Budgeting [AX 2012]

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Use Budgeting to set up, create, and view budgets. Budgeting can include budget control, which you can use to monitor the budget funds that are available for planned and actual purchases and expenditures. You can create budget register entries for the original budget, budget transfers, and budget revisions. You can also create budget register entries for encumbrances and pre-encumbrances for purchases and planned expenditures. Budget register entries can be created automatically when budgets are transferred to the general ledger from other modules, such as Project management and accounting or Fixed assets. You can determine which financial dimensions from the chart of accounts are available for basic budgeting and budget control. When you configure budget control, you define budget intervals, budget cycle time spans, budget thresholds, budget managers, budget groups, and the calculation that is used to check for available budget funds. The available budget funds can be verified when source documents and accounting journals are entered. You can view the status and history of budget register entries, budget control statistics, actual versus budgeted amounts, budget details, and budget funds available.

Note This topic has been updated to include information about features that were added or changed for Microsoft Dynamics AX 2012 R2. See the section New or changed for Microsoft Dynamics AX 2012 R2, later in the topic.

New or changed for Microsoft Dynamics AX 2012 R2

Organizations typically prepare an operating budget that spans one or two years, and a capital budget that spans multiple years. An operating budget might include a spending plan for continuing services and short-term initiatives. A capital budget might include a spending plan for asset acquisitions and construction projects. In Budgeting, you can configure and set up budget planning processes based on the budget cycles and ledger for your organization. The budget planning processes contain stages and workflows that automatically route budget plans for review and approvals. The budget plans contain data in multiple scenarios that can be compared and analyzed, so that you can develop and adopt optimal budget proposals that work well for your organization.

Business processes

Budgeting at a glance
Important tasks Setting up basic budgeting Set up budget control Primary forms Budget parameters (form) Budget control configuration (form) Budget planning configuration (form) Budget planning process (form) Budget plan (form)

Key tasks: Configure budget planning and set up budget planning processes

Key tasks: Create and process budget plans

Create budget register entries View the status and history of budget registry entries Scenario: Use budget control on a purchase order

Budget registry entry (form) Budget control statistics (form)

Integration of Budgeting
Budgeting can be integrated with the following modules: General ledger Travel and expense Procurement and sourcing Project management and accounting Fixed assets Human resources

About basic budgeting [AX 2012]

Organizations, whether private or public, set financial and operational goals by creating budgets. The users who are responsible for setting up and maintaining budgets can do so by using the basic budgeting features in Budgeting. You can use basic budgeting to define the financial dimensions for budgets, create budget models, and set up and use budget register entries. You can also set up optional Budgeting workflows to automate the review of budget register entries, including budget transfers.

Note This topic includes information about financial budgets. For information about budgets for projects, see About project budgets and forecasts.

Financial dimensions for Budgeting

You can define financial dimensions for Budgeting to determine which financial dimensions and main accounts in the account structures that are associated with the chart of accounts are available for

budgeting. Some organizations might not define a specific financial dimension for Budgeting, such as the main account, to allow for more flexibility. For example, an organization could define only the Department and Cost center financial dimensions for Budgeting. Then the combinations of departments and cost centers could hold budget amounts without regard to the specific main accounts.

Budget models
Budget models identify budgets and can contain submodels. For example, you can create a budget that has submodels that represent the various departments of a legal entity.

Budget register entries

Budget register entries are used to enter budget amounts and provide an audit trail of budgeting activities. You can define budget codes for any of the budget types to track the budget register entries. For example, you could assign a budget code of Original to the budget type of Original budget. On the Budget register entry FastTab in the Budget register entry form, you would select the budget model to identify the budget, and the Originalbudget code to identify the budget type. In the Budget account entries grid, you would add a line that identifies the account structure, financial dimension values, and budget amount. The Original budget type is used for the approved budget amounts that are posted at the start of the budget year. Transfers move amounts from one financial dimension value to another. Revisions increase or decrease the budget. Pre-encumbrances and encumbrances are available with budget control. These entries reserve budget funds for source documents such as purchase requisitions and purchase orders. They are often referred to as budget reservations in the private sector and commitments in other countries/regions. Carry-forward entries can be used to indicate the unused budget amounts that were moved from one fiscal year to the next. Project, Fixed assets, Demand forecast, and Supply forecast are the subledger budget transfer types that are used to transfer budget forecasts to general ledger budgets. Public sector organizations can track preliminary budget register entries when the actual budget is being reviewed and approved. They can also use apportionment budget register entries to allocate part of a budgeted amount for spending in a specified time period.

Budgeting workflows
You can set up Budgeting workflows so that a budget manager can approve budget register entries. For example, if approval is required when budget amounts are transferred from one department to another, an approval workflow can route the budget transfer for approval. You can also set up budget transfer

rules to allow for transfers between specific financial dimensions or financial dimension values. For example, you can set up a budget transfer rule that allows for budget transfers only within a department. If a budget transfer rule was violated by a budget transfer between departments, a Budgeting workflow could route the transfer to a specific user or user group for approval.

Basic budgeting setup

Before you use basic budgeting, complete the steps that are described in the following topics. If you are using budget control, you must set up basic budgeting before you configure budget control. Required: Define budget exchange rates Required: Define Budgeting parameters and number sequences Required: Define financial dimensions for Budgeting Required: Create budget models Required: Define budget codes Optional: Define budget transfer rules Optional: Set up Budgeting workflows Optional: Set up budget allocation terms

About creating a budget from transaction accounts and total accounts [AX 2012]
You can create budgets based on transaction accounts and total accounts. Generally, these budgets involve expense accounts that have a main account type of Profit and loss.

Note For information about total accounts in budget groups, see Basic budgeting and budget control setup overview.

Creating a budget from both transaction accounts and total accounts

Typically, a budget is created from either transaction accounts or total accounts, but you can use both at the same time. In the Budget register entry details form, a budget account entry for a total account displays only the budget amount that is entered directly on the total account.

When a budget is used in reporting, such as on a financial statement, the budget sum for the total account consists of the following: The budgets that are created from each transaction ledger account in the interval of the total account. The budget amount that is entered directly on the total account. This lets you create separate budgets for the most significant transaction accounts in the interval of the total account, and then add the available budget amount to the total account.

Creating a budget from either transaction accounts or total accounts

You can also create a budget from either transaction accounts or total accounts. If you enter budget amounts for a total account, do not enter budget amounts for the transaction accounts that are included in the total interval. If you enter budget amounts for the transaction accounts that are included in the total account interval, do not enter budget amounts for the total account.

Define budget exchange rates [AX 2012]

You can define currency exchange rates between currency pairs for the Budget exchange rate type, which is already set up. For more information, see Exchange rate types (form). 1. Click General ledger > Setup > Currency > Exchange rate types. 2. Select the Budget exchange rate type and then click Exchange rates to open the Currency exchange ratesform. 3. Click New and select values in the From currency and To currency fields. For more information, see Currency exchange rates (form). 4. Enter the exchange rate. For example, type 130 to represent 130 USD for 100 EUR. 5. Click New to enter another currency pair for the Budget exchange rate type.

Define Budgeting parameters and number sequences [AX 2012]

You can use the Budget parameters form to enable budget transfers, and to specify options for revenue budgets and subledger budget transfers. You can also select the budget journal for budget appropriations and set up number sequences for Budgeting. 1. Click Budgeting > Setup > Budgeting parameters.

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Select a period allocation key for cash flow forecasts. The allocation key determines how the amount for a budget account entry is allocated in a cash flow forecast. For more information, see Period allocation categories (form). Select the Use rules for budget transfers check box to enable budget transfers. Select revenue budget options. You can allow or prevent updates if a budget register entry causes a revenue budget to go below 0 (zero). Alternatively, you can display warnings in this situation. You can also select a different time period for budget balances to aggregate for warnings or to prevent updates. Select whether to process budget register entries when they are transferred from project, fixed assets, demand forecast, or supply forecast budgets to general ledger budgets. If Enable budget appropriation is selected in the General ledger parameters form, select a budget journal to use for budget appropriations. This budget journal must have a journal type of Budget in the Journal names form. For more information, see Journal names (form).

Note Before you can select Enable budget appropriation, you must select Use posting definitions in theGeneral ledger parameters form. You must also create posting definitions and transaction posting definitions. Then, when you enter a budget register entry for an account or financial dimension combination that is used in the match criteria of the posting definition, a voucher is created in the general ledger for the generated entry from the posting definition. The generated entry uses the journal number from the selected budget journal.
7. Click Number sequences, and then select number sequence codes: o o Select a number sequence code for the Budget register entries reference. Select a number sequence code for the Commitments reference.

