Purchase Business Setup (PBS) - Budget Checking

  1. Specify this information:
    Budget Update Basis
    When budget checking, this specifies the way budgets are checked as transactions are entered. Options are: Update Line by Line, and Update Order by Order. This applies to both purchase orders (over commitment checking) and purchase invoices (over expenditure checking).
    Commitment Stage
    This is used in budget checking to specify the stage when commitment checking is performed in purchase orders. Options are: Order Confirmed, and Order Entered and Not Held. If a transaction is held at either Order Entry or Order Confirmation, the stage has not been completed and budget checking is not performed until the line is released. If a line fails budget checking at the confirmation stage, this is treated as a validation error and the line is not confirmed.
    Expenditure Stage
    This is used in budget checking to specify the stage at which expenditure checking is performed in purchase invoices. Options are: Invoice Entry, Invoice Matching, and Invoice Confirmation. During purchase invoice processing, the system looks at the equivalent setting on the Purchase Type first to see if this stage is set, if not then this flag is used. If a transaction is held at any stage, the stage has not been completed and budget checking is not performed until the line is released. If a line fails budget checking at the confirmation stage, this is treated as a validation error and the line is not confirmed.
    Over Expenditure Check
    In budget checking, this box is checked to invoke over expenditure checking as invoices are entered. Using over expenditure checking, an invoice line value must be within the remaining budget for the account, or within the tolerance percentage or amount of this.
    To use over expenditure checking, the budget values must be defined in Financials and budget checks must be created using Budget Check (BCS) to identify the appropriate budget account to be checked.
    Tolerances can be varied or ignored for individual Operator Groups using Miscellaneous Permissions, which are maintained using the Security. A transaction must be within both tolerances to be accepted.
    Note: It is expected that most users would check this check box to ensure that tolerance checking is in place.
  2. If budget checking is selected, you must specify the tolerances to be applied:
    Over Expenditure % Tolerance
    The permitted percentage tolerance applied by the system when carrying out over expenditure checking, if the Over Expenditure Check field is selected. The invoice line value can be over budget by this percentage and the system will warn the user but allow processing to continue.
    Over Expend Value Tolerance
    The permitted value tolerance applied by the system when carrying out over expenditure checking, if the Over Expenditure Check field is selected. The invoice line value can be over budget by this amount and the system will warn the user but allow processing to continue.
    Over Commitment Check
    If you are serialized for SunSystems Financials, this box is checked to invoke over commitment checking as purchase orders are entered. Using over commitment checking, an order line value must be within the remaining budget for the account, taking any existing commitments into account, or within the tolerance percentage or amount of this.

    To use over commitment checking, the budget values must be defined in Financials and budget checks must be created using Budget Check (BCS) to identify the appropriate budget account to be checked.

    Note: It is expected that most users would check this check box to ensure that tolerance checking is in place.
    Note: If both the amount and percent tolerance is set, the lower amount is used for the check.
  3. If over commitment checking is selected, you must specify the tolerances to be applied. An order or order line must be within both tolerances to be accepted.
    Over Commitment % Tolerance
    The permitted percentage tolerance applied by the system when carrying out over commitment checking, if the Over Commitment Check field is selected. The order line value can be over budget by this percentage and still be accepted.
    Over Commit Value Tolerance
    The permitted value tolerance applied by the system when carrying out over commitment checking, if the Over Commitment Check field is selected. The order line value can be over budget by this value and still be accepted.
  4. Save your changes.