Associated Expenditure and Revenue Budgets

You can use the Associated Budgets component to define a relationship between revenue budgets and expense budgets. Its purpose is to increase budgeted expenditure limits automatically in relationship to budgeted, recognized, or collected revenue.

Before you can use the Associated Budgets component, you must indicate the associated expenditure budget definition when you define the revenue budget definition in the Budget Definitions component.

You have the following options when you associate budgets:

• You can designate one or more revenue budgets to increase the available spending for an expenditure budget.

• You can designate one or more expenditure budgets to have available spending increased by a revenue.

• You can make the revenue available for spending when it is budgeted, recognized, or collected, or you can increase the available spending for an expenditure budget by the greater of the collected or budgeted amount, the greater of the recognized or budgeted amount, or the lesser of either combination.

• You must assign a percentage of the revenue amount up to a maximum amount or cap to apply toward the spending balance.

The Budget Processor uses this data to determine whether a sufficient spending balance is available to pass a specific transaction. If an insufficient budget balance is available for a transaction in the expenditure budget, the Budget Processor looks up the related revenue budget activity to determine whether sufficient amounts are provided by the revenue budget to increase the available spending for the associated expenditure budget to pass the transaction. The Budget Processor passes or fails the source transaction accordingly.