AX2012 ENUS FINII 01

Chapter 1: Budgeting CHAPTER 1: BUDGETING Objectives The objectives are: • Review the concepts of budgeting • Set up basic budgeting • Discuss the uses of budget control • Define rules and specify attributes for budget control Introduction Every business entity, whether it is private or public, sets some financial and operational goals by creating budgets When the budget is established, the management or responsible person monitors the activities within the budget framework In Microsoft Dynamics® AX 2012, the Budget module is redesigned to emphasize new methods for entering budget amounts and introducing budgetary controls Workflows are also introduced for Budget register entries For example, if an approval is required for transferring a budget amount from one department to another, then workflow functionality helps to create an approval workflow Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-1 Financials II in Microsoft Dynamics® AX 2012 Budgeting Overview The Budgeting module in Microsoft Dynamics AX allows you to set up, create, and view budgets Budgeting can include budget control, which you can use to monitor the budget funds that are available for planned and actual purchases and expenditures You can create budget register entries for the original budget, budget transfers, and budget revisions In addition, you can also create budget register entries for encumbrances and pre-encumbrances for purchases and planned expenditures Budget register entries can be created automatically when budgets are transferred to the general ledger from other modules such as Project management and accounting or Fixed assets With the Budgeting module, you can determine which financial dimensions from the chart of accounts will be available for basic budgeting and budget control When you configure budget control, you can define the following: • Budget intervals • Budget cycle time spans • Budget thresholds • Budget managers • Budget groups • Calculation that is used to check for available budget funds The available budget funds can be verified when source documents and accounting journals are entered The Budgeting module allow you to view the status and history of the following: 1-2 • Budget register entries • Budget control statistics • Actual versus budget amounts • Budget details, • Available budget funds Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting The following figure illustrates the business process for budgeting FIGURE 1.1 BUDGETING BUSINESS PROCESS Budgeting Configuration Budgeting includes three primary configuration keys • Budget configuration key: enables basic budgeting • Budget control configuration key: adds budget control to basic budgeting • Public Sector configuration key: adds two budget types to basic budgeting that are used by public sector organizations Other configuration keys might implement additional budgeting features and features that are related to budgeting requirements in specific countries/regions Basic budgeting includes financial dimensions that are defined for Budgeting, budget register entries, and Budgeting workflows Budget control is used together with basic budgeting Budget control includes budget types for pre-encumbrances and encumbrances, budget checking for source documents and accounting journals, and features such as financial dimensions that are defined for budget control, over budget permissions for user groups, and the budget funds available calculation The public sector configuration includes the Preliminary budget and Apportionments budget types Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-3 Financials II in Microsoft Dynamics® AX 2012 To use budget control, you must set up basic budgeting If you are using the public sector configuration, you set it up at the same time as you set up basic budgeting The following sections describe the information that you should compile before you set up basic budgeting and budget control These sections also list information that you can view for additional details Planning for Basic Budgeting When using basic budgeting in Microsoft Dynamics AX you will need to compile some information about how the budgets should be configured before you begin the configuration The following list includes the information that you should compile before you begin configuring basic budgeting or budget control • Financial dimensions and main accounts that will be used for Budgeting, and that can have amounts transferred either to or from them • Currency exchange rates that must be defined, and what those exchange rates are • Budget codes that must be set up for each budget type, and which code is the default budget code • Budget register entries that will use workflows You assign workflows to budget codes The budget register entries that are associated with a budget code that has an assigned workflow are automatically submitted to workflow • The names of each budget model • How the budget cycles will be set up • Amounts that will be allocated across periods or to other financial dimension values • Financial dimensions that will have recurring amounts • Budget models that will be used in cash flow forecasts Planning for Budget Control If you use budget control, compile the following information in addition to the information in the Planning for Basic Budgeting topic 1-4 • Financial dimensions that should be included in budget control rules • User groups that can post entries that exceed the remaining balance for a budget • Source documents and accounting journals that should be enabled for budget checking Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting • • • Financial dimensions and accounts that must have a budget threshold, and what that threshold is A budget threshold is the level of budget usage at which you can prevent posting or display warnings For example, if the threshold is 80, you can warn a