Note This control is available only to legal entities whose primary address is in France, and only if thePublic Sector configuration key is selected.

Select a number sequence code for the Budget plans reference.

Note This control is available only if Microsoft Dynamics AX 2012 R2 is installed.

o You can also create new number sequences by using the Number sequences form. For more information about number sequences, see Number sequences (form).

Set up Budgeting workflows [AX 2012]

Some organizations require that Budgeting documents, such as budget register entries, be approved by a user other than the person who entered them. To set up an approval process, you can create a Budgeting workflow. You can also set up other processes to update budget balances without user intervention or to have a user review the information in a Budgeting document. A workflow represents a business process. It defines how a document flows through the system and indicates who must complete a task or approve a document. There are several benefits of using the workflow system in your organization: Consistent processes You can define the approval process for specific documents, such as purchase requisitions and expense reports. Using the workflow system helps to ensure that documents are processed and approved in a consistent and efficient manner. Process visibility You can track the status, history, and performance metrics of a specific workflow instance. This helps you determine whether changes should be made to the workflow to improve efficiency. Centralized work list Users can view a centralized work list to view the workflow tasks and approvals assigned to them. This work list is available from the Role Center pages in the Microsoft Dynamics AX client and Enterprise Portal.

Note This topic has been updated to include information about features that were added or changed for Microsoft Dynamics AX 2012 R2. See the section New or changed for Microsoft Dynamics AX 2012 R2, later in the topic.

Budgeting workflows
Use this information to set up and enable workflow configurations for Budgeting documents, such as budget register entries. Based on the document type, you can require manual approval, workflow approval, or no approval. If you set up a workflow for budget account entries, the workflow must be contained in another workflow for budget register entries. If all the budget account entries in a budget register entry can be approved as group, you can use a Budget register entry workflow. If the budget account entry lines require different workflow approvals, you must use a Budget account entry workflow to create different workflow configurations. For example, you might use one Budget account entry workflow configuration to review and approve a high amount, and anotherBudget account entry workflow configuration to review and approve a low amount. You can associate budget register entry workflows with any of the budget codes that have been set up to identify the budget types. After you assign a workflow to a budget code, all budget register entries that use that budget code require workflow approval before you can update budget balances. For more information, see Define budget codes.

After you create a workflow configuration for a Budgeting document, additional controls are displayed at the top of the form when the document is saved. These controls include a yellow information bar and a Submit button or an Actions menu. For more information, see Submit a document and Workflow actions.

Note Some buttons in the Budget register entry form are not available after a budget register entry has been submitted for workflow approval. When the budget register entry or budget account entry is approved, the options in the Update and Transfer menus are available. Other controls and fields in the form might not be available. If you modify a budget register entry that has been approved, the budget register entry must be resubmitted to workflow. You cannot modify a budget register entry after you update budget balances.
For an overview of workflow in Microsoft Dynamics AX, see Overview of the workflow system and Workflow concepts. You can use workflow approvals for the following Budgeting document types.

Budgeting menu item Budget plans Note This control is available only if Microsoft Dynamics AX 2012 R2 is installed. Budget register entry

Document type Budget plan

Budget register entry Budget account entry Commitment

Budget account entries

Commitments Note This control is available only to legal entities whose primary address is in France, and only if the Public Sector configuration key is selected.

New or changed for Microsoft Dynamics AX 2012 R2

You must set up Budgeting workflows for budget plans before you set up a budget planning process. The budget plan workflow configuration that you set up is used to submit budget plans, and their worksheets and justifications, for review and approval in each stage of a budget planning process. The budget planning process defines the order of the budget planning stages and associates the process with a budget organization hierarchy. When you configure the workflow, you can assign users to a workflow task based on the budget organization, security role, or user group. When you configure a budget planning process, you associate a Budgeting workflow ID with each budget planning workflow. After the budget plan is submitted to the workflow, and a user finishes an assignment, the budget plan moves to the next budget planning stage by using the stage transition element in the Budgeting workflow configuration.

The types of workflows you can create

The following table lists the types of workflows that you can create in Budgeting.

Type Budget plan workflows Note This control is available only if Microsoft Dynamics AX 2012 R2 is installed.

Use this type to do this Create review and approval workflows for budget plans. Budget plan workflows must contain a stage transition element for each transition that moves a budget plan to the next budget planning stage. For example, a workflow for a budget planning process that has three stages requires two stage transition elements to connect the three approval elements that are associated with the three budget planning stages. For more information, see Workflows in About budget planning configuration and setup. Approve budget plan Create an approval element for budget plans. Activate associated budget plan Create an automated task to activate the budget plan that is associated with a parent budget plan. Stage transition budget plan Create an automated task to perform a stage transition for a budget plan. Budget planning stage allocation Create an automated task to perform a budget planning stage allocation that uses the allocation schedule for a budget plan scenario estimate. Flow controls Create standard workflow elements to branch decisions and activities. Review associated budget plan(s) that are completed

Create a task for a user to review the completed budget plans that are associated with a parent budget plan. Review budget plan Create a task for a user to review budget plans. Budget account entry workflow Create review and approval workflows for budget account entries. Budget account entry workflows must be included in a budget register entry workflow. Use theBudget account entry workflow element to include budget account entry workflows in a budget register entry workflow. The Budget account entry workflow type contains standard workflow elements and elements that you can use for budget account entries: Approve budget account entry Create an approval element for budget account entries. Flow controls Create standard workflow elements to branch decisions and activities. Review budget account entry Create a task for a user to review the accuracy of a budget account entry. Create review and approval workflows for budget register entries. The Budget register entry workflow type contains standard workflow elements and elements you can use for budget register entry workflows: Approve budget register entry Create an approval element for budget register entries. Update budget balances budget register Create an automated task to update budget balances. Flow controls Create standard workflow elements to branch decisions and activities. Budget account entry workflow Include a Budget account entry workflowtype. Review budget register entry Create a task for a user to review the accuracy of a budget register entry. Create approval workflows for commitments. After you set up and activate a commitment workflow, all commitments must use the workflow. The Commitments approval type contains standard workflow elements and elements that you can use for commitment approval workflows: Commitment approval Create an approval element for commitments. Flow controls Create standard workflow elements to branch decisions and activities.

Budget register entry workflow

Commitments approval Note This control is available only to legal entities whose primary address is in France, and only

if the Public Sectorconfiguration key is selected.

Commitment task Create a task for a user to review the accuracy of a commitment.

Create a workflow
To create a workflow, follow these steps. 1. Click Budgeting > Setup > Budgeting workflows. 2. On the Action Pane, click New. 3. Select the type of workflow to create. 4. Click Create workflow. The workflow editor is displayed. Design the workflow by dragging workflow elements onto the canvas. 5. Configure each element of the workflow. For more information, see Configure workflow elements. 6. Repeat steps 2 through 5 to create additional workflows for Budgeting.

Calculated fields and expressions

The following calculated fields and expressions are used with Budgeting workflow approvals. For each workflow, you can set up conditions that include the calculated fields and expressions.

Calculated field Budget check results

Description The budget control results. The possible results are Budget check passed, Budget check passed but with warnings, Budget check failed, and Budget check not performed. This field is available for Budget account entry workflow and Budget register entry workflowconfigurations. Evaluate a violation of the budget transfer rule. The possible values are Yes or No. If a budget transfer rule is violated, and the value is set to Yes, the workflow can be assigned to a user who can approve budget transfers when budget transfer rules are violated. This field is available for Budget account entry workflow and Budget register entry workflowconfigurations.

Transfer rule violated

Transaction currency amount

The transaction amount, in the accounting currency. This field is available for Budget account entry workflow and Budget register entry workflowconfigurations. Note When Transaction currency amount is used for transfers, you must include a second condition to ignore any negative amounts. For example: Where Budget account entries.Transaction currency amount is less than 100,000 And Budget account entries.Transaction currency amount is greater than 0

Types of participants
You can assign a workflow element to the following groups of participants.

User group Budget manager participants

Description Assign the workflow element to a user who is defined as the budget manager in the budget control configuration. The budget manager can approve budget register entries. Additional budget managers for financial dimension values can be defined by using budget control rules. For more information, see Budget control configuration (form). Assign the workflow element to a budget organization participant. Budget organization participants are available only for budgeting planning workflows.

