Budgets are used to track and control spending for user groups, suppliers, purchasing categories (manual budgets) or based on coding dimension (dynamic budgets). You can create budgets and set details such as validity period, usage rules, and accounts coding. There are two different types of budgets in Basware Purchase:
This article explains how to configure and use dynamic budgets.
Basware P2P supports dynamic budgets, where a requisition or purchase order consumes a budget when its coding is set as described in the budget rules. Each requisition or order line can either consume a budget or not belong to any budget. If enforcement is enabled for dynamic budgets, the requisitions and orders that go above the budget total cannot be approved. Requisition and order coding defines which budget is consumed (if any). Budgets can also be consumed by external systems. Dynamic budgets are always allocated to the budget that the coding and budget rules match to.
Budgets functionality can be activated by contacting Basware Support to create a change request.
Basware support can check if the environment has either dynamic or manual budget in use.
The user rights are found in P2P Administration > Users > User Roles > Purchase
The budget-related user rights can be found under Professional Mode user roles. To manage or view dynamic budgets, you must have at least one of the following user rights:
With the appropriate user rights, users can view, manage, or activate dynamic budgets from the Data Management menu. Users can also archive budgets and comment on budgets. When user has the user rights mentioned above, they can to access budget management from P2P > Data management > General > Budgets.
Budgets are allocated automatically with dynamic budgets. When managing purchase documents, users cannot select the budget manually. Each budget has rules that define which purchase lines consume the budget.
Basic data contains the budget's header level data. When creating or modifying a budget, select and fill in the needed data for the budget's header level. It's possible to create the budget on a higher organization level and apply it to lower organization levels. The warning limit defines how much of the budget is consumed before the system gives a warning. For example when the budget is $10,000, a warning should be given when $8,000 is consumed (80% of the budget). Warnings are shown on the Budgets panel of purchase requisitions.
Budget rows show the document's spend (purchase requisition lines or order lines if order has been created) that are linked to the selected budget.
Rules are set per organization and match the budget to Purchase document line. A budget belongs to an organization. Each rule is defined to each organization or child organization if the budget is inherited by lower organization levels. Note that the budget rule lines need to be separately activated/deactivated.
Budget rules are defined by organization, account code, cost center code, project code, status, invoice dimension 1 and invoice dimension 2. It is possible to define a specific organization or codes, but it is also possible to leave the field empty or use asterisk (*). Empty value means that the field needs to be empty. Asterisk represents all values including empty value.
If budgets are enabled, users can see the Budgets panel under the Lines panel on the requisition header level.
Budgets panel lists all the lines and coding splits of all lines.
It also shows which budget the line/split consumes.
The Allocation column shows how much is used from a budget. If the current requisition causes a budget total to be exceeded, the bar is red and, if Enforcement is enabled, the requisition cannot be sent for approval.
If the bar is yellow, the warning limit is exceeded. That does not prevent approval.
Allocation in dynamic budget means the action where a purchase requisition consumes a budget when its coding is set as described in the budget rules. Every line on the purchase requisition can be configured to be associated with a specific budget or alternatively not be associated with a budget.
The color of the allocation bar blocks shows what phase of the purchase process the used budget is. The darker the blue, the later in the workflow that portion of the budget's spend is. Hovering over a budget bar will open a pop-over that describes the meaning of different colors.
A budget and a purchase can be in different currencies. Budget total uses the budget’s currency and Cost uses the purchasing currency.
The autoapproval functionality is not available for dynamic budgets. The approval process is only a role-based action. This means that the dynamic budgets need to be self-approved or approved by another user.
The picture below describes the workflow steps of dynamic budgets.
Enforcement is a setting that determines if purchase requisition can be sent forward in workflow if the budget is exceeded.
Enforcement can be done to both exported and imported budgets.
Archiving a budget closes the budget, puts its status to archived, and after this, the budget behaves like an inactive budget but cannot be activated again. It can only be opened as read-only in the budget management search. With dynamic budgets, archived budgets' rules are no longer considered when creating or editing budgets.
It is not possible to use both dynamic and manual budgets in the same environment at the same time. Organizations use either manual budgets or dynamic budgets in Basware P2P. When managing budgets, users only need to see budgets of the type that they are using.
More information how to manage dynamic budgets in P2P can be found from: Data management - Manage dynamic budgets in Edge