Tracking budget during the PO/PR process

Hi,

I have had some experience with a similar requirement before.

In that scenario, the budget defined in the BID module needed to flow down to the purchasing lines for the project. For example, the Purchase Requisition lines would need to have budget information based on criteria such as the inventory part, product family, product code, and project.

As requisitions are converted into Purchase Orders and the purchasing process progresses, the corresponding amounts would then need to be deducted from the allocated budget, so that the remaining budget could be tracked and used during the approval process.

As far as I know, there is no standard functionality that provides this kind of budget tracking and consumption directly at the Purchase Requisition/Purchase Order level without using a Project connection. It would therefore likely require some customization or a specific solution approach.

Hi ​@Tharanga Lakmali 

I am trying to setup the same with the goal of reducing the administrative burden of our Office Manager. Because we have quite a few recurring purchases where we in the past tried to get authorizations every single time, we came up with exactly like a plan like yours. For example, once the budget for the stationary Supplier A is finalized, we raise one PO with the stationary items we purchase from A for the budgeted euro amount for that supplier and get the authorizations completed  at the beginning of the year. Then throughout the year, do partial receipts for the monthly purchases and towards the end of the year close the PO if the budget is not exceeded. That's our plan. I need to get into the testing mode today on this. 

To track the budget against those partial receipts, we can configure a report, I thought. 

Another idea - If your customer's organization uses Blanket PO feature, you can automatically release purchase orders against pre agreed prices for a defined period right? For us that's not an option since we are not able to get prices locked in for some of such recurring supplies. 

Asela

Hi ​@Asela Munasinghe , Thanks a lot for the ideas.

Here in my customer’s case, the customer needs to authorize each purchase that is made and the authorization will be based on the allowed budget limits for a given unit/ department and to see how much is remaining to be utilized during the year, if the selected purchase is approved. Based on that the Management/supervisors will do the approval. Here actually the requirement is not to skip the authorization process, but to do it via reviewing the budget allocations and available limits.

Thanks and Best Regards

Tharanga