Budget organization participants Note This control is available only if Microsoft Dynamics AX 2012 R2 is installed.

Security role participants User group participants

Assign the workflow element to a Microsoft Dynamics AX security role.

Assign the workflow element to a Microsoft Dynamics AX user group.

Define financial dimensions for Budgeting [AX 2012]

Use the Budgeting dimensions form to specify which financial dimensions in the account structures that are associated with the chart of accounts are available for Budgeting. Some organizations might not define specific financial dimensions, including the main account, for Budgeting, which could provide more flexibility. For example, the account structure for the chart of accounts might have Department, Cost center, and main account financial dimensions. If you select the Department and Cost center financial dimensions for Budgeting, the departments and cost centers can hold budget amounts without regard to which main account is used. 1. Click Budgeting > Setup > Basic budgeting > Dimensions for budgeting. 2. Select the financial dimensions in the Chart of accounts dimension list. 3. Click the < arrow button to move the financial dimensions to the Budget dimension list.

Create budget models [AX 2012]

You can use the Budget model form to create various budget models. You can use a single budget model for all or some of the budgets, or you can create a budget model for each budget.

Note This topic includes information about financial budgets. For information about budgets for projects, see About project budgets and forecasts.
A budget model can contain many submodels, which you attach to the budget model on the Submodel FastTab. For example, you could create a budget that has submodels that represent the various departments of the legal entity.

Note Budget models that are used as submodels cannot contain other submodels. Also, if you use budget control, you cannot use budget models that have submodels.

In the Budget model form, you can select the following check boxes for budgets that are based on a specific budget model: To indicate that the budget model and the budgets that are based on the model cannot be changed, select the Stopped check box. To indicate that budgets that are created from the budget model are included in cash flow forecasting, select the Cash flow forecasts check box. 1. Click Budgeting > Setup > Basic budgeting > Budget models. 2. Click New to create a budget model. 3. Enter an identifier and a name for the budget model. 4. Enter other details about the model as needed, and add any submodels. For more information, see Budget model (form).

Define budget codes [AX 2012]

Use the Budget codes form to set up budget codes for budget register entries. You can use budget codes to categorize budget types. For more information, see Budget codes (form). 1. Click Budgeting > Setup > Basic budgeting > Budget codes. 2. Click New and enter a code and a description, such as ExpenseTransfer and Expense to Expense. 3. Select a budget type, such as Transfer. 4. If this code should be the default code when documents of the selected budget type are automatically created, select the Set as default code check box. 5. Optional: Select a reason code. 6. Optional: Select a workflow. If a workflow is selected, every budget register entry that uses this code is submitted to workflow. For more information, see Set up Budgeting workflows.

Define budget cycles [AX 2012]

Use the Budget cycle time spans form to specify the fiscal year or the number of periods for the budget cycles that are associated with the budget cycle time span. Budget cycle time spans are associated with fiscal calendars to determine the length of each budget cycle. Like fiscal calendars, budget cycles can be shared across legal entities.

Note When you configure budget control, you assign a budget model to budget cycles. This determines the budget amounts for budget control and is specific to the ledger for the legal entity that you are configuring budget control for. For more information, see Set up budget control.
1. 2. 3. Click Budgeting > Setup > Budget control > Budget cycles. Click New and enter a name for the budget cycle time span. Select a fiscal calendar to associate with the budget cycle time span.

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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 accounting periods for the budget cycle. If you select Map to fiscal year, the budget cycle time span uses the fiscal year that is defined by the starting and ending periods for the budget cycle. Click Add. Enter the name of the first period in the budget cycle time span and enter the date when that period starts. The ending date for the budget cycle is determined automatically based on the number of fiscal periods in the budget cycle time span.

Set up budget allocation terms [AX 2012]

Use the Budget allocation terms form to define the financial dimension values and the percentages that are used to generate budget allocations. These budget allocation terms provide an automated way to distribute percentages of budget amounts across financial dimension values. For example, a travel budget can be allocated to departments by using one budget account entry. 1. Click Budgeting > Setup > Basic budgeting > Budget allocation terms. 2. Click New, and then enter an identifier and a description for the budget allocation term. 3. Click Add, and then enter the percentage of the total amount that is allocated. You can create a copy of an existing allocation term for this budget allocation term. Click Copy to select the existing allocation term. 4. Click the percentage, and then select a value for one or more financial dimensions. 5. Repeat steps 2 through 4 for each budget allocation term that you have to set up.

Define budget transfer rules [AX 2012]

You can use the Budget transfer rules form to define budget transfer rules to determine when budget transfers are allowed between financial dimension values. For example, budget transfers in a specific department might be allowed without approval, but transfers across departments might have to be reviewed and approved before the budget balance is adjusted. If a budget register entry is submitted and it violates the budget transfer rules, the transfer can be completed only if it is approved through a Budgeting workflow. For more information, see Set up Budgeting workflows. 1. 2. 3. 4. Click Budgeting > Setup > Basic budgeting > Budget transfer rules. Click New and enter an identifier and a description for the budget transfer rule. Select an account structure. Click Add to define the financial dimension criteria for a rule member. For example, you could define criteria for the Sales department. If a transfer was entered that had budget account entries that did not contain the Sales department financial dimension, the rule would stop the transfer. If workflow was activated for the budget code that is associated with the budget type, the transfer would be submitted for approval. You can click Add again to add multiple rule members to the same rule. You cannot specify the same financial dimension criteria in more than one rule member for a transfer rule. However, you

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can have overlaps in financial dimension criteria across budget transfer rules so that the same financial dimension value can belong to multiple budget transfer rules. To enable the budget transfer rules that you defined, select Use rules for budget transfers in the Budget parameters form.

Set up budget control [AX 2012]

1 out of 1 rated this helpful - Rate this topic Updated: March 25, 2011 Applies To: Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012 Budget control is available for source documents and accounting journals. Source documents include purchase requisitions, purchase orders, vendor invoices, travel requisitions, and expense reports. Accounting journals include daily journals, allocation journals, project expense journals, and fixed asset journals. Depending on how you configure budget control, source documents and accounting journals can be prevented from additional processing when a budget check indicates that the budgeted amounts are not available. Set up basic budgeting before you configure budget control. For more information, see About basic budgeting. If you plan to use Budgeting workflows, create the workflows and assign them to budget codes when you set up basic budgeting. For more information, see Set up Budgeting workflows. Set up the budget control configuration before you start submitting budget register entries.

Note

The budget control configuration provides an active version and a draft version. You can modify the draft version when the active version is turned on and budget control is in effect. You can click Restore from active at any time when you are working in a draft version. However, if you click Restore from active, all changes to the draft version are lost. If the budget control configuration is active, you must click Edit to modify the budget control configuration.

Define budget control parameters

1. 2. Click Budgeting > Setup > Budget control > Budget control configuration. Select an account structure. If you have multiple active account structures in the chart of accounts, select the account structure that will be used for profit and loss or expense accounts. This account structure includes the main account range for expense accounts. After you select an account structure, all the financial dimensions in that account structure that were defined for budgeting are displayed in the Budget dimensions list.

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Select a financial dimension and move it to the Budget control dimensions list. You select the financial dimensions for budget control from the financial dimensions that you defined for budgeting. This lets you develop budgets at one level and configure budget control at another level. For example, you could select the main account, department, and cost center financial dimensions for budgeting, and then select only the department and cost center dimensions for budget control. You can also use budget control rules to specify financial dimension combinations for budget control. For more information, see the Define budget control rules section in this topic. 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 are aggregated for budget checking. For example if you select Fiscal year, all the funds for the fiscal year are aggregated for budget checking. If you select Fiscal year to date or Budget to date, the ending date is determined from the fiscal period and the accounting date of the source document or accounting journal that is being checked. Select the budget cycle time span, which defines the length of the budget cycle. For more information, seeDefine budget cycles. Select a budget manager, which is a user who can approve budget workflows. Another budget manager can be defined by using a budget control rule. In the Budget threshold field, enter the percentage of the budget that can be spent. The threshold can be used 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. Select the Display a message when exceeding budget threshold check box to display messages when the budget threshold is exceeded.

Define over-budget permissions for user groups

You can let specific user groups exceed the available budget or restrict user groups from exceeding the available budget or budget thresholds. The Prevent processing at over budget threshold setting is applied to all users who are not in a user group. The settings in this form can be overridden by a budget control rule or budget group. 1. Click Budgeting > Setup > Budget control > Budget control configuration. Click Over budget permissions. 2. Click Add and select a user group.

