80220A- Financials II Appendix for Microsoft Dynamics AX 2012 R2

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80220A- Financials II Appendix for Microsoft

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CHAPTER 1: BUDGETING

Procedure: Define Budget Exchange Rates

You can define currency exchange rates between currency pairs for the Budget exchange rate type,

which is already set up For more information, refer to Exchange rate types form

1 Open General ledger > Setup > Currency > Exchange rate types

2 Select the Budget exchange rate type and then click Exchange rates to open the Currency exchange rates form

3 Click New and select values in the From currency and To currency fields

4 Enter the exchange rate For example, type 130 to represent 130 U.S dollars (USD) for 100 euros (EUR)

5 Click New to enter another currency pair for the Budget exchange rate type

Procedure: Define Budgeting Parameters and Number Sequences

The Budget parameters form allows you to enable budget transfers, and specify options for revenue

budgets and sub ledger budget transfers You can also select the budget journal for budget

appropriations and set up number sequences for budgeting

1 Open Budgeting > Setup > Budgeting parameters

2 Select a period allocation key for cash flow forecasts The allocation key determines how a budget account entry amount is allocated in a cash flow forecast

3 Select the Use rules for budget transfers check box to enable budget transfers

4 Select revenue budget options You can select to allow or prevent updates if a budget register entry causes a revenue budget to go below zero, or display warnings in this situation You can also select a different time period for budget balances to aggregate for warnings or to prevent updates

5 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

in the General ledger parameters form This budget journal must have a journal type of Budget in the Journal names form

NOTE: Before you can select Enable budget appropriation, you must select Use posting definitions in the General ledger parameters form, and then 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 the Number sequences tab

• 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 the

Public Sector configuration key is selected

Procedure: Define Financial Dimensions for Budgeting

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

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

Procedure: Create Budget Models

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

A budget model can contain many sub models, which you attach to the budget model on the Submodel

Fast Tab For example, you could create a budget that has sub models that represent the various departments of the legal entity

NOTE: Budget models that are used as sub models cannot contain other sub models Also, if you use

budget control, you cannot use budget models that have sub models

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 Open Budgeting > Setup > 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 sub models

Procedure: Define Budget Codes

Use the Budget codes form to set up budget codes for budget register entries You can use budget

codes to categorize budget types

1 Open Budgeting > Setup > Budget codes

2 Click New and enter a code and a description, such as Expense Transfer 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 Optionally, select a Reason code

6 Optionally, select a Workflow If a workflow is selected, every budget register entry that uses this code

is submitted to workflow

Procedure: Define Budget Transfer Rules

In Budget transfer rules form you can define budget transfer rules to determine when budget transfers are allowed between financial dimension values For example, budget transfers in a specific department

2 Click New and enter an identifier and a description for the budget transfer rule, and then select an Account structure

3 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 is entered that has budget account entries

that do not contain the Sales department financial dimension, the rule would stop the transfer If workflow is activated for the budget code that is associated with the budget type, the transfer is

submitted for approval

4 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 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

5 To enable the budget transfer rules that you defined, select Use rules for budget transfers in the Budget parameters form

Procedure: Set Up Budget Allocation Terms

You can use the Budget allocation terms form to define the financial dimension values and the

percentages that will be used to generate allocations in the budget account entries for budget register entries This is an optional procedure for setting up budgeting

Budget allocation terms provide an automated way to distribute percentages of budget amounts across financial dimension values For example, a travel budget could be allocated to departments with one budget account entry

1 Open Budgeting > Setup > Budget allocation terms

2 Click New and enter an identifier and a description for the budget allocation term

3 Click Add and enter an allocation percentage of the total amount

4 Click Copy to select an existing allocation term to copy for this budget allocation term

5 Click the percentage and select a value for one or more financial dimensions

6 Repeat steps 2 through 4 for each budget allocation term to set up

Procedure: Define Budget Control Parameters

To define budget control parameters, follow these steps:

1 Open Budgeting > Setup > Budget control configuration

2 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 are defined for budgeting are

displayed in the Budget dimensions list

3 Select a financial dimension and move it to the Budget control dimensions list

To define default budget control parameters, follow these steps:

1 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

2 Select the Budget cycle time span, which defines the length of the budget cycle For more

information, refer to Define Budget Cycles topic

3 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

4 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

5 Select the Display a message when exceeding budget threshold check box to display messages

when the budget threshold is exceeded

Procedure: Defining Over Budget Permissions

Over budget permissions are used to determine whether specific user groups can exceed budget funds available, or if they are restricted from exceeding budget funds available or budget thresholds By default

if a user is not in a user group, the default setting of "prevent over budget processing" is applied The available selections for over budget options are as follows:

• Prevent over budget processing

• Allow over budget processing

• Prevent processing at over budget threshold

To define over budget permissions, follow these steps:

1 Open Budgeting > Setup > Budget control configuration

2 If the current budget control configuration is active, a message will appear at the top of the form Click

Edit to modify the configuration

3 Click the Over budget permissions tab

4 Click Add to create a new rule

5 Select the desired User group

6 Select the Over budget option

7 Click the Activate budget control tab

8 Click Activate, and if the Budget control configuration is not turned on, click Turn on

9 Click Close to exit the Budget control configuration form

Procedure: Select Source Documents for Budget Control

To select source documents for budget control, follow these steps

1 Open Budgeting > Setup > Budget control configuration Click Select source documents

2 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

3 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

4 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

Procedure: Select Accounting Journals for Budget Control

In the Select accounting journals tab on the Budget control configuration, 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 It is also rechecked when the

accounting journal is edited if the Line entry option is turned on A budget check is performed when an accounting journal is submitted to workflow and when it is approved and posted

To select accounting journals for budget control, follow these steps

1 Open Budgeting > Setup > Budget control configuration Click Select accounting journals

2 Select any of the following check boxes to enable budget control for accounting journals:

• Daily journals

• Allocation journals

• Project expense journals

• Fixed asset journals

3 For each accounting journal, 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

Procedure: Create a Budget Cycle

budget amounts for budget control and is specific to the ledger for the legal entity for which you are

configuring budget control

To create a new budget cycle time span, follow these steps:

1 Open Budgeting > Setup > Budget cycles

2 Click New and enter a name for the budget cycle time span

3 Select a fiscal calendar to associate with the budget cycle time span

4 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

5 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

Procedure: Assign Budget Models to Budget Cycles

To assign a budget model to a budget cycle, follow these steps:

1 Open Budgeting > Setup > Budget control configuration

2 Click the Assign budget models tab

3 Click Add and then select a budget cycle time span

4 Select a Budget cycle

5 Select a Budget model Only budget models that do not contain sub models 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

Budget Control Rules Example

This example defines budget control rules to establish a different budget threshold for one

department

1 Open Budgeting > Setup > Budget control configuration Click Define budget control rules

2 Define a rule where Department 025 has a budget threshold of 90 a Click New to create a rule, and

then enter a rule name and description On the Criteria Fast Tab, click Add filter

• In the Where list, select the Department financial dimension

• In the Operator list, select is, and then enter 025 as the department number

• In the Budget threshold field, enter 90

3 Define a second rule where all other departments have a budget threshold of 100 Click New to

create another rule, and then enter a rule name and description On the Criteria Fast Tab, click

Add filter

• In the Where list, select the Department financial dimension

• In the Operator list, select is greater than and includes and enter 024, which will include all

departments except Department 024

• In the Budget threshold field, enter 100

Procedure: Select Main Accounts

If the main account financial dimension is not defined for budget control, you must 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

3 You can also click Select to define a query to filter the list of main accounts

Procedure: Define Budget Groups

To define budget groups, follow these steps:

1 Open Budgeting > Setup > Budget control configuration Click Define budget groups

2 The ledger name is displayed at the top of the hierarchy

3 Click Add to create a budget group member Enter a budget group name and description

4 When you add a group member, you can add filter criteria, change user group permissions, and

modify the default budget control properties

5 On the Criteria Fast Tab, click Add filter

6 For this example, in the Where list, you would select the Department financial dimension

7 In the Operator list, you would select is, and then enter 010 for the department number

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

Procedure: Define Message Levels for User Groups

In the Define message levels tab of the Budget control configuration form, 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 Open Budgeting > Setup > Budget control configuration

2 Click the Define message levels tab

3 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

Procedure: Activate Budget Control and Configurations

To activate and enable budget control, follow these steps:

1 Open Budgeting > Setup > Budget control configuration

2 Click Activate budget control to make the draft version of the budget control configuration active

Additional Notes:

CHAPTER 2: USE AND MANAGE BUDGETS

Procedure: Create Budget Register Entries

To create budget registry entries, follow these steps:

3 Select the Budget model (identifier of budget) whose budget balance will be affected by the processing

of this transaction

4 Select the Budget transaction code to classify the budget register entry

5 Optionally, specify a Reason code for the budget register entry

6 Set the focus in the lines grid The Date for the budget register entry line determines the period that

the budget will be recorded to

7 Select an Account structure

NOTE: The step of assigning an account structure to a budget account entry is required because not all

dimensions in an account structure may be enabled and the same budget enabled dimension may be in use within multiple account structures for the chart of accounts

8 Enter the Dimension values for the budget enabled dimensions The order in which the dimensions are

entered is based on the order in which the dimensions appear within the account structure

9 Enter the budget Amount and the budget Amount type The budget amount type will default to

expense, but can be changed The amount type is needed since the main account is not a required element for budgeting

10 Specify the transaction Currency

11 Click Update the budget balances on the Action Pane By taking this action, the budget balance for

the budget model and dimension combination will be updated based on the amount for the period in which the line date falls

Procedure: 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 Open Budgeting > Common > Budget register entries

5 Enter the account structure and financial dimension values to transfer a budget amount from

6 Enter a negative amount, such as -1000.00

7 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

8 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

9 Click Update budget balances and then click OK

Procedure: Create a Budget Transfer When You Create Another Entry

You can create a budget transfer when you are creating a budget register entry For example, if you notice 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 Open Budgeting > Common > Budget register entries

2 On the Action Pane, click Budget register entry to create a budget register entry

3 On the Budget register entry Fast Tab, 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 Save the line

5 Click Create transfer to open the Create budget transfer form

6 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

• If workflow is not activated, click OK, or enter batch criteria

Procedure: Create Recurring Budget Register Entries

For some expenses, such as rent or lease, the amount that is budgeted will typically be the same amount for each period You can replicate a budget account entry to accommodate this need

For example, you decide to create a budget account entry every month until 12/31/2013 You perform this function on 6/22/2013 Therefore, after you apply this function, you will have budget transaction line for every month through the end of the year

To create a recurring budget register entry, follow these steps:

1 Open Budgeting > Common > Budget register entries

2 On the Action Pane, click Budget register entry to create a budget register entry

3 On the Budget register entry Fast Tab, 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 Click

OK, or enter a batch criterion

Procedure: Allocate a Budget Amount Across Dimension Values

Budget allocation terms can be used to define a pre-determined allocation to dimension values by

percentage For example, if specific budgeted amounts for travel are allocated based on a percentage by department; that allocation can be defined by using an allocation term that is later used when you

creating budget amounts The use of an allocation term provides an automated way to create the

breakdown of a budget amounts across dimension values or combinations of dimension values To

perform this function setup of budget allocation terms is required

1 Open Budgeting > Common > Budget register entry

2 Follow the steps outlined in Procedure: Entering Budgets to create a budget account entry and save it

3 Select the line that you just created

5 Select the Allocation term and then click Allocate Notice that the original budget account entry is

reversed and new budget account entries are created based on the definition of the budget

allocation term

6 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

7 Click Update budget balances Click OK, or enter a batch criterion

Procedure: Allocate Budget Amounts Using a Period Allocation Key

Period allocation keys let you define allocations by percent to specific periods The period allocation key

functionality is not new to Microsoft Dynamics AX 2012 and can be defined from General ledger > Setup

