Purchase Requisition Configuration: To Set Up Budget Validation for Employee Requests

In the following implementation activity, you will configure budget validation for purchase requests of an employee request class.

Story

Suppose that the SweetLife Fruits & Jams company needs computers and computer accessories for its employees. The company has a budget limitation of $1500 per month for computers and accessories.

Acting as purchasing manager Matt Parker, you need to create an employee request class and include a limited number of stock items in the class. Also, you need to set up budget validation for the requests of the class. You will then create an employee purchase request of the class and validate it against the budget.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

• On the Enable/Disable Features (CS100000) form, the Purchase Requisitions feature has been enabled.
• On the Budgets (GL302010) form, the budget has been created and released.
• On the Purchase Requisitions Preferences (RQ101000) form, the required settings, budget ledger, and budget calculation settings have been specified.
• On the Employees (EP203000) form, the Matt Parker employee has been created and associated with the parker user account.

Process Overview

In this activity, you will do the following:

1. On the Request Classes (RQ201000) form, create an employee purchase request class.
2. On the Requests (RQ301000) form, create an employee purchase request of the class.

System Preparation

Before you start creating an employee purchase request class, you should launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You sign in as purchasing manager Matt Parker by using the parker username and the 123 password.

Step 1: Creating the Employee Purchase Request Class

To create the employee purchase request class for the requests for computers and accessories, do the following:

1. On the Request Classes (RQ201000) form, add a new record.
2. In the Summary area, specify the following settings:
   1. Request Class: INTCOMP
   2. Description: Employee requests for computers and accessories
   3. Promised Lead Time (Days): 3
   4. Customer Request: Cleared

      You leave this check box cleared because you are creating an employee request class.

   5. Allow Multiple Vendors per Request: Selected
   6. Restrict Requested Items to the Specified List: Selected
3. On the Item List tab, add rows for items with the following inventory IDs:
   • LAPTOP15
   • MONITOR24
   • KEYBOARD
4. On the form toolbar, click Save.

Step 2: Configuring Budget Validation for the Request Class

To configure budget validation for the employee purchase request class, do the following:

1. While you are still viewing the INTCOMP purchase request class on the Request Classes (RQ201000) form, on the GL Accounts tab, specify the following settings:
   1. Budget Validation: Warning
   2. Use Expense Account From: Request Class
   3. Expense Account: 60000 - Purchase Expense
2. On the form toolbar, click Save.

Step 3: Creating a Purchase Request and Validating It Against the Budget

To create an employee purchase request of the INTCOMP class, do the following:

1. On the Requests (RQ301000) form, add a new record.
2. In the Summary area, specify the following settings:
   1. Request Class: INTCOMP

      Notice that when you select this class, the Requested By box is filled in with EP0000056 - Matt Parker, the employee ID associated with the parker user account. Because an employee request class was selected, the company's employees are available for selection in the Requested By box, and if the signed-in user is associated with an employee account, the employee ID is selected by default.

   2. Description: Request for a laptop and a monitor
3. On the Details tab, do the following:
   1. On the table toolbar, click Add Row.
   2. Specify the following settings in the added row:
      • Inventory ID: LAPTOP15.

        Notice that only three stock items are available for selection in the lookup table because only these items are listed on the Request Classes (RQ201000) form for the INTCOMP request class.

      • Order Qty.: 1.
   3. On the table toolbar, click Add Row.
   4. Specify the following settings in the added row:
      • Inventory ID: MONITOR24
      • Order Qty.: 1
   5. On the form toolbar, click Save.

      On the Budget tab, notice that a warning has appeared next to the tab's title and in the Budget Amount box. This means that the total amount of the request has exceeded the budget in the current month. A user can save a request with this warning, but according to the company's business processes, the request may not be fulfilled.

You have configured budget validation for purchase requests of the class.