Purchase Budget
The buying plan. Each line sets a quantity and an amount for an item, an item variant, an item group, a budget group or a sale category, spread across the periods of the budget period.
What it is for
It records the plan. The rule people get wrong: nothing checks purchases against it, and no list reads it. Spending is held to a limit by the General Ledger Account Budget, which purchase requisitions, orders and vendor invoices are checked against.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Purchase Budget | The code | Required. Locked once created. Save refuses a code already used |
| Budget Model, Budget Period | Version and span | Required. Locked once created |
| Budget Prepared By, Budget Approved By | Who prepared and approved it | Optional |
| Notes | Free text | Optional |
| Currency | The currency of the amounts | Required |
| Exchange Date, Exchange Rate | Rate to the local currency | The rate must be typed and above zero |
Budget Lines
| Field | What it means | What to put |
|---|---|---|
| Budget Base On, Budget Base On Value | What the plan is set on, and which one | As on Sales Budget |
| Unit | The unit | For an item or variant; locked for groups and categories |
| Budgeted Quantity, Transaction Amount | The plan for the span | Both above zero. Each is spread equally over the periods when typed |
| Period | Opens the breakup | Quantity and amount per period |
| Line Text | Narration | Optional |
How to configure it
Default values per company come from Budget Setting.
If something looks wrong
- "Exchange Rate Cannot be Zero". Type the exchange rate, 1 for the local currency.
- "Budget Lines Data cannot be Empty", "Budget Quantity Cannot be Zero", "Transaction Amount Cannot be Zero". Add lines with a quantity and amount above zero.
- A purchase over the plan was not stopped. Expected: use the General Ledger Account Budget to stop spending.