user during entry that 80 percent of the budget for the selected account has been used The formula for calculating the remaining balance of a budget The budget funds available calculation can be defined for each legal entity instead of always using the following calculation: Original budget - Actual expenses The interval, such as monthly, quarterly, or yearly, that is used to determine whether the available budget balance is sufficient to cover transactions Budgeting Methodologies Several methodologies are available for defining budgets in your organization Two of these methods are described in the following topics: zero-based budgeting, and historical budgeting Zero-Based Budgeting Zero-based budgeting is a method of planning and decision-making that reverses the working process of traditional budgeting In traditional incremental budgeting, departmental managers justify only increases over the previous year's budget and what have already been spent is automatically sanctioned In zero-based budgeting, every department function is reviewed comprehensively and all expenditures must be approved, rather than only increases No reference is made to the previous level of expenditure Zero-based budgeting requires the budget request be justified in complete detail by each division manager starting from the zero-base The zero-base is indifferent to whether the total budget is increasing or decreasing Some advantages to using zero-based budgeting include: • Efficient allocation of resources, because it is based on needs and benefits • Drives managers to find cost effective ways to improve operations • Helps to detect inflated budgets • Identifies and helps you eliminate wasteful and obsolete operations • Identifies opportunities for outsourcing • Forces cost centers to identify their mission and their relationship to overall goals • It helps in identifying areas of wasteful expenditure and, if desired, it can also be used for suggesting alternative courses of action Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-5 Financials II in Microsoft Dynamics® AX 2012 Historical Budgeting Historical budgeting, sometimes referred to as incremental budgeting, uses a budget that is prepared by using a previous period’s budget or actual performance as a base, with incremental amounts added for the new budget period The allocation of resources is based upon allocations from the previous period This approach is not recommended because it fails to take into account changing circumstances Moreover, it encourages “spending up to the budget” to ensure a reasonable allocation in the next period It leads to a “spend it or lose it” mentality Some advantages of historical budgeting include: • The budget is stable and change is gradual • Managers can operate their departments on a consistent basis • The system is relatively simple to operate and easy to understand • Conflicts are avoided when departments appear to be treated similarly • Co-ordination between budgets is more efficient to achieve • The impact of change can be seen quickly Using and Updating Budget Register Entries The budget data is entered through the Budget register entry form which consists of a header and lines The header information is applied to the whole budget register entry and the lines (account entries) are where budget amounts for specific dimension combinations are entered You can use budget register entries to the following: • Create budget amounts • Transfer budget amounts • Allocate budget amounts across periods or dimensions • Create recurring budget register entries • Revising budget register entries NOTE: For more information about using and managing budgets, refer to the Using and Managing Budgets chapter in this course 1-6 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting Basic Budgeting Setup You can use basic budgeting to define the financial dimensions for budgets, create budget models, and set up and use budget register entries You can also set up optional Budgeting workflows to automate the review of budget register entries, including budget transfers NOTE: This topic includes information about financial budgets For more information about budgets for projects, refer to the help Before you use basic budgeting, complete the steps that are described in the following topics If you are using budget control, you must set up basic budgeting before you configure budget control • Required: Define budget exchange rates • Required: Define budgeting parameters and number sequences • Required: Define financial dimensions for Budgeting • Required: Create budget models • Required: Define budget codes • Optional: Define budget transfer rules • Optional: Set up budgeting workflows • Optional: Set up budget allocation terms Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-7 Financials II in Microsoft Dynamics® AX 2012 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 Open General ledger > Setup > Currency > Exchange rate types Select the Budget exchange rate type and then click Exchange rates to open the Currency exchange rates form FIGURE 1.2 CURRENCY EXCHANGE RATES FORM Click New and select values in the From currency and To currency fields Enter the exchange rate For example, type 130 to represent 130 U.S dollars (USD) for 100 euros (EUR) 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 subledger budget transfers You can also select the budget journal for budget appropriations and set up number sequences for budgeting Open Budgeting > Setup > Budgeting parameters 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 Select the Use rules for budget transfers check box to enable budget transfers 1-8 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting 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 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 Select a budget journal to use for budget appropriations, if Enable budget