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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Budget fail on PO invoice
Finance | Project Operations, Human Resources, ...
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Budget fail on PO invoice

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Posted on by MYGz 2,059
Hi,
 
I have PO that failed the PO Invoice Budget check. But Pre-Encumbrance and Encumbrance is turned ON in the Budget Control for PR, PO.
 
Wouldn't the budget be reserved after PO confirmation? How come PO is in received state but failing Budget Check?
 
Thanks.
 
Note: I have already looked this on AI engines, it's inaccurate in many scenarios because it's not aware of the underlying AOT table structure and AOT objects. So request the users not from F&SCM domain to not paste AI engine answers. Not that I mind reading them, It's interested to see how the AI responds, but it just makes the question as somewhat answered instead of remaining unanswered. Thanks for your understanding.
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Dynamics 365 Finance
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  • Suggested answer
    Saif Ali Sabri Profile Picture
    Saif Ali Sabri 2,346 Super User 2025 Season 2 on at
    Budget fail on PO invoice
    You're correct in expecting that, with Encumbrance accounting enabled, the budget should have been reserved at the PO confirmation stage. If the PO is now in Received state and failing budget check at the invoice stage, despite Encumbrance and Pre-Encumbrance being active, it suggests a breakdown or misalignment in how budget reservations are being handled.
    Here’s a structured approach to troubleshoot and resolve this issue in Dynamics 365 Finance (F&O / F&SCM):

    ✅ Step-by-Step Troubleshooting

    1. Confirm Budget Control Configuration

    Go to:
    Budgeting > Setup > Budget control > Budget control configuration
    Check the following:
    • Pre-encumbrance is enabled for Purchase Requisitions
    • Encumbrance is enabled for Purchase Orders
    • Budget check is enabled for Purchase Order Invoice stage
    • Make sure the budget control rules cover all financial dimensions used in the PO (e.g., Cost center, Department, Main Account, etc.)

    2. Verify PO Encumbrance Status

    Go to the PO in question, and from the header or lines:
    • Navigate to:
      Purchase Order > Accounting > Budget reservations
    Check if an encumbrance entry was created during confirmation. You should see the amount reserved and its status.
    • If you don’t see an encumbrance, the PO was not budget-reserved despite settings. This may indicate:
      • A workflow override bypassed budget check
      • A customization interfered with standard reservation logic
      • Dimension mismatch during confirmation that invalidated budget reservation

    3. Check the Budget Control Result Logs

    To get exact budget check failure reason:
    • Go to:
      Budgeting > Inquiries and reports > Budget control statistics or budget check results
    • Filter by document type = Purchase order invoice
    • Look for failure messages such as:
      • “Budget funds not available”
      • “No budget found for dimensions...”
      • “Reservation amount exceeds budget”
    This will tell you whether it's a missing budget, exceeded budget, or dimension mismatch.

    4. Review Budget Account Entries (AOT Level if Needed)

    If you have access to AOT or SQL (via X++ or Sys admin level):
    • Check table: BudgetReservationEntry
      • Look for entries related to the PO
    • Also check: LedgerBudget or BudgetTransactionHeader / BudgetTransactionLine
      • Verify budget allocations exist for the dimensions used in the PO
    If BudgetReservationEntry is empty or has ReservationStatus = Draft, it’s likely the PO confirmation process failed to post the encumbrance.

    5. Confirm Posting Profile and Account Structure Compatibility

    Misaligned posting profiles or mismatched account structures can silently cause the budget control to skip budget reservations:
    • Check that the account structure being used supports all dimensions
    • Ensure budget is allocated to the correct combination of dimensions (as per the PO)
    • Ensure posting profile used during invoice stage still routes to budget-controlled accounts

    🛠️ Fix / Workaround Options

    ✔ Option 1: Manually Reserve Budget (if PO already confirmed)

    • Go to: Budgeting > Periodic > Budget reservation journal
    • Create a manual encumbrance entry for the PO’s financial dimensions and amount
    • Validate and post the journal
    • Then re-try invoice posting

    ✔ Option 2: Reconfirm PO After Fixing Dimension Mismatches

    • If possible, cancel the confirmation, correct dimension values or budget account alignment
    • Reconfirm the PO to generate correct budget reservation
    • Proceed to receiving and invoicing

    ✔ Option 3: Check for Customizations or Extensions

    • If the PO confirmation step is customized, it's possible that the BudgetControlCheckManager or encumbrance logic is bypassed.
    • Check for extensions of:
      • PurchFormLetter_Confirm
      • BudgetControlCheckManager
      • LedgerBudgetControlHelper
    • Ensure these are not skipping budget reservation or failing silently.

    ✅ Best Practice

    Enable workflow conditionally requiring successful budget reservation before PO confirmation or invoice posting. This enforces budget validation early and helps prevent downstream errors.
    If you can share the exact budget control result message or any AOT details, I can pinpoint further.
    Let me know.

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