Exercise – Set up budget control components
In this exercise, you'll set up budget control for your company.
Before you begin
To get the most benefit from this exercise, we recommend that you have the standard sample data available in Finance that's installed by using Microsoft Dynamics 365 Lifecycle Services. Select the USMF company in the sample data.
Instructions
To set up budget control, follow these steps.
Open Budgeting > Setup > Budget control > Budget cycles.
Select New and enter a name for the budget cycle time span.
Select a fiscal calendar to associate with the budget cycle time span.
In the Length of budget cycle field, select Specify number of periods or Map to fiscal year.
If you select Specify number of periods, enter the number of fiscal periods for the budget cycle.
If you select Map to fiscal year, the budget cycle time span uses the fiscal year that the starting and ending periods define for the budget cycle.
Select Add. Enter the name of the first period in the budget cycle and then enter the date when that period starts. The system automatically determines the ending date for the budget cycle based on the number of fiscal periods in the budget cycle time span.
Open Budgeting > Setup > Budget control > Budget control configuration.
Select Create draft if no account structure is listed. Otherwise, select an Account structure. If you have multiple active account structures in the chart of accounts, select the account structure that you want to use for profit and loss or expense accounts. This account structure includes the main account range for expense accounts.
After you select an account structure, the Budget dimensions list displays all financial dimensions in that account structure and the defined advanced rules for budgeting.
Select a financial dimension and move it to the Budget control dimensions list.
Select a Budget control interval, such as Fiscal year or Fiscal year to date. The budget control interval works with the budget cycle to determine how amounts aggregate for budget checking. For example, if you select Fiscal year, the system aggregates all funds for the fiscal year for budget checking. If you select Fiscal year to date or Budget to date, the system determines the ending date from the fiscal period and the accounting date of the source document or accounting journal that you're checking.
Select the Budget cycle time span, which defines the length of the budget cycle.
Select a Budget manager, which is a user who can approve budget workflows. You can define another budget manager by using a budget control rule.
In the Budget threshold field, enter the percentage of the budget that user groups can spend. You can use the threshold to provide warning messages or to define budget permissions to prevent specific user groups from exceeding the budget threshold. This threshold can exceed 100 percent.
Set the Display a message when exceeding budget threshold option to Yes to display messages when user groups exceed the budget threshold.
Select the Over budget permissions tab.
Select Add to create a new rule.
Select the desired User group.
Select the Over budget option.
Select the Activate budget control tab.
Select Budget funds available, and then select desired checkboxes to formulate how the system calculates available funds.
Select the Documents and journals tab.
Select the Purchase requisitions checkbox. The system automatically selects the Purchase orders and Vendor invoices checkboxes.
If you don't select the Purchase requisitions checkbox and instead select the Purchase orders checkbox, the Vendor invoices checkbox is automatically selected.
You can select Vendor invoices, Travel requisitions, and Expense reports independently of the other source documents.
For each source document, you can select the Enable budget control for line item on entry checkbox to allow budget checking for each line as users enter and save the line.
Select the Assign budget models tab.
Select Add and then select a budget cycle time span.
Select a Budget cycle.
Select a Budget model. Only budget models that don't contain submodels are available for budget control.
Select the Define budget control rules tab. Define rules as desired.
Select the Select main accounts tab.
Select the checkboxes to select the main accounts, or you can select the Select all option to select all main accounts.
Select the Activate budget control tab.
Select Activate to make the draft version of the budget control configuration active. The Date when last activated field displays the current date, and the Activated by field displays your user ID.
Select Turn on to start budget control by using the active configuration. The budget control status changes to Turned on, and the Turn on button shows as Turn off.