appropriation is selected 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 Click the Number sequences tab a Select a number sequence code for the Budget register entries reference b 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 Budgeting, which could provide more flexibility For example, the account structure for the chart of accounts might have Department, Cost center, and main account financial dimensions If you select the Department and Cost center financial dimensions for Budgeting, the departments and cost centers can hold budget amounts without regard to which main account is used Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-9 Financials II in Microsoft Dynamics® AX 2012 Open Budgeting > Setup > Dimensions for budgeting FIGURE 1.3 BUDGETING DIMENSIONS Select the financial dimensions in the Chart of accounts dimension list 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 submodels, which you attach to the budget model on the Submodel FastTab For example, you could create a budget that has submodels that represent the various departments of the legal entity NOTE: Budget models that are used as submodels cannot contain other submodels Also, if you use budget control, you cannot use budget models that have submodels 1-10 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Financials II in Microsoft Dynamics® AX 2012 1-26 Field Description Unposted actual expenditures Includes actual expenditures that are not yet recorded in the general ledger from expense reports, vendor invoices, and accounting journals The amounts from the source documents or accounting journals are included in the budget check only when the source document or accounting journal is enabled for budget control Budget reservations for encumbrances Includes budget reservations that are created for Confirmed purchase orders or travel requests in addition to budget register entries that are in a status of Completed that use the transaction type of Encumbrance Budget reservations for unconfirmed encumbrances Includes budget reservations that are created for unconfirmed purchase orders or travel requests in addition to budget register entries that are in a status of Draft that use the transaction type of Encumbrance NOTE: If you not select this check box, budget checks can still be performed on draft source documents, such as purchase orders and travel requests However, the amount of the budget reservation is not included in the budget check for subsequent source documents You can this to perform a budget check on draft documents without creating a committed reservation Reductions to budget reservations for unconfirmed encumbrances Shows the amounts of the unconfirmed obligations that customers must pay Since a correction to a purchase order can be reverted, this option is intended to prevent a reduction in a budget reservation amount because of a correction to a purchase order until the correction is confirmed Budget reservations for preencumbrances Includes budget reservations that are created for Approved or Confirmed purchase requisitions in addition to budget register entries that are in a status of completed with the transaction type of Pre-encumbrance Budget reservations for unconfirmed preencumbrances Budget reservations that are created for unconfirmed and unapproved purchase requisitions, and budget register entries that have a status of Draft and use the Preencumbrance budget type These manual budget reservations are created through budget register entries but are not included in the overall budget balance NOTE: If you not select this check box, budget checks can still be performed on draft purchase requisitions However, the amount of the budget reservation is not included in the budget check for subsequent source documents You can this to perform a budget check on draft documents without creating a committed reservation Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting Selecting Source Documents for Budget Control In the Select source documents tab on the Budget control configuration form, you can select check boxes to determine the source documents that are subject to budget control You can also select check boxes to enable budget checks as the lines for source documents are entered and saved You should match the source documents that you select with the check boxes that you selected for the budget funds available calculation in the Budget funds available area For example, if you selected Budget reservations for encumbrances to be included in the budget funds available calculation, you might want to select the Purchase orders check box When a budget check is performed for the amounts and accounts on a purchase line, the budget control category that is assigned to the reservation is Encumbrance NOTE: A budget check is performed when a source document is created To check the budget when it gets save or edited the appropriate option must be selected on the Source document tab A budget check is performed when a source document is submitted to workflow and when it is approved and confirmed NOTE: If purchase requisitions are enabled for budget control all documents downstream (purchase orders and vendor invoices) are also enabled to make sure that the budget reservations are relieved appropriately throughout the “procure to pay” cycle Additionally, if purchase orders are enabled for budget control, Vendor invoices are enabled by default for the same reasons Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-27 Financials II in Microsoft Dynamics® AX 2012 Procedure: Select Source Documents for Budget Control To select source documents for budget control, follow theses steps Open Budgeting > Setup > Budget control configuration Click Select source documents FIGURE 1.9 BUDGET CONTROL CONFIGURATION FORM - SELECT SOURCE DOCUMENTS TAB Select the Purchase requisitions check box The Purchase orders and Vendor