Summary:

Budgets are used to track and control spending for user groups, suppliers, or purchasing categories. There are two different types of budgets in Purchase:

• Dynamic budget where coding defines what is the budget the line / coding row belongs to. To read about dynamic budgets in AP, see Purchase - How to - Budgets (dynamic)
  
• Manual budget where the user selects what is the budget the whole requisition belongs to

This article will explain how to configure and use manual budgets.

 

Instructions:

User rights

The user rights are found in AP Administration > Users > User Roles > Purchase

When user has the budget-related user rights, they can access budget management from AP > Data management > General > Budgets

Read more about the budget managing and viewing rights from the article AP Purchase - How to - Budgets (dynamic)

 

Manual budgets

With manual budgets the requester can select a budget from predefined budgets for a requisition in draft phase. Budgets are available if they are active and not expired. The manual budgets are defined with filters on who can use them, in which organization, purchasing category, and for which supplier.

Enable budgets

Setting up the manual budget functionality needs Basware consultant work. Budgets functionality can be activated by contacting Basware Support to create a change request.

1. Go to the Basware Support Portal and click Request a service.
2. Click New Feature Enablement.
3. In the Account field, select your account.
4. In the Business Service field, select Business line (Purchase for the Budgets feature)
5. In the Mention the required feature to be enabled field, type "Manual budgets".
6. Click Order Now.
7. A change request ticket will be created and sent to the Change Request Management team. A Change Request Manager will prepare a quote for the feature enablement and will contact you soon.

Creating and editing manual budgets

1. If you have the user rights to view, manage, or activate budget, you can access budgets from AP > gear icon >  Data management > General > Budgets.
   
   
   
2. From here, you can either Create a new budget or Open a budget to edit it.
   
   
   
3. 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. You can create the budget on a higher organization level and apply it to lower organization levels.
   
   A budget must have the following information:
   - Name of the budget
   - Organization
   - Users who are allowed to use the budget
   - Total sum and currency
   - Warning limit in percentages: defines how much is consumed of the budget when the system gives a warning. For example, if the budget is 10 000 and the warning limit is 80%, a warning should be given when 8 000 is consumed.
   - Validity period
   The budget can have the following information:
   - One or more categories that can be used when purchasing when this budget is used
   - One or more suppliers from whom can be purchased when this budget is used
   - Coding values
   
   
   
   
4. If you have the Activate budgets user right can activate/deactivate budgets. Once activated, the budget can be used on purchase requisitions/orders. 
   
   
   
5. You can also Archive the selected budget from the same menu. Note that archiving a budget closes the budget, puts its status to archived, and after this, the budget behaves like an inactive budget but it cannot be activated again. It can only be opened as read-only in the budget management search.
   
6. Purchase documents tab shows the purchase requisition and/or order lines that are using the selected budget.
   
   
7. History & comments tab shows the history logs of creation and changes to the budget. Added comments are visible in this tab as well.
   

 

 

Budget selection

The budget selection dialog lists all the budgets that the user is allowed to select.

• There is no list narrowing based on allowed supplier/category
• The budget shows the allowed suppliers and categories

 

Budget details

When selecting a budget for a requisition, click Show more details to see valid categories and valid suppliers.

If a requisition has the category or the supplier that is not valid from the budget’s perspective, the requisition cannot be sent for approval. Either the requisition needs to be edited or the budget rules need to be changed.

 

Budget selected

After the budget has been selected, Budget panel will show how much of the budget has been used by the previous and the current requisition and how much there is left in the budget.

If you select a budget where the category or the supplier is wrong, Budget panel will show a warning.

Coding

Once the budget has been selected, coding values in all lines of the requisition are replaced by those values that are defined in the budget configuration.

Budget can be Removed from the requisition. That does not bring back the original coding values.

 

Auto approval

It is possible to set up auto approval for manual budgets. Auto approval can be set in the PR process so that the requisition does not need to be self-approved or approved by other user. To use manual budgets for auto approve, each already existing manual budget needs to be activated so that approver is updated and available for workflow.

Enabling this functionality needs consultant work from Basware's side. Please contact Basware support or request new feature enablement (see instructions below in additional information). 

 

Additional Information:

Note that it is not possible to have both dynamic and manual budgets in the same environment at the same time. Organizations use either manual budgets or dynamic budgets in Basware AP. When managing budgets, users only see budgets of the type that they are using. 

Manual budgets cannot be imported.