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How do I set up a budget that stops overspending?

Create a Budget Model and a Budget Period with its months, then a General Ledger Account Budget with one line per account and dimension, an amount, and Action Stop or Warn.

Screen
Budget › Budget Model, Budget Period, Budget
Who
Finance manager
Takes effect
On the next requisition, order, vendor invoice or journal entry
Needs first
Chart of accounts, financial dimensions

Steps​

  1. Open Budget Model and create the version, for example ORG Original.
  2. Open Budget Period: code, name, the year's dates, and one line per month with Period status Open. Save.
  3. Open General Ledger Account Budget. Fill Budget, Budget Model, Budget Period and Currency, then Create.
  4. Add a line per account to control. Account, the dimensions, Transaction Amount (spread equally over the months), Action Stop or Warn, Budget Status Open. Open Period to change the month amounts; they must add up to the line amount.
  5. Save. Or import the lines from a spreadsheet.
  6. Name the model on Budget Setting so the boards compare with it.

Check it worked​

  • A purchase requisition over the month's available amount is refused (Stop) or asks for confirmation (Warn) when released.
  • Budget lists: Budget vs Actual shows the budget, committed, actual and available amounts.

If something looks wrong​

  • Nothing is checked. The account has no budget line, the date is outside the periods, or the dimensions differ.
  • "Line ID: ... Period is not defined." The Budget Period has no month lines.