Note

If you do not have user groups defined, right-click in the Group field and select View details to open the User groups form, where you can create groups and add users.
3. In the Over budget options field, select the appropriate option for this user group. o Prevent over budget processing Users in this group cannot process a budget register entry if the available budget balance is insufficient to cover the entry.

o o

Allow over budget processing Users in this group can process a budget register entry if the available budget balance is insufficient to cover the entry. Prevent processing at over budget threshold Users in this group cannot process a budget register entry if the financial dimension or main account will exceed its specified threshold to cover the entry.

Note

If the budget threshold is greater than 100 percent, the Prevent processing at over budget thresholdsetting is less restrictive than Prevent over budget processing.

Define the calculation that determines the budget funds that are available
In the Budget funds available area, you can select check boxes to determine the amounts that are added to and subtracted from the budget funds that are available. Original budget and Actual expenditures are selected by default, so that the default calculation is Budget funds available = Original budget - Actual expenditures. The budget funds calculation is displayed under the check boxes, so that you can view how the calculation changes as you select and clear the check boxes. 1. Click Budgeting > Setup > Budget control > Budget control configuration. Click Budget funds available. 2. Select the Include carry-forward amounts check box to include amounts that are carried forward as part of a purchase order year-end process, and also to carry forward budget register entries that have a budget type of Carry-forward budget. As part of the purchase order year-end process, budget amounts from open purchase orders can be carried forward into the next fiscal year. Any budget reservations for encumbrances are also carried forward. When invoices are recorded against the purchase orders that were carried forward, budget control treats the actual expenditures as carry-forward amounts, also. Therefore, inquiries and reports can display those amounts separately from the amounts that were not carried forward. 3. You can select the following check boxes to include amounts in the calculation.

Option Original budget

Amounts that will be included in the calculation Original budget register entries that have a document status of Completed. Also included are the Project, Fixed assets, Demand forecast, and Supply forecastbudget types that have a document status of Completed, which are treated as original budget amounts after they are transferred from other modules. The sum of the amounts of budget register entries that have budget types ofOriginal budget, Revision, Transfer, Carry-forward budget, Project, Fixed assets,Demand forecast, and Supply forecast.

Preliminary budget

Preliminary budget register entries that have a document status of Completed. These are used to create a preliminary budget when the actual budget is being reviewed and approved.
Note

This control is available only if the Public Sector configuration key is selected. Budget revisions Draft budget revisions Budget transfers Draft budget transfers in Draft budget transfers out Budget apportionments Budget register entries that add changes to original budgets and that have a document status of Completed. Budget register entries that add changes to original budgets and that have a document status of Draft. Budget register entries that transfer budget amounts from one financial dimension value to another and that have a document status of Completed. Transfer budget register entries that increase the budget and that have a document status of Draft. Transfer budget register entries that decrease the budget and that have a document status of Draft. Budget register entries that have a document status of Completed. Apportionments are used in the public sector to show the difference between budgeted amounts and the amounts that are approved for spending. For example, a public sector organization might have an original budget of 10,000.00 for an account and use an apportionment to approve 5000 for spending. Only the amount that is apportioned can be spent.
Note

This control is available only if the Public Sector configuration key is selected. Actual expenditures Actual expenditures that are recorded in the general ledger from expense reports, vendor invoices, and accounting journals. The amounts from the source documents or accounting journals are included in the budget check only when the source document or accounting journal is enabled for budget control.

Unposted actual expenditures

Actual expenditures that are not yet recorded in the general ledger from expense reports, vendor invoices, and accounting journals. The amounts from the source documents or accounting journals are included in the budget check only when the source document or accounting journal is enabled for budget control. Budget reservations that are created for confirmed purchase orders or travel requests, and budget register entries that have a document status of Completedand use the Encumbrance budget type. Budget reservations that are created for unconfirmed purchase orders or travel requests, and budget register entries that have a document status of Draft use theEncumbrance budget type. These are manual budget reservations that are not yet included in the overall budget balance.
Note

Budget reservations for encumbrances Budget reservations for unconfirmed encumbrances

If you do not select this check box, budget checks can still be performed on draft source documents, such as purchase orders and travel requests. However, the amount of the budget reservation is not included in the budget check for subsequent source documents. You can do this to perform a budget check on draft documents without creating a committed reservation. Reduction to budget reservations for unconfirmed encumbrances Budget reservations for preencumbrances Budget reservations for unconfirmed preencumbrances Amounts that reduce the amounts that are reserved for unconfirmed obligations to pay. Since a correction to a purchase order can be reverted, this option is intended to prevent a reduction in a budget reservation amount because of a correction to a purchase order until the correction is confirmed. Budget reservations that are created for approved and confirmed purchase requisitions, and budget register entries that have a status of Completed and use the Pre-encumbrance budget type.

Budget reservations that are created for unconfirmed and unapproved purchase requisitions, and budget register entries that have a status of Draft and use the Pre-encumbrance budget type. These manual budget reservations are created through budget register entries but are not included in the overall budget balance.
Note

If you do not select this check box, budget checks can still be performed on draft purchase requisitions. However, the amount of the budget reservation is not included in the budget check for subsequent source documents. You can do this to perform a budget check on draft documents without creating a committed reservation.

Select source documents for budget control

In the Select source documents area, you can select check boxes to determine the source documents that are subject to budget control. You can also select check boxes to enable budget checks as the lines for source documents are entered and saved. You should match the source documents that you select with the check boxes that you selected for the budget funds available calculation in the Budget funds available area. For example, if you selected Budget reservations for encumbrances to be included in the budget funds available calculation, you might want to select the Purchase orders check box. When a budget check is performed for the amounts and accounts on a purchase line, the budget control category that is assigned to the reservation is Encumbrance.

Note

A budget check is performed when a source document is created but not when it is edited. A budget check is performed when a source document is submitted to workflow and when it is approved and confirmed.
1. 2. Click Budgeting > Setup > Budget control > Budget control configuration. Click Select source documents. Select the Purchase requisitions check box. The Purchase orders and Vendor invoices check boxes are automatically selected. If you do not select the Purchase requisitions check box and you instead select the Purchase orders check box, the Vendor invoices check box is automatically selected. You can select Vendor invoices, Travel requisitions, and Expense reports independently of the other source documents.

Note

When you select Vendor invoices, invoice journals, invoice approval journals, and invoice register journals are also enabled for budget control.

3.

For each source document, you can select the Enable budget control for line item on entry check box to enable budget checking for each line as the line is entered and saved.

Note

When a purchase requisition is converted to a purchase order, a budget check is performed, even when line-level checking is not enabled. This relieves the pre-encumbrance and establishes the draft encumbrance. When an invoice is created from a purchase order, a budget check is performed, even when line-level checking is not enabled.

Select accounting journals for budget control

In the Select accounting journals area, you can select check boxes to determine the accounting journals that are subject to budget control. In addition, you can select check boxes to enable budget checks as the lines for accounting journals are entered and saved.

Note

A budget check is performed when an accounting journal is created but not when it is edited. A budget check is performed when an accounting journal is submitted to workflow and when it is approved and posted.
1. 2. Click Budgeting > Setup > Budget control > Budget control configuration. Click Select accounting journals. Select any of the following check boxes to enable budget control for accounting journals: o Daily journals o Allocation journals o Project expense journals o Fixed asset journals For each accounting journal, you select the Enable budget control for line item on entry check box enable budget checking for each line as the line is entered and saved.

3.

Assign budget models to budget cycles

You can assign a budget model to a budget cycle to perform budget checking for the budget cycle. Only one budget model can be in use for a budget cycle. A budget check is performed when the accounting date for a source document or accounting journal that is enabled for budge control is in the budget cycle.

Note

The budget cycle must be defined before you associate the budget cycle with a budget model. In the Assign budget models area, you can click the Budget models link to open the Budget model form, and you can click the Budget cycle time spans link to open the Budget cycle time spans form.
1. 2. 3. 4. Click Budgeting > Setup > Budget control > Budget control configuration. Click Assign budget models. Click Add and select a budget cycle time span. Select a budget cycle. Select a budget model. Only budget models that do not contain submodels are available for budget control.

Note

The budget cycle that is being used for budget control can also be determined by the budget cycle time span that is selected for a budget control rule.

