Understanding Budget Checking
You use budget checking to identify the detail line amounts that exceed the budget for a specific job, project, department, and so forth.
Each time you enter or change a purchase order, the system checks the account number for each detail line and compares it to the available budget for the account. If the detail line amount exceeds the available budget amount, the system places the entire order on hold. You can set a budgeting processing option in the Purchase Orders program (P4310) to provide a warning message that a detail line amount exceeds the available budget amount, but the system will still place the order on hold. The system allows no further processing of the order until you remove the budget hold. You must set up budget hold codes for each business unit.
The system calculates available budget amounts by subtracting actual amounts (AA ledger) and committed amounts (PA Ledger) from the budget amount that you specify for an account number. The system uses this budget calculation:
Available Budget = Original Budget Changes − Actual amounts spent − Commitments − Encumbrances
The system uses this budget calculation for ledgers:
Available Budget = BA or JA Ledger Amounts − AA Ledger Amounts − PA Ledger Amounts
You use the processing options on the Budgeting tab from Order Entry to activate budget checking and to specify information such as:
The budget ledger from which the system retrieves budget amounts.
The hold code the system assigns to detail lines that exceed budget.
The percentage by which a detail line can exceed budget before being put on hold.
The method by which the system determines budget amounts.
Do not use the JA ledger type for budgeting. The system reserves this ledger type for JD Edwards EnterpriseOne Job Cost.
To further understand budget checking, review these topics:
Search scenarios for level of detail.
Budget totaling.
Calculating available budget to date for the fiscal year.
See Search Scenarios for Level of Detail.
See Budget Totaling.