> Periods > Period allocation key

1 Define the Period allocation key and give it a name on the Period allocation key form

2 Click Lines and create lines You can allocate percentages by month

You can also specify the dimension values that should be allocated the defined percentage

3 Click the Financial dimensions tab and enter the dimensions values

4 To apply the period allocation key to a budget account entry click Allocate across periods from the Budget register entry form After applying the period allocation key, a reversal is created for the

budget account entry

The budget account entry is entered together with a new budget account entry that is based on the percent allocation by month which is defined in the period allocation key

Lab 2.1 - Create and Manage Budgets

To create and manage budgets, follow these steps:

1 Open Budgeting > Common > Budget register entries

2 Click Budget register entry in the New group of the Action Pane

3 Select "FY2013" for the Budget model

4 Select "Original Budget" for the Budget code to classify the budget register entry

5 Click the Budget account entries tab and then click Add line

6 Type the Date for the budget account entry that determines the period that the amount will be

recorded to

7 Select " Manufacturing P&L" in the Account structure field

8 Enter the Dimension values "601502-001 -"

9 Enter "65,000.00" in the Amount field

10 Specify the transaction Currency as "USD"

11 Save the record by pressing Ctrl+S

12 Click Allocate across periods

13 Select "20: Sales curve" from the list, and then click Allocate The system will automatically reverse

the original budget account entry and create new budget account entries for each period

14 Click Update budget balances

15 Click OK to process budget register entries When the process is finished, the Infolog form will open Click Close to exit the Infolog form

16 Close the Budget register entry form

Lab 2.2 - Create a Budget Transfer

Scenario

Brad, the Budget Manager, has been analyzing the travel expenses recently and want to make some

changes to the budget to better align the budgets with the sales forecast and travel schedules

Use the information provided in the following table to create a new budget register entry to add 10,000 U.S dollars (USD) to the Conference account (601502) Then create a budget transfer to reallocate 8,000 USD from the Travel Expenses account (601500) and evenly allocate to the Entertainment Expenses

account (601503) and the Car Rental Expense account (601501)

Budget model FY2013 Budget code Adjustment

Account Structure Manufacturing P&L

Step by Step

1 Open Budgeting > Common > Budget register entries

2 Click Budget register entry in the New group of the Action Pane

3 Select FY2013 in the Budget model field

4 Select Adjustment in the Budget code field

5 Select ADJ in the Reason code field

6 Set the focus in the lines grid

7 Click Add line

8 Select Manufacturing P&L in the Account structure field

9 Select 601502-001 -in the Dimension values field

10 Enter 10,000 in the Amount field

11 Select USD in the Currency field

12 Click Create transfer

13 Press CTRL+S to save the budget transfer

14 Type 601500-001 in the To dimension values field

15 Enter -8000.00 into the Amount field

16 Select Manufacturing P&L in the Account structure field

17 Select 601501-001 in the From dimension values field

18 Enter 4000.00 into the Amount field

19 Click Add line and then select Manufacturing P&L in the Account structure field

20 Select 601503-001 in the From dimension values field

21 Enter 4000.00 into the Amount field

25 Click Update budget balances in the Action Pane

26 Click OK

27 Close the Infolog form

Procedure: Turn on Budget Control

Before you can use budget control on a purchase order, you must activate budget checking for purchase orders and turn on the budget control configuration Follow these steps, to activate budget checking for purchase orders and turn on the budget control configuration

