Purchase Requisition Configuration: Setup of Budget Validation for Employee Requests

If your company uses purchase requests, you can set up budget validation of purchase requests. This validation helps your company prevent cost overruns of requested goods and services. Before you set up this validation, you should make sure that the budgets have been created and released on the Budgets (GL302010) form.

The setup of budget validation for purchase requests includes the following tasks:

1. Defining the way the system will calculate the costs of items included in a purchase request: On the Purchase Requisitions Preferences (RQ101000) form, in the Budget Ledger box of the General tab, you select the budget ledger that the system will use for verification. In the Budget Calculation box, you can also specify one of the following options:
   • YTD Values: Calculates the total cost of purchase requests created from the beginning of the financial year to the end of the current financial period
   • PTD Values: Calculates the total cost of purchase requests created from the beginning of the financial period
   • Annual: Calculates the total cost of purchase requests created for the current calendar year
2. Turning on budget validation in the settings of each needed purchase request class: On the Request Classes (RQ201000) form, you turn on budget validation by selecting one of the following options in the Budget Validation box of the GL Accounts tab:
   • None (default): No budget validation will be performed. This option might be selected for a customer request class, because internal budget validation is not applicable for these requests.
   • Warning: A user will be able to save a purchase request of this class even if the requested amount exceeds the budgeted amount. In this case, the system will display a warning.
   • Error: A user will not be able to save a purchase request of this class with an amount that exceeds the budgeted amount, and the system will display an error message.