If a requisition line is converted to a purchase order, the requisition line's Commitment transaction is reversed when the purchase order line's Encumbrance transaction is booked. The moment of budget checking and encumbrance booking, is determined by the Purchase Order Check Available Budget upon field in the Budget Control Policy (tfbgc0110m000) session. If this field is set to Document Entry, the requisition commitment is reversed at the moment of purchase order line entry. If this field is set to Document Approval, the check and update are done at the moment of purchase order approval and, therefore, the requisition commitment is reversed when the purchase order line is approved for the first time. The commitment is also reversed when the generated purchase order line is deleted or canceled. Note
If a requisition line is converted to an RFQ, the requisition line's Commitment transaction is not reversed, because budget transactions are not booked for RFQs. The reversal of the commitment booking is done when the generated RFQ is deleted or when it is converted to a purchase contract or price book. If the RFQ is converted to a purchase order, the requisition commitment is reversed when the generated purchase order line is created or approved, dependent on the Purchase Order Check Available Budget upon parameter, or when it is deleted or canceled. Note
Purchase backorders After a final receipt, the original purchase order line's Encumbrance transaction is reversed for the total line amount. If a backorder line is created, an Encumbrance transaction is booked for the backorder line amount. The original order line's BAD is copied to the backorder line. If the Combine Open Backorders check box is selected in the Purchase Order Types (tdpur0194m000) session, an existing open backorder line can be updated with a new backorder quantity. If this is the case, the following steps are completed:
Note For potential back orders, the budget is not checked or updated. Copied purchase orders The following are applicable to a copied purchase order line:
You can copy purchase order lines in the Copy Purchase Order (tdpur4201s000) session. Purchase return orders The following are applicable to a Return Inventory purchase order line:
For a Return Rejects purchase order line, if the Inventory Disposition check box is selected in the Inventory Handling Parameters (whinh0100m000) session, the above actions are also applicable. However, if the Inventory Disposition check box is cleared, the budget balance is not updated when rejected goods are returned. The receipt expense is reversed at the moment of rejection. Purchase additional costs If lines with additional costs must be added to a purchase order, these additional cost lines are generated during the approval of the purchase order. The budget check and update for these additional cost lines is always executed at the moment of line entry. If the budget check fails, the Budget Exception check box is selected and the Approved check box is cleared for the line. If the purchase order is modified after approval, the additional costs can be recalculated. Dependent on the Recalculation of Additional Costs field in the Purchase Order Parameters (tdpur0100m400) session, additional costs are recalculated automatically, interactively, or not. When additional costs are recalculated, first the existing additional cost lines are deleted. Next, new cost lines are retrieved and added to the purchase order. For the newly added cost lines, the budget check is executed. Purchase receipts In the Purchase Receipts (tdpur4106m000) session, the following are applicable to a purchase receipt:
Example Ordered quantity: 100
Price and discount change after receipt If a receipt is registered for an order line, in the Change Price and Discounts after Receipt (tdpur4122m000) session, you can still change price and discounts for the purchase order line. When a price and discount change is saved, a budget check is executed. If the budget check fails, an error message is given and the change cannot be saved. Receipt corrections You can change the received quantity for a confirmed receipt, or make a final receipt non-final in the Correct Purchase Receipt (tdpur4106s100) session. When a receipt correction is saved, a budget check is executed, if required. If the budget check fails, an error message is given and the receipt correction cannot be saved. The following receipt corrections are available:
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