1 Open Budgeting > Setup > Budget control configuration

2 Click the Select source documents tab

3 Verify that the Purchase orders check box is selected If it is not, click Edit and then select the

Purchase orders check box

4 Click the Activate budget control tab

5 Verify that the Budget control configuration is active If it is not, click Activate

6 Verify that the Budget control configuration is turned on If it is not, click Turn on

Procedure: Create Budget Register Entries

To enter and view budget register entries, follow these steps:

1 Open Budgeting > Common > Budget register entry

2 Click Budget register entry in the New group of the Action Pane

3 Select the Budget model and Budget code

NOTE: Budget codes must be setup prior to creating budget register entries

4 Optionally, select a Reason code and enter a Reason comment

5 Save the record

6 Click Add line in the Budget account entry Fast Tab

7 Select the Account structure and enter the Dimension values

8 Enter the budget amount into the Amount field

9 Click Update budget balances to update the budget amounts for the budget enabled dimensions

10 Click OK to complete the update

11 When the process is finished, click Close on the Info log form, and then close the Budget register entry form

Procedure: Use Budget Control on a Purchase Order

To use budget control on a purchase order and follow the reservation through to vendor invoice, follow these steps:

1 Open Accounts payable > Common > Purchase order > All purchase orders

2 Click Purchase order in the New group of the Action Pane and then select a vendor

3 Click Yes to transfer the address, and then click OK to create the purchase order

4 In the Purchase lines tab, select the Item number

5 Enter a Quantity of 1 and Unit price of 200.00

6 Enter the accounting distributions by clicking Financials tab > Distribute amounts

7 Enter ledger account: "606300-001-023 "

8 If the user selected the Perform the budget check on line entry for purchase order setting in the Budget control configuration form, then when you close the Accounting distribution form you will

notice the budget check result displaying on the purchase order line In this example, the budget check

is successful

9 Review the budget control statistics by opening Budgeting > Inquiries > Budget control statistics from

the breadcrumb bar

10 Select Budget cycle "FY2013" and Dimension values "606300" The system will display a 200.00 USD

reservation for encumbrance

11 Drill down by using the encumbrance's Action Pane to see the transaction making up that balance The purchase order is shown and the status of the budget reservation is Draft

12 Confirm the purchase order by going to the Purchases tab on Action Pane and clicking Confirm

Lab 2.3 - Use Budget Control on a Purchase Order

Scenario

Recently, administrative expenses are larger than previous years because of additional shifts at the

manufacturing plants Ken, the Controller, has decided that the budget available for the Office Supplies Expense account (606300) should be increased He must first establish the budget amounts, and then users can start to enter the expenses

Use the information provided in the scenario to set up the budget register entries Use the information in the following table to guide you

Budget model FY2013 Budget code Original Budget Account structure Manufacturing P&L Dimension values 606300-001-023 Budget amount 10,000 USD Create a new purchase order for Datum Receivers for 1000 pieces in the procurement category of

OFFICE AND DESK ACCESSORIES Perform a budget check on that order and review the budget check errors and warnings Next, decrease the quantity on the purchase order to 19 and perform another

budget check When you are finished, confirm the purchase order Use the information in the following table to guide you

Dimension values 606300-001-023

Procurement category OFFICE AND DESK ACCESSORIES

Step by Step: Create Budget Register Entries

To create budget register entries, follow these steps:

1 Open Budgeting > Common > Budget Register Entries

2 Click Budget register entry in the New group of the Action Pane

3 Select "FY2013" in the Budget model field, and then select "Budget" in the Budget code field

9 Save the record and then click Update budget balances to update the budget amounts for the

budget enabled dimensions

10 Click OK to complete the update

11 When the process is finished, click Close on the Infolog form, and then close the Budget register

entry form

Step by Step: Use Budget Control on a Purchase Order

To use budget control on a purchase order and follow the reservation through to confirmation, follow these steps:

1 Open Accounts payable > Common > Purchase orders > All purchase orders

2 Click Purchase order in the New group of the Action Pane, and then select vendor US-105: Datum Receivers, and then click Yes to transfer the address if the dialog appeared

