Setting Up Expenditure and Commitment Checking

Note: Commitment checking is only available if you are using the Purchasing module in SunSystems Order Fulfilment.

The following steps are required to establish expenditure and commitment checking in SunSystems Financials:

  1. Create the tables required to hold the budget ledgers, using Optional Ledger Tables (OLT).
  2. Label the budget ledgers using Budget Labels (BLB).
  3. Select the business unit in Business Unit Administration (BUA), and select Amend from the Action menu to display the business unit setup form.
  4. In Business Unit Setup, enter the following details to identify the budget ledgers that are used to hold the budget and commitment values:
    • Primary Budget Ledger Code
    • Purchase Commitment Ledger
  5. In Ledger Setup (LES), check the Apply Budget Tolerances check box and define the budget tolerance percentage and/or amount if you want to those tolerance settings to be used during expenditure checking.
  6. Use Budget Check Setup (BCS) to define the budget checking rules to link actual accounts to the budget accounts that contain the allocated budget values.
    Note: To include any committed expenditure amounts in the expenditure checking process, set the Include Commitment flag for the budget check record.
  7. Enter the budget values using any of the ledger transaction input facilities:
    1. Change to the budget ledger using Change Budget (CBG).
    2. Use Ledger Entry (LEN), Ledger Import (LIM) or Corporate Allocations to post the budget values. Normally, the budget value is entered as a debit.
  8. The following steps are required to implement budget checking in SunSystems Order Fulfilment purchase invoices. This allows purchase invoices to be entered and the budget expenditure amounts to be updated. It is assumed that the budget has been created above in SunSystems Financials:
  9. In Purchase Business Setup (PBS) set the Budget Update Basis to be either order (i.e. entire invoice) or line. If set to order, the entire invoice is entered before any budget functionality is processed, otherwise budget checking is performed line by line. This applies to both orders and invoices.
  10. In Purchase Business Setup (PBS) set the Expenditure Stage to be Invoice Entry, Invoice Matching or Invoice Confirmation. This can be overridden by setting the Expenditure flag on a Purchase Types (PTS).
  11. In the Purchase Type Definitions Values Setup set one value to be used in budget checking using the Expenditure Budget Value field. All budget values must be held in the base currency.
  12. The following steps are required in order to implement budget checking with SunSystems Order Fulfilment purchase orders:
  13. In Purchase Business Setup (PBS) set the Budget Update Basis to be either order (i.e. entire order) or line. If set to order, the entire order is entered before any budget functionality is processed, otherwise budget checking is performed line by line. This applies to both orders and invoices.
  14. In Purchase Business Setup (PBS) set the Commitment Stage to be Order Entered and Not Held or Order Confirmation.
  15. In the Purchase Type Definitions Values Setup set one value to be used in budget checking using the Commitment Budget Value field. All budget values must be held in the base currency.
  16. The above steps allow purchase invoices to be entered and actual budget expenditure amounts updated; and purchase orders to be entered and committed expenditure amounts to be updated. If a budget is exceeded, no action is taken. The following steps are required to implement over expenditure checking in purchase invoicing, and if a budget is exceeded you are warned or prevented from continuing:
  17. In Purchase Business Setup (PBS) set the Over Expenditure Check checkbox.
  18. If required, set any Over Expenditure checking tolerances. In Purchase Business Setup (PBS) set a percentage or a value to be used on all purchase invoices. This can be overridden by the settings for a specific operator group, which are maintained using Security Console or User Manager. If the transaction is over budget but below the tolerance, you are warned but are allowed to continue. If the transaction is over budget and over tolerance, you are not allowed to continue.
  19. The following steps are required to implement commitment checking in purchase orders, and if a budget is exceeded you are warned or prevented from continuing:
  20. In Purchase Business Setup (PBS) set the Over Commitment Check checkbox.
  21. If required, set any Over Commitment checking tolerances. In Purchase Business Setup (PBS) set a percentage or a value to be used on all purchase orders. This can be overridden by the settings for a specific operator group, which are maintained using Security Console or User Manager. If the transaction is over budget but below the tolerance, you are warned but are allowed to continue. If the transaction is over budget and over tolerance, you are not allowed to continue.
    Note: No ledger interface postings are required in order to perform budget checking in SunSystems Order Fulfilment.
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