D365 Budgeting Cookbook (Part 2 of 3). Budget control

We have already discussed Basic budgeting D365 Budgeting Cookbook (Part 1 of 3). Basic budgeting.

In today’s post I will be describing Budget control functionality.

This is an important feature designated you to control of excesses the allocated budget. This allows you to monitor the availability of funds as well as to prevent additional activities (entering data, postings) in case if consumable budget exceeds threshold (it could be done through warnings and error messages).

The budget control system includes functions for budget planning, entering, updating and carrying forward budget, as well as availability control.

You should define the following settings in the Budget control configuration.

Define parameters. This fast tab is used for:

• to define the dimensions and the main accounts. For specified dimensions and main accounts you will run the budget check.
• to define the intervals and time spans
• to define thresholds

Over budget permissions. To determine a group for over budget.

Budget funds available. From here we need to define what will be the Budget funds available for the system. Some amounts we sum, such as original budget, a budget revision. And some amounts we subtract, such as actual expenditures and unposted actual expenditures.  In other word, we need to define the formula to calculate the Budget funds available.

Documents and journals. You need to define the source documents where you will run the budget check.

Assign budget models.

Define budget control rules. You might need to define specific combinations of financial dimension that have been determined for the budget control. Those combinations are subject to budget control.

Select Main accounts. If case if you haven’t selected main accounts as a budget control dimension on the ‘Define parameters’ fast tab you might have the ability to configure main accounts for budget control in the ‘Select main accounts’ fast tab to enforce budget control rules.

Come down to ‘Select main accounts’ fast tab you will see all available main accounts that are included within chart of accounts.

Select main account that are subject to budget control. You might select either all main accounts or range of main accounts. In general, you might select as many accounts as needed.

Once you’ve determined the list of main accounts, AX is going to run a budget control check for those, unless you’ve configured something different within budget control rules on the ‘Define budget control rules’ fast tab.

Define budget groups. When budget groups are defined, budget checking occurs at the dimension combination detail level and at the budget group level.  This is an optional setup, so if no criteria is specified, then the rule applies to all dimension values.

Define message levels. Define the user groups that will be suppressing budget control warning messages. Those users will continue receiving error messages based on their over budget permissions, but they will not receive warning message.

In case if your user combines several duties, once you define the user group in the ‘Define message level’ fast tab, which is not defined in the over budget user group, user will no longer receive warning messages.

Activate budget control. To put budget control into effect you have to activate budget control configuration by clicking Active button. Once you activate it, budget check will be started.

Navigate to Budgeting > Setup > Budget control > Budget control configuration

Switch to the Define parameters fast tab

Switch to the Over budget permissions fast tab

Switch to the Budget funds available fast tab

Switch to the Documents and journals fast tab

Switch to the Assign budget models fast tab

Switch to the Define budget control rules fast tab

Switch to the Select main accounts fast tab

Switch to the Define budget groups fast tab

Switch to the Define message levels fast tab

Switch to the Activate budget control fast tab

Once you click Activate button, ‘Activate budget control configuration’ dialog box pops up

Let’s go to the All purchase orders and create purchase order that is over our budget

Create new Purchase order with the line

Check Distributed amounts by clicking Financials – > Distribute amounts

With this we will see the financial dimensions

Then let’s perform the budget check by clicking Financials -> Perform budget checking

Since we exceeded budget, you will see an error message as well as Budget check result field will be marked with red ‘X’

You can open Budget check errors and warning form to look at the amounts that have been exceeded.

To look at what was in our budget, either click on the Budget control statistics and verify Budget funds available

Or

click on the Budget control statistics by period

Once you decrease Qty (Net amount) of your purchase order to be less or equal to Budget funds available and perform budget check again you will not see any error messages.

You will see green mark at the Budget check result field

Follow the link to review Budget planning D365 Budgeting Cookbook (Part 3 of 3). Budget planning