Define budget control rules

Budget control rules are required for budget control. They determine the financial dimension value combinations for budget control. If you selected the department and cost center financial dimensions for budget control, you can define rules for specific combinations of departments and cost centers that are subject to budget control. For example, you could specify Department = Sales and Cost Center = *, where * is a wildcard character that will include any cost center.

Note

Criteria in two or more rules that cover the same financial dimension values are not allowed. If all financial dimension value combinations will be enabled for budget control, you can define a budget control rule without criteria.
The budget control rules are validated against the ledger accounts that are being used on source document accounting distributions and accounting journals. If the financial dimensions in the ledger accounts match the financial dimensions in the budget control rules, a budget check occurs.

Example: Define budget control rules to establish a different budget threshold for one department
The default budget control parameter values that you entered in the Define parameters area are used unless you specify a different budget cycle time span, budget interval, budget threshold, or budget manager for individual rules. For example, to assign a different budget threshold to only one department, you could define two budget control rules: one rule for the specific department and its budget threshold, and another rule for all of the other departments for their threshold. 1. Click Budgeting > Setup > Budget control > Budget control configuration. Click Define budget control rules. 2. Define a rule where Department 010 has a budget threshold of 90. a. Click New to create a rule, and then enter a rule name and description. b. On the Criteria FastTab, click Add filter. c. In the Where list, select the Department financial dimension. d. In the Operator list, select is, and then enter 010 as the department number. e. In the Budget threshold field, enter 90. 3. Define a second rule where all other departments have a budget threshold of 100. a. Click New to create another rule, and then enter a rule name and description. b. On the Criteria FastTab, click Add filter. c. In the Where list, select the Department financial dimension. d. In the Operator list, select is greater than and includes and enter 020, which will include all departments except Department 010. e. In the Budget threshold field, enter 100.

Example: Define user group permissions for one user group for a budget control rule
You can define a budget control rule to provide unique user group permissions to budget amounts for specific financial dimension combinations. If the default over budget option for all user groups is Prevent over budget processing, you can define a rule that has a different over budget option for one user group for specific financial dimension combinations. For example, if you define a budget control rule that has a budget threshold of 90 for Department 010, you could define user group permissions for one user group in Department 010 to allow over budget processing for that user group. 1. 2. 3. 4. 5. Click Budgeting > Setup > Budget control > Budget control configuration. Click Define budget control rules. Define a rule where Department 010 has a budget threshold of 90. Click User group budget permissions. For one of the user groups in Department 010, select Allow over budget processing in the Over budget options field.

Important

If you define budget groups, you must select the over budget options to prevent or allow

budget group checking when budget funds are not available. For more information, see Define budget groups in this topic.
6. To override the current user group budget permissions for the budget control configuration, click Copy. Select a user group to copy and then edit the specific user group budget permissions.

Select main accounts

If the main account financial dimension is not defined for budget control, you can select the main accounts that the budget control rules will be enforced for. If the main account financial dimension is defined as a budget control dimension, the main account financial dimension is included in the budget control rules, and this setup step is not required. Only main account types of Total, Profit and loss, and Expense can be selected, because these are the accounts that typically are used for actual expenditures. Accounts that have a Total type are included because you can enter budget amounts in main accounts that have a Total type. 1. Click Budgeting > Setup > Budget control > Budget control configuration. Click Select main accounts. 2. Select the check boxes to select the main accounts or click Select all to select all the main accounts. 3. You can also click Select to define a query to filter the list of main accounts.

Optional: Define budget groups

In the Define budget groups area, you can define budget groups to form a budget pool, or a collection of financial dimension values whose budgets will be pooled for a secondary budget check. The financial dimension combinations that are found in the budget control rule are always checked for budget amounts. If a financial dimension combination is also found in a budget group, a second budget check is performed at the budget group level. For example, if there was a budget control rule for all combinations of the department and cost center financial dimensions, you could also define a budget group for Department 010, which would include all the cost centers in that department. This budget group would pool the budget of all the cost centers for Department 010. If an initial budget check failed for a cost center in Department 010, a second budget check would be performed on the aggregate budget for all cost centers in Department 010.

Note

Multiple criteria can be specified for a budget group. All the criteria are used to determine the financial dimension combinations for the budget group. No overlapping criteria are allowed

across budget groups and budget group members.

1. Click Budgeting > Setup > Budget control > Budget control configuration. Click Define budget groups. The ledger name is displayed at the top of the hierarchy. Click Add to create a budget group member. Enter a budget group name and description. When you add a group member, you can add filter criteria, change user group permissions, and modify the default budget control properties. On the Criteria FastTab, click Add filter. For this example, in the Where list, you would select the Department financial dimension. In the Operator list, you would select is, and then enter 010 for the department number.

2.

3. 4. 5.

Note

To perform the secondary budget check, the Overbudget option for budget group check setting in the User group budget permissions form for budget control rules must be set to Perform budget group check when budget funds are not available.

Optional: Define message levels for user groups

In the Define message levels area, you can specify that budget control warning messages will not be displayed for selected user groups. Users in the selected user groups will continue to receive error messages based on their over budget permissions. 1. Click Budgeting > Setup > Budget control > Budget control configuration. Click Define message levels. 2. Click Select all or select the check boxes next to the user groups that will not receive budget control warning messages.

Note

If a user belongs to multiple user groups and you select one user group that includes the user, no warning messages will be displayed for that user.

Activate budget control

In the Activate budget control area, you can make a draft budget control configuration active by clickingActivate. When you turn on budget control, the active budget control configuration takes effect.

Important

If you turn off budget control, source documents and accounting journals that have a status of Draft are removed from the budget control tracking system. No additional budget checks are performed. If you turn on budget control again, you might have to manually adjust the budget to correct reserved budget amounts.
1. 2. Click Budgeting > Setup > Budget control > Budget control configuration. Click Activate budget control. Click 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. Click Turn on to start budget control by using the active configuration. The budget control status changes to Turned on, and the Turn on option is replaced with Turn off.

3.

Key tasks: Configure budget planning and set up budget planning processes [AX 2012]
Before you can configure budget planning, you must set up a budget organization hierarchy, budget plan templates, and Budgeting workflows. For more information, see Budget planning overview and About budget planning configuration and setup. When you configure budget planning, you define elements such as budget plan scenarios and budget planning stages that you use when you set up a budget planning process. When you set up a budget planning process, you combine the budget planning elements into a single process for a budget cycle, ledger, and budget organization hierarchy. This feature is available only if Microsoft Dynamics AX 2012 R2 is installed.

What do you want to do?

Learn more about... Configure budget planning Set up budget planning processes Find form help Find related tasks

Configure budget planning

The key elements to configure for budget planning are as follows: Budget plan scenarios that categorize and contain the data for the lines in the budget plans Budget planning stages that the budget plans must follow Budget planning workflows that arrange the stages and provide the structure for the access levels and permissions users must have to view and modify budget plan lines, and the data that is associated with the different scenarios and stages Additional elements that you configure include scenario constraints, allocation schedules and stages, priorities, and locations for attachments and templates. After you configure budget planning, you can set up one or more budget planning processes.

Note

If your organization has workplaces in multiple countries/regions, you can specify translated text for the names and descriptions of scenarios, stages, workflows and priorities. For more information, see Text translation (form).

Create budget plan scenarios

1. 2. Click Budgeting > Setup > Budget planning > Budget planning configuration. In the Scenarios area, click Add and enter a name and a description for the budget plan scenario. When they are displayed in the Filter by scenario, the scenarios are sorted by name. Therefore, we recommend that you use a consistent naming convention to more easily sort and identify the scenarios. For example, you might start the scenarios with a year so that all the scenarios for particular year are sorted together. Select a unit of measure class. Monetary is the typical unit of measure class, but you can select Quantity if the scenario includes quantitative data. If you select Quantity, a default unit of measure of Each is displayed. For more information, see Unit setup (form).

3.

Create budget planning stages

1. 2. 1. 2. 3. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Stages. Click Add and enter a name and a description for the budget planning stage. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Workflows. Click Add and enter a name and a description for the budget planning workflow. Select a workflow ID. Make sure that the stage transitions and the other elements and tasks in the workflow are set up for the stages in the budget planning workflow. For more information, see Workflows in About budget planning configuration and setup.

Create budget planning workflows

4.

Select the stages and move them to the Selected planning stages list. Make sure that the planning stages are in the correct order.

