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E1: 43: Budget Checking in Procurement (P4310, P14101, P14102, P14103) (Doc ID 2197137.1)

Last updated on AUGUST 12, 2020

The Procurement module allows the ability to interactively perform budget checking at the time of Purchase Order Entry (P4310). This functionality is used to control the expenses of different departments, allowing users in the purchasing cycle to expend to a specified limit. If this limit is met, the system will prevent the processing of more orders by placing them on hold and requiring other user intervention.

In simple terms, when a purchase order is entered, the system will check the expense account entered at the level of detail specified and look to see if there is a budget available for the entered amount. If there is an available budget, the system will subtract the amount of the purchase order detail line from the available budget and will let the user continue. If no budget is available, the system will place the order on budget hold.

When a purchase order is entered, the system will check the account at the level of detail specified and look to see if there is a budget available for the entered amount.  If there is an available budget, the system will subtract the amount of the purchase order detail line from the available budget and will let the user continue.  If no budget is available, the system will place the order on budget hold.


The budgeting functionality is active only for orders entered with an inventory interface of A, B, or C on the line type definition. This is because an account number is needed to check the budget. For details on these inventory interface types, see the following document: E1: 43: Line Types in Procurement (Doc ID 625509.1).

Budgeting doesn't allow for multi-currency processing. Foreign transactions will be converted to domestic mode in order to check the budget.  

There are two types of Budgeting which are supported in Procurement. They are Standard Financial Budgeting and Job Cost Budgeting.

The flow of Budgeting goes like this:

1.    An account is created.
2.    A budget is allocated for a Fiscal Year.
3.    Purchase orders are entered for that account.
4.    The budget is allocated until there is no longer an open budget amount.
5.    Once the budget is used up, new orders can be placed on hold.

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