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How do I keep purchases inside the budget?

Set up a ledger budget for the purchase accounts with the action stop or warn. A released purchase order then checks each line's net amount against what is left for its account, dimensions and period: stop refuses the save, warn asks you to confirm and marks the line Budget Limit Override.

Who
Finance sets the budget; the buyer meets the check
Takes effect
When the order is released
Needs first
A ledger budget on the accounts the order lines carry

Steps​

  1. Set the ledger budget for the purchase accounts and periods, with its action (see General Ledger Account Budget and How do I set up a spending budget?).
  2. On the Purchase Order, press Perform Budget Check (header or line) to see Budget Amount, Encumbrance Amount, Actual Amount, Balance and Total Available for each line's account. The requisition has the same button.
  3. Save and release. Each line with a budget is checked:
    • action stop: the save is refused when the line goes over;
    • action warn: you are asked to confirm, and the line and the order show Budget Limit Override.
  4. Return orders are not checked.

Check it worked​

  • On the order, Budget Control Applied and Budget Limit Verified are ticked on the checked lines. An overridden order shows a Budget Limit Override tag.

If something looks wrong​

  • "Line ID: ... - Account ... exceeds budget funds available by ... for period ... of Ledger Budget ..." The budget's action is stop. Raise the budget or lower the order.