Define scenario constraints

1. 2. 3. 4. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Scenario constraints. Click Add and select a budget planning workflow. Select a budget plan scenario. In the Access level field, select either View or Edit. The permissions for viewing and editing budget planning data are determined by this access level, and also by whether the Add lines and Modify linescheck boxes are selected for each Budget planning stage that you select in the Budget planning processform. For more information, see Budget planning stage rules and scenario constraints in About budget planning configuration and setup.

Define allocation schedules and stage allocations for the automated workflow allocation task
1. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Allocation schedules.

Note

The allocation in the allocation schedule occurs during an automated workflow process. The scenario constraints and stage rules must be set up correctly for the workflow process to access the data in the source scenarios and allocate it to the destination scenarios. For more information, see Budget planning stage rules and scenario constraints in About budget planning configuration and setup.
2. Click Add, enter a name for the allocation schedule, and enter or select the following information: o Allocation method Select one of the following allocation methods: Allocate across periods Allocate the budget plan lines from the source budget plan scenario across periods in the destination scenario. Select the period allocation key in thePeriod key field. Allocate to dimensions Allocate the budget plan lines from the source budget plan scenario across the financial dimensions in the destination scenario. Select the budget allocation term in the Allocation term field. Aggregate Aggregate the budget plan lines from the source scenario in the associated budget plans to the destination scenario in the parent budget plan. Distribute Distribute the budget plan lines from the source budget plan scenario in the parent budget plan to the destination scenario in the associated budget plans. o Source scenario Select the source scenario. o Destination scenario Select the destination scenario.

3. 4. 5. 1. 2.

Multiply by Enter a value by which to multiply the currency amounts or quantities for the budget plan lines. For more information, see Allocations in About budget planning configuration and setup. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Stage allocations. Click Add and select a budget planning stage and budget planning workflow. Select an allocation schedule. o Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Priorities. Click Add and enter a name and a description for the priority. For more information, see Budget planning priorities in About budget planning configuration and setup. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Folders. Click Add, browse for the folder, and then click OK. Click Budgeting > Setup > Budget planning > Budget planning configuration. Click Templates. Click Add, browse for the file, and then click Open. Select the template type, which is either Justification or Worksheet.

Define budget plan priorities

Select folders for attachments

1. 2. 1. 2. 3.

Select templates for the budget planning process

Set up budget planning processes

Budget planning processes determine how budget plans can be updated, routed, reviewed, and approved in the budgeting organization hierarchy. After you set up and activate a budget planning process, users can create budget plans and submit them to workflow for updates, reviews, and approvals. 1. Click Budgeting > Setup > Budget planning > Budget planning process. Click New. 2. Enter a name and a description for the budget planning process, and then select the budget cycle and ledger. 3. On the Template folder FastTab, select the justification template to use to create justifications for the budget plans that are created by using this budget planning process. Then select the attachment folder to use to store the attachments to the budget plans that are created by using this budget planning process. 4. On the Budget planning process administration FastTab, select the budget planning organization hierarchy. Then select the budget planning workflow for each responsibility center. To assign a budget planning workflow to similar types of responsibility centers, click Assign workflow, and then select the organization type and budget planning workflow. 5. On the Budget planning stage rules and templates FastTab, select a budget planning workflow. 6. For each budget planning stage, define the following options: o Associate budget plans Select this check box if budget plans can be associated with a parent budget plan in this planning stage.

7. 8.

9.

Add lines Select this check box if budget plan lines can be added during this budget planning stage. o Modify lines Select this check box if budget plan lines can be modified during this budget planning stage. o Template Select the template to use when you create worksheets for this budget planning stage. Each stage can have a unique worksheet template. The permissions for the budget planning data are determined by the scenario constraints that you select in the Budget planning configuration form, and by whether the Add lines and Modify lines check boxes are selected for each budget planning stage. For more information, see Budget planning stage rules and scenario constraints in About budget planning configuration and setup. On the Budget plan priority constraints FastTab, select the priorities that can be assigned to the budget plans in this budget planning process. When you click Activate for the budget planning process, the State field value at the top of the form changes from Draft to In process. Users then can create budget plans by using this budget planning process. After all the budget plans that used this budget planning process are complete, you can click Complete. The budget planning process can no longer be used to create budget plans, and the State field value changes to Completed. o

Key tasks: Create and process budget plans [AX 2012]

This topic has not yet been rated - Rate this topic Updated: October 15, 2012 Applies To: Microsoft Dynamics AX 2012 R2 This topic explains how to manually create a budget plan. For information about how to automatically generate a budget plan from another budget plan, the general ledger, fixed assets, or forecast positions, see Generate budget plans from source information. A budget plan is a document that contains a header, budget plan lines, and line details. When you create a budget plan, it is automatically assigned a unique document number, and your name is displayed in the Budget plan preparer field. The budget planning process and the responsibility center of the preparer determine the organization hierarchy and the budget planning workflow for the budget plan. After you have finished preparing a budget plan, you submit it to workflow. Then the budget plan, together with worksheets, justifications, and attachments, is automatically routed through your organization for review and approval. This feature is available only if Microsoft Dynamics AX 2012 R2 is installed.

What do you want to do?

Learn more about...

Create a budget plan Create an associated budget plan Add or modify budget plan lines and line details Use worksheets and justifications in budget plans Add forecast positions to budget plan lines Submit a budget plan to workflow Find form help Find related tasks

Learn more about...

Click these links to find more information about the concepts that are discussed in this topic. Budget planning overview About budget planning configuration and setup About budget plans

Create a budget plan

Before you can create a budget plan, a budget planning process must be active. Each budget planning process is associated with a budget cycle, ledger, and budget organization. To be a budget plan preparer, you must be in a budget planning user group, or you must be a worker in a responsibility center in a budget organization hierarchy. 1. Click Budgeting > Common > Budget plans > All budget plans. On the Action Pane, in the New group, click Budget plan. 2. Enter or select information in the following fields, and then click Create: o Budget planning process Select an active budget planning process. o Responsibility center Select the responsibility center for the budget plan. By default, your responsibility center is displayed. o Parent budget plan Specify the parent budget plan, if there is a parent budget plan. o Budget plan preparer Select the name of the user who prepares the budget plan. By default, your name is displayed. o Budget planning user group For users who are outside the budget organization that is assigned to the budget planning process, select the user group whose members require access to the budget plan. o Document number The unique identification number for the budget plan. o Budget plan Enter a descriptive name for the budget plan. o Budget plan priority Select the priority of the budget plan, if your organization evaluates budget plans by priority. Back to top

Create an associated budget plan

Before you can create an associated budget plan, the budget planning process that you select must be set up for associated budget plans. Additionally, the budget organization hierarchy must have at least two

levels. TheAssociate budget plans check box for the current budget planning stage must be selected for the budget planning stage rules in the Budget planning process form. 1. Click Budgeting > Common > Budget plans > All budget plans. On the Action Pane, in the New group, click Associate plan. 2. Enter or select information in the following fields, and then click Create: o Budget planning process Specify the budget planning process for the parent plan. o Responsibility center Select the responsibility center for the budget plan. By default, your responsibility center is displayed. o Parent budget plan Specify the name of the parent budget plan. o Budget plan preparer Select the name of the user who prepares the budget plan. By default, your name is displayed. o Budget planning user group For users who are outside the budget organization that is assigned to the budget planning process, select the user group whose members require access to the budget plan. o Document number The unique identification number for the budget plan. o Budget plan Enter a descriptive name for the budget plan. o Budget plan priority Select the priority of the budget plan, if your organization evaluates budget plans by priority. Back to top

Add or modify budget plan lines and line details

Before you can add or modify budget plan lines, the budget planning process that you selected when you created the budget plan must be set up so that budget plan lines can be added and modified. The Add lines and Modify lines check boxes for the current budget planning stage must be selected for the budget planning stage rules in the Budget planning process form. 1. Click Budgeting > Common > Budget plans > All budget plans. Double-click an existing budget plan, or create a new budget plan. 2. In the Filter by scenario list, select a scenario. The Scenario constraints options in the Budget planning configuration form determine the view and edit access for each budget plan scenario. If the Add linebutton is not available, select a different scenario. 3. In the Budget plan lines grid, click Add line. When you add a line to a budget plan scenario, the line is added only to the scenario in the current budget plan. 4. Select an account structure and add the dimension values. 5. View or make any required changes to the information in the remaining fields, such as Effective date andBudget class. Then enter the unit or monetary information. 6. To allocate the budget amounts for the selected lines, click Allocate budget. Then enter or select information in the following fields that are displayed: o Allocation method Select one of the following allocation methods: Allocate across periods Allocate the budget plan lines from the source budget plan scenario across periods in the destination scenario. Select the period allocation key in thePeriod key field. Allocate to dimensions Allocate the budget plan lines from the source budget plan scenario across the financial dimensions in the destination scenario. Select the budget allocation term in the Allocation term field.