3 Click OK to create the purchase order, and then a new line will be added to the Purchase order

automatically

4 Select the Procurement category OFFICE AND DESK ACCESSORIES

5 Enter "1000" in the Quantity field, enter "ea: each" in the Unit field, and then enter "199.95" in the Unit price field

6 Enter the accounting distributions by clicking Financials > Distribute amounts

7 Enter Ledger account: "606300-001-023 ", and then close the Accounting distributions form

8 Click Financials > Perform budget checking

9 An error message is received warning the user that the budget has been exceeded Close the Infolog

form, and then click Financials > Budget check errors or warnings

10 Review the errors or warnings in the Budget check errors or warnings form, and then close the

form when you are finished

11 Change the Quantity on the purchase line to 19, and then click Financials > Perform budget checking

12 Notice the green validation check box on the left side of the purchase line grid row Confirm the

purchase order by clicking the Purchases tab on the Action Pane and then click Confirm

13 Close the Purchase order form

Procedure: View Budget Control Statistics

You can view the budget balances for a budget cycle and budget model from the Budget control statistics

form

1 Open 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

Procedure: 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 Open 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 Click OK

4 Enter information in the Fiscal year fields

5 Click Update totals

NOTE: If the Public Sector configuration key is selected and budget register entries for Preliminary budget or

1 Open Budgeting > Reports > Budgets, and then click the desired report from the folder

2 Enter any report parameters required

3 Click Select to enter additional filtering criteria

4 Click OK to initiate the report

Procedure: Transfer a Budget

Perform the following steps to transfer budget data:

1 Click Cost accounting > Journals > Budget overview

2 In the Budget model field, select a Budget model of the type Cost accounting budget

3 Click Transfer budgets

4 In the Upgrade job field, select the direction you want to move the budget values (either Transfer from or Transfer to)

5 Transfer from will transfer existing budget amounts from General ledger into the selected Cost

accounting budget

6 Transfer to will transfer existing Cost accounting budget amounts into the selected General ledger

budget

7 Select a Budget model from the General ledger

8 Select the Delete budget before updating check box to reverse existing budget values in the

actual budget

Additional Notes:

CHAPTER 3: COMMITMENT ACCOUNTING

Procedure: Set Up Posting Definitions

To set up a posting definition, follow these steps:

1 Click General ledger, then Setup, then Posting, and then Posting definition

2 Click the New button to create a new posting definition

3 Enter a name and description for the posting definition You can enter a longer description on the

Memo tab

4 Select the module for which the posting definition applies

5 Under Match criteria, click Add, and then enter the account number that must be in the originating

entry

6 Optional: If you have multiple match account numbers, in the Priority field, select a number to

indicate the order in which the transactions should be processed Accounts marked 1 are processed first

7 Under Generated entries, click Add, and then enter the account number where the system will

generate a ledger line when a match exists

8 In the Generated debit/credit field, select the way to generate the debit or credit

9 Optional: To link to an existing posting definition, select the definition on the Linked definitions tab

Linked posting definitions must be associated with the same module This tab is visible only if the current posting definition is not linked to another posting definition If it is already linked to another

definition, the Test tab is visible

Procedure: Enable Purchase Order Encumbrances

To enable encumbrances or pre-encumbrances for purchase orders, follow these steps:

1 Open General ledger, click Setup, and then select General ledger parameters

2 Click Ledger, and then click the Accounting rules fast tab

3 Select the Use posting definitions check box Click Yes if you are asked to confirm the selection

4 Select one or both of the following check boxes:

• Select Enable encumbrance process to create encumbrances only

• Select Enable pre-encumbrance process to create both pre- encumbrances and encumbrances

If you select this check box, the Enable encumbrance process check box is automatically

selected

5 Close the General ledger parameters form

Procedure: Viewing Encumbrance Transactions

To view encumbrances for a purchase order, follow these steps:

1 Select Accounts payable, then Common, then, Purchase orders, and then All purchase orders

2 Double-click a purchase order

3 On the Action Pane, click the Purchase tab, and then click Accounting, View subledger journal

Procedure: Run Year-End Encumbrance

Perform the following steps to run a year-end encumbrance:

1 Open General ledger, select Periodic, select Fiscal year close, and then click Purchase order year-end process

2 Click Retrieve purchase orders in the lower pane to select purchase orders for the year-end process

This opens a query form where you can select purchase orders by criteria such as date, date range, vendor account, purchase order type, purchase order balance, or financial dimensions

3 Click OK in the Inquiry form

4 The results of the query are displayed in the lower pane of the Purchase order year-end process

form Select the Include check box for each purchase order to include in the year-end processing

5 Encumbrances for those purchase orders will be reversed in the fiscal year that is ending and the

encumbered amounts will be made available in the new fiscal year You can click Include all to select all of the purchase orders in the list or click Exclude all to clear your selections

6 In the Year-end option field, select how to process purchase order encumbrances

7 Select an original budget code, if you selected the Process and carry forward budget year-end option

This code will be used for budget adjustments that are made in the closing fiscal year The code that you select must not have a workflow selected, because the year- end processing would stop for

workflow approvals

8 Select a carry forward budget code, if you selected the Process and carry forward budget year-end

option This code will be used for budget adjustments that are made in the new fiscal year The code

that you select must not have a workflow selected, because the year- end processing would stop for

workflow approvals

• The Type field is typically set to Operating for a period that can be used to record accounting transactions You can select Closing if you are using a closing period to separate the closing

transactions

• If you selected a type of Closing, select the closing period that you want to use

11 Verify the default values for the Opening parameters fields and make any changes

• The default value for the Accounting date field is the first day of the opening fiscal year

• The default value for the Period field is the first period that has a type of Operating in the opening

fiscal year This type of period is used to record accounting transactions You can select a different period, but it must have a type of Operating

12 Click Process when you are ready to run the purchase order year-end process

13 If any messages are displayed, make the necessary corrections and run the process again for the

affected purchase orders

Additional Notes:

CHAPTER 4: CASH FLOW MANAGEMENT

Procedure: Define Liquidity Accounts

Follow these steps to define the liquidity accounts that capture cash receipts and cash disbursements

1 Click General ledger, Setup, click Posting, and then click Liquidity

2 Click the New button to create a line for a liquidity account

3 In the Main account field, click the arrow to select a ledger account that is one of the company's cash

or cash-equivalent accounts In the Name field, the description of the selected ledger account will

display

Procedure: Set Up Accounts Payable Parameters

Use the Accounts payable parameters as default values on vendor records when you create transactions that affect cash flow Change these values as the actual transaction is recorded

Follow these steps to define accounts payable parameters that are related to cash flow forecasting

1 Click Accounts payable, Setup, and then click Accounts payable parameters

2 Click Ledger and sales tax

3 In the Cash flow forecast area, in the Period between delivery and invoicing field, use the arrow to

select a value that represents the typical time that it takes vendors to send an invoice for goods or services received

During cash flow forecasting, for any orders not yet invoiced, the expected invoice date calculates

6 In the Settle Period field, use the arrow to select the value that represents the expected delay

between the due date and the date of payment

7 In the Settle account field, use the arrow to select the liquidity account that is used most frequently to

make payments to vendors Use this account for settlement unless there is an applicable entry in the

Accounts payable posting profile This field accesses the Chart of accounts table

8 In the Allocation key field, use the arrow to select the value that reduces the effect of the budget in

the cash-flow forecast as purchase orders are created

Procedure: Set Up Accounts Receivable Parameters

The setup in Accounts receivable parameters mirrors the setup in Accounts payable parameters You can use Accounts receivable parameters as default values on customer records when you create

transactions that affect cash flow You can change these values as the actual transaction is recorded Follow these steps to define accounts receivable parameters that are related to cash flow forecasting

1 Click Accounts receivable, Setup, and then click Accounts receivables, parameters

2 Click Ledger and sales tax

3 In the Cash flow forecast area, in the Period between delivery and invoicing field, use the arrow to

select a value that represents the typical time it takes your company to send an invoice to customers after goods or services ship During cash flow forecasting, for sales orders not yet invoiced, the

expected invoice date calculates based on the shipment date of the sales order plus the value in this field

4 In the Invoicing period field, use the arrow to select the value used in calculating the period between

the future date that shipped goods or services are shipped to customers, and the expected invoicing

of the order This value applies to budget lines, open sales orders, and free text invoices

5 In the Terms of payment field, use the arrow to select the most frequently used term of payment that

exists for your customers Use this value for cash flow calculations except when the terms of payment are specified on the sales order, the customer account, or the customer group

6 In the Settle Period field, use the arrow to select the value that represents the predicted delay

between the due date and the date of payment

7 In the Settle account field, use the arrow to select the liquidity account used most frequently to

in the cash-flow forecast as sales orders are created

Procedure: Set Up Posting Profiles

You can select the settlement (liquidity) account for each posting profile in both Accounts Receivable and Accounts Payable Follow these steps to select the settlement account

1 Click Accounts payable or Accounts receivable, Setup, and then select Vendor posting profiles or Customer posting profiles

2 Click the line for the desired profile

3 Click the Setup Fast Tab

4 In the Settle account field, use the arrow to select an account from the Chart of Accounts for

payments to vendors (Accounts Payable) or receipts from customers (Accounts Receivable)

Procedure: Set Up Vendor and Customer Groups

Follow these steps to select the Terms of payment and the Settle period for each customer or vendor

group

3 In the Settle period, use the arrow to select the code that represents the predicted delay between the

due date and the date of cash receipt or payment When an entry is made in this field, it overrides any entry made in the Accounts receivable or Accounts payable parameters for activity that is associated with the customer or vendor group

Procedure: Set Up a Ledger Account

The Cash flow forecast form is used to set up ledger accounts that are used in cash flow forecasts In the

cash flow forecast, future ledger transactions are estimated based on information that is already posted, such as invoices that are not yet paid, expected sales tax payments, and budget transactions

1 Click General ledger, Click Setup, click Chart of accounts, then select Chart of accounts

2 Select the desired Chart of account from the left hand pane

3 On the Main accounts tab, click New

4 Enter a Main account and Name

5 Select Companies in the Select the level of main account to display field

6 Click the Setup Fast Tab, and then click the Cash flow forecast button

7 In the Percent field, enter 100.00

8 Leave the Terms of payment field blank

9 Leave the Posting type field blank

10 In the Main account field, enter the number of the account selected

11 Close the Set up cash flow forecasts form

Procedure: Set Up Dependent Ledger Accounts

In General ledger, you can set up relationships between accounts so that the cash flow forecast for one account is based on the expected activity in another account An example is the calculation of sales tax payments based on the expected transaction amounts for customer accounts

Follow these steps to set up dependent ledger accounts

1 Click General ledger, click Setup, click Chart of accounts, then select Chart of accounts

2 Select the desired Chart of account from the left hand pane

3 On the Main accounts tab, click New

4 Enter a Main account and Name

5 Select Companies in the Select the level of main account to display field

6 Click the Setup Fast Tab, and then click the Cash flow forecast button

7 In the Percent field, enter the percentage to include in the cash flow forecast

8 In the Terms of payment field, use the arrow to select the terms of payment to use in the cash flow

forecast

9 In the Posting type field, use the arrow to select the posting type that is related to the cash flow

forecast

10 In the Main account field, click the arrow to select a ledger account, one of the company's cash or

cash-equivalent accounts, to which the percentage should be recorded

11 Close the Set up cash flow forecasts form

You can add more lines in this form if the account selected in the Chart of Accounts form affects the cash

flow of multiple accounts