invoices check boxes are automatically selected If you not select the Purchase requisitions check box and you instead select the Purchase orders check box, the Vendor invoices check box is automatically selected 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 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 linelevel checking is not enabled 1-28 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting 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 Open Budgeting > Setup > Budget control configuration Click Select accounting journals FIGURE 1.10 BUDGET CONTROL CONFIGURATION FORM - SELECT ACCOUNTING JOURNALS TAB Select any of the following check boxes to enable budget control for accounting journals: a Daily journals b Allocation journals c Project expense journals d Fixed asset journals Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-29 Financials II in Microsoft Dynamics® AX 2012 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 About Budget Cycles A budget cycle time span defines the length of a budget cycle Budget cycles are associated with the periods in a fiscal calendar and can be shared across legal entities Budget cycles determine the starting and ending periods for budget control You can map a budget cycle time span to a fiscal year, or you can specify the number of periods for part of a fiscal year or to span fiscal years You can assign a budget model to a budget cycle to perform budget checking for the budget cycle Only one budget model can be in use for a budget cycle A budget check is performed when the accounting date for a source document or accounting journal that is enabled for budge control is in the budget cycle NOTE: The budget cycle must be defined before you associate the budget cycle with a budget model In the Assign budget models area, you can click the Budget models link to open the Budget model form, and you can click the Budget cycle time spans link to open the Budget cycle time spans form Procedure: Create a Budget Cycle Use the Budget cycle time spans form to specify the fiscal year or the number of periods for the budget cycles that are associated with the budget cycle time span Budget cycle time spans are associated with fiscal calendars to determine the length of each budget cycle Like fiscal calendars, budget cycles can be shared across legal entities NOTE: When you configure budget control, you assign a budget model to budget cycles This determines the budget amounts for budget control and is specific to the ledger for the legal entity for which you are configuring budget control 1-30 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting To create a new budget cycle time span, follow these steps: Open Budgeting > Setup > Budget cycles FIGURE 1.11 BUDGET CYCLE TIME SPANS FORM Click New and enter a name for the budget cycle time span Select a fiscal calendar to associate with the budget cycle time span In the Length of budget cycle field, select Specify number of periods or Map to fiscal year a If you select Specify number of periods, enter the number of accounting periods for the budget cycle b 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 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: Open Budgeting > Setup > Budget control configuration Click the Assign budget models tab Click Add and then select a budget cycle time span Select a Budget cycle Select a Budget model Only budget models that not contain submodels 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 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-31 Financials II in Microsoft Dynamics® AX 2012 Budget Control Rules Budget control rules are required for budget control They determine the financial dimension value combinations for budget control If you selected the department and cost center financial dimensions for budget control, you can define rules for specific combinations of departments and cost centers that are subject to budget control For example, you could specify Department = Sales and Cost Center = *, where the asterisk (*) is a wildcard character that will include any cost center NOTE: Criteria in two or more rules that cover the same financial dimension values are not allowed If all financial dimension value combinations will be enabled for budget control, you can define a budget control rule without criteria The budget control rules are validated against the ledger accounts that are being used on source document accounting distributions and accounting journals If the financial dimensions in the ledger accounts match the financial dimensions in the budget control rules, a budget check occurs Budget Control Rules Example This example defines budget control rules to establish a different budget threshold for one department The default budget control parameter values that you entered in the Define parameters tab are used unless you specify a different budget cycle time span, budget interval, budget threshold, or budget manager for individual rules For example, to assign a different budget threshold to only one department, you could define two budget control rules: one for the specific department and its budget threshold, and another for all of the other departments for their threshold 1-32 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting Open Budgeting > Setup > Budget control configuration Click Define budget control rules FIGURE 1.12 BUDGET CONTROL CONFIGURATION FORM - DEFINE BUDGET CONTROL RULES TAB Define a rule where Department 010 has a budget threshold of 90 a Click New to create a rule, and then enter a rule name and description On the Criteria FastTab, click Add filter b In the Where list, select the Department financial dimension c In the Operator list, select is, and then enter 010 as the department number d In the Budget threshold field, enter 90 Define a second rule where all other departments have a budget threshold of 100 