Aggregate Aggregate the budget plan lines from the source budget plan scenario in the associated budget plans to the destination scenario in the parent budget plan. Distribute Distribute the budget plan lines from the source budget plan scenario in the parent budget plan to the destination scenario in the associated budget plans. o Budget plan scenario (in the Source field group) If you selected the Aggregate allocation method, select the source scenario. If you did not select Aggregate, the source is the budget plan scenario that you selected in the Filter by scenario list. o Budget plan scenario (in the Destination field group) If you selected any allocation method except Aggregate, select the destination budget plan. If you selected Aggregate, the destination is the budget plan scenario that you selected in the Filter by scenario list. o Multiply by Enter a value by which to multiply the currency amounts or quantities for the selected lines. 7. To add forecast positions, click Select forecast positions to open the Select forecast positions form. For information about how to add forecast positions, see Add forecast positions to budget plan lines later in this topic. 8. Optional: Click Line details, and then enter or select information in the following fields: o Project ID or Proposed project Select an existing project or a proposed project for the budget line. o Fixed asset number or Proposed asset Select an existing asset or a proposed asset for the budget line. o Position Select a forecast position for the budget line. o Is recurring Select this check box if the budget line recurs each year. o New request Select this check box if the budget line is a new request. o Comment Enter a description or comment for the budget plan line. 9. On the Action Pane, click Refresh to update the form. To work with worksheets or justifications, continue to the next procedure. Back to top

Use worksheets and justifications in budget plans

Microsoft Dynamics AX can be integrated with Microsoft Word and Microsoft Excel by using the Office Add-ins for Microsoft Dynamics AX. Users can create Word justifications and Excel worksheets that are linked dynamically to the tables in Microsoft Dynamics AX. Integration for the Office Add-ins must be set up before users can use the Office Add-ins to create files. A template author creates templates for the worksheets and justifications. The templates contain fields from the budget plans. The worksheets and justifications that are created by using the templates contain the data from the budget plan that you are working with. Each budget plan has one justification template that you can use to create justification documents for that budget plan. Each budget planning stage can have a different template that you can use to create worksheets for that stage. When you save the justification or worksheet, it becomes a budget plan attachment.

When you create a justification, you can add information to support the budget plan. When you route the justification and the budget plan for review and approval, the reviewers can add comments and use change tracking to add information to the justification. When you create a worksheet, you can import the data from multiple scenarios, analyze and modify the data, and then publish the data back to the budget plan. For more information, see Create budget plan templates.

Import, modify, and publish budget plan data by using worksheets

1. 2. 3. In the Budget plan form, on the Action Pane, click Worksheet. Information is exported to the worksheet. In Excel, you can analyze, chart, and update the amounts in the worksheet. Then, on the Dynamics AX tab, click Publish to import the updated information back to the budget plan. In Microsoft Dynamics AX, on the Action Pane, click Refresh to update the form.

Create justifications for budget plans

1. In the Budget plan form, on the Action Pane, click Justification. 2. Use the features in Word to add and format information. 3. Save the file and close Word. Back to top

Add forecast positions to budget plan lines

You can select specific forecast positions to add budget amounts for personnel to the budget plan lines. These budget amounts include salary, benefits, and counts of full-time equivalents (FTEs). For information about the budgets for forecast positions, see Key tasks: Forecast positions. For information about how to automatically generate a budget plan from all forecast positions, see Generate budget plan from forecast positions (form). 1. Click Budgeting > Common > Budget plans > All budget plans. On the Action Pane, in the New group, click Budget plan. 2. Enter or select the header information, such as the budget planning process and the responsibility center. Then click Create. 3. In the Filter by scenario list, select a scenario that includes the Monetary unit of measure. 4. Click Add line, and then enter or select the information for the line. 5. To add one forecast position to the budget plan line, click Line details, and then select a forecast position in the Position list. 6. To add multiple forecast positions to the budget plan line, follow these steps:. a. Click Select forecast positions. b. Filter the positions by selecting a Department value and, optionally, a Last modified date value. c. Select the check boxes next to the positions to add, and then click Add to add the positions to the selection grid.

Tip

In the Factor field in the selection grid, you can change the factor. For example, for

half-time positions, change 1.0 to 0.50.

d. To generate an FTE count, select a budget plan FTE scenario and an FTE main account. The FTE scenario must have a Quantity unit of measure. e. Click Generate.

Submit a budget plan to workflow

To submit a budget plan to workflow, you must be either the preparer or a member of the budget planning user group that is assigned to the budget plan. Before you can submit the budget plan, all required fields must be entered, and the budget plan must contain at least one line item. The budget plan must also have a status ofDraft. For more information about how to configure workflow for budget plans, see Set up Budgeting workflows. 1. Click Budgeting > Common > Budget plans > Budget plans prepared by me. 2. Select the budget plan to submit to workflow. 3. In the workflow message bar, click Submit. 4. In the Comment field that is displayed, enter a comment, and then click Submit. 5. To recall a budget plan that you have submitted to workflow, in the workflow message bar, click Actions >Recall. 6. To view the workflow history for a budget plan that you have submitted to workflow, in the workflow message bar, click Actions > View history.

Create budget register entries [AX 2012]

Before you can create budget amounts by entering budget register entries, you must define financial dimensions for Budgeting. You must also set up budget codes, budget models, exchange rates, and number sequences. If you plan to use Budgeting workflows, create the workflows, and then assign them to budget codes. If you plan to use budget control, configure budget control before you enter budget amounts. For more information, see About basic budgeting and Define budget codes.

Note This topic includes information about financial budgets. For information about budgets for projects, see About project budgets and forecasts.

Create a budget register entry

On the Budget register entry FastTab of the Budget register entry form, you enter information for the whole budget register entry. This information includes the budget model and budget code. In the Budget account entries grid, you enter information about the budget amounts for specific financial dimension values for each line. 1. 2. 3. Click Budgeting > Common > Budget register entries > All budget register entries. On the Action Pane, click Budget register entry to create a budget register entry. On the Budget register entry FastTab, select a budget model and a budget code. For example, to create an initial budget amount, you select budget model Operations, which identifies the budget, and budget code InitalBud, which you previously defined for the Original budget budget type.

Note If workflow is activated for the budget code that you select, the budget register entry will be submitted to workflow.
4. 5. You can select a reason code. If posting definitions are enabled, you can right-click in the Posting definition field, and then click View details to verify the posting definition. The posting definition that is displayed is the posting definition that is selected for the budget type or budget code in the Transaction posting definitions form. For more information, see About posting definitions.

Note The Posting definition field is displayed only when the Use posting definitions and Enable budget appropriation check boxes are selected in the General ledger parameters form.
6. 7. 8. 9. 10. In the Budget account entries grid, click Add line. Enter a date. This date determines the period that the budget will be recorded to. Select an account structure. Enter the financial dimension values. Enter the budget amount and the budget amount type. The default budget amount type is Expense. However, you can change the value to Revenue for revenue amount types.

Note If you must increase a revenue account and an expense account at the same time, you must post a budget register entry that has a budget type of Revision.

11. Select a currency. 12. On the Action Pane, click Update budget balances. 13. Click OK, or enter batch criteria.

Create a budget transfer

You can create budget transfers by creating a budget register entry that has a budget code that is associated with the Transfer budget type. You decrease the budget of one or more financial dimension values, and then increase the budget of other financial dimension values by the same amount. 1. Click Budgeting > Common > Budget register entries > All budget register entries. 2. On the Action Pane, click Budget register entry. 3. On the Budget register entry FastTab, select a budget model and a budget code that is associated with the Transfer budget type. 4. In the Budget account entries grid, click Add line. Enter the account structure and financial dimension values to transfer a budget amount from. Then enter a negative amount, such as 1000.00. 5. Click Add line to add a line for the account structure and financial dimension values that you want to transfer the budget amount to. Then enter a positive amount, such as 1000.00. If multiple accounts must be used to increase the budget of the financial dimension values that are receiving the budget amount, add lines, and then enter a negative amount on each line. 6. Click Update budget balances. If workflow is activated for the budget code that you selected for the budget transfer, a message informs you that the budget transfer request was submitted to workflow. 7. If workflow is not activated, click OK, or enter batch criteria.

Create a budget transfer when you are creating another entry

You can create a budget transfer when you are creating a budget register entry. For example, if you see that a manual budget reservation will exceed the budget, you can create a budget transfer to satisfy the over-budget condition. You can also create budget transfers from source documents such as purchase orders and invoices, and from accounting journals. 1. 2. 3. Click Budgeting > Common > Budget register entries > All budget register entries. On the Action Pane, click Budget register entry to create a budget register entry. On the Budget register entry FastTab, select a budget model and a budget code.

Note You can create a transfer from any of the budget types, such as Original budget or Revision.
4. In the Budget account entries grid, click Add line. Then enter the date, account structure, financial dimension values, amount, and amount type.

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Save the line. Click Create transfer to open the Create budget transfer form. Verify the information at the top of the form. Then enter the from date, account structure, from financial dimension values, and amount.

Important To decrease the budget for the from financial dimension values, you must enter a negative amount. The amount that is transferred from one or more financial dimension values must equal the amount that is transferred to the selected financial dimension value. The transaction total at the bottom of the form must be 0 (zero). For more information, see Create budget transfer (form).
8. Click Update budget balances. If workflow is activated for the budget code that you selected for the budget transfer, a message informs you that the budget transfer request was submitted to workflow. If workflow is not activated, click OK, or enter batch criteria.

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Allocate budget register entries

You can allocate budget register entries across periods or to financial dimensions. Period allocation keys define the percentage of a budget register entry that is allocated to specific periods. Period allocation keys work with the fiscal year definition for the fiscal calendar that is associated with the ledger. For example, if the fiscal year starts on July 1 and ends on June 30, and the period allocation is Fixed, the allocation is applied from the current date through June 30. For more information, see Period allocation categories (form). Budget allocation terms define the percentage of a budget register entry that is allocated to specific financial dimension values. For example, a percentage of the travel budget can be allocated to various departments. For more information, see Budget allocation terms (form). 1. 2. 3. Click Budgeting > Common > Budget register entries > All budget register entries. On the Action Pane, click Budget register entry to create a budget register entry. On the Budget register entry FastTab, select a budget model and a budget code.

Note You can create allocations from any of the budget types, such as Original budget or Revision.
4. 5. In the Budget account entries grid, click Add line. Then enter the date, account structure, financial dimension values, amount, and amount type. Save the line.

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Do one of the following: o To allocate across periods, click Allocate across periods. Select a period allocation key, and then click Allocate. o To allocate to financial dimensions, click Allocate to dimensions. Select a budget allocation term, and then click Allocate. In the Budget account entries grid, verify the new lines. A reversal entry is created for the budget account that you specified, and new budget account entries are created based on the allocation that you selected. Click Update budget balances. Click OK, or enter batch criteria.

Create recurring budget amounts

For some expenses, such as rent, the budgeted amount is typically the same for each period. You can replicate a budget account entry to create a recurring budget amount. 1. Click Budgeting > Common > Budget register entries > All budget register entries. 2. On the Action Pane, click Budget register entry to create a budget register entry. 3. On the Budget register entry FastTab, select a budget model and a budget code. 4. In the Budget account entries grid, click Add line. Then enter the financial dimension values, amount, and amount type. 5. Click Enter recurrence. 6. Enter the interval type, interval, and expiration date, and then click Create. 7. In the Budget account entries grid, verify the new lines, and then click Update budget balances. 8. Click OK, or enter batch criteria.

View the status and history of budget registry entries [AX 2012]
Budget register entries let you track and audit budget activities, and can be used with workflow and with budget control. You can view budget register entries, budget control statistics, and actual versus budget totals from the following list pages and forms: Budget register entries (Click Budgeting > Common > Budget register entries > All budget register entries.) Budget control statistics (Click Budgeting > Inquiries > Budget control statistics.) Ledger - actual vs. budget inquiry (Click Budgeting > Inquiries > Actual vs. budget.)

View the status of budget register entries

You can view all of the budget register entries on the Budget register entries list page. You can select multipleDraft budget register entries and update the budget balances at the same time. You can also work with budget register entries that are submitted to workflow. If you select or open a budget register entry that was submitted to workflow, a yellow information bar appears at the top of the Budget register entries list page and the Budget register entry form. This bar includes status information and options. Near the right side of the workflow status bar, you can click the View workflow instructions icon for any instructions that were included when the workflow was set up. For more information, seeSubmit a document and Workflow actions. The Budget register entry status field displays either Draft or Completed. The Source document field displays the identifier of the source document that a budget register entry originated from. For example, a Transferbudget register entry could have originated from a purchase order. If budget control is turned on, view the icons that identify the result of budget checking. A red X indicates that the budget check failed, a yellow triangle indicates that the budget check passed with warnings, and a green check mark indicates that the budget check passed. For more information, see Create budget register entries and Budget registry entry (form).

View budget control statistics

You can view the budget balances for a budget cycle and budget model from the Budget control statistics form. 1. Click Budgeting > Inquiries > Budget control statistics. 2. Select a budget cycle and enter other information for the inquiry. 3. For additional details, select a line in the grid and then click one of the following buttons: Actual expenditures, Revised budget, Encumbrances, or Pre-encumbrances. For more information, see Budget control statistics (form).

View actual versus budget amounts in an inquiry

The budget amounts that are displayed in the Ledger - actual vs. budget inquiry form are the sum of expense and revenue budget amounts for the financial dimension value that you select. The actual amounts are a sum of the debits and credits that were processed for the financial dimension value. 1. Click Budgeting > Inquiries > Actual vs. budget. 2. Select a budget model. 3. Click Select to open a query form where you can enter criteria to specify a financial dimension value. ClickOK. 4. Enter information in the Fiscal year fields. 5. Click Update totals. For more information, see Ledger - Actual vs. budgeted inquiry (form).

Note If the Public Sector configuration key is selected and budget register entries for Preliminary budget orApportionments are used, the processed budget amounts on these inquiries could

include preliminary or apportioned budget amounts.

Scenario: Use budget control on a purchase order [AX 2012]

This scenario explains how to use budget control when you create a purchase order. In this scenario, the Department and Cost center dimensions were defined for budget control and purchase orders were enabled for budget control. The budget control configuration has been activated and turned on. For more information, see Set up budget control. You could start a similar scenario by creating a purchase requisition and converting it to a purchase order. For more information, see Create and maintain purchase orders. A budget register entry was submitted to establish a budget amount for Department 010 and Cost center 0101. For more information, see Create budget register entries. You can view the budget balances for the department and cost center before you create the purchase order. In the Budget control statistics form, you would select the budget cycle and financial dimension values for the department and cost center. For more information, see View the status and history of budget registry entries. 1. 2. 3. 4. Click Procurement and sourcing > Common > Purchase orders > All purchase orders. On the Action Pane, click Purchase order to create a purchase order. Select a vendor account. On the General FastTab, verify the accounting date. The account date determines the fiscal period for the budget check. The current date is the default date, but you can change this. In the budget control configuration, the budget control interval was set to Fiscal year so that the budget amounts for the fiscal year aggregate for the budget check. Add a line to the purchase order and enter information in the required fields, such as Procurement category,Quantity, and Unit price. Click Financials > Distribute amounts and enter the accounting distributions in the Ledger account field. For example, you might enter 606300-010-0101. Close the Accounting distributions form. If the Enable budget control for line item on entry check box was selected in the Select source documentsarea of the Budget control configuration form, a budget check icon is displayed on the purchase order line. If the Enable budget control for line item on entry check box was not selected, you can click Financials >Perform budget checking to perform a budget check on the whole purchase order.

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Note Budget checking is performed on all lines when the purchase order is confirmed and when the purchase order is submitted to a workflow, and then again when the purchase order is approved in a workflow.

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Click Budgeting > Inquiries > Budget control statistics. Select the budget cycle and the financial dimension values for the inquiry. For this example, you would select 010-0101 as the dimension values. The amount of the purchase order line is displayed in the Budget reservations for encumbrances field in the grid. Click Encumbrances. The Budget reservations for encumbrances form shows detailed information about the purchase order transaction. This includes the status, which is Draft. After the purchase order is confirmed, the status changes to Confirmed. When the invoice is received and entered, the fields in the Relieved amounts this period grid in the Budget reservations for encumbrances form are updated with information from the invoice. A budget reservation for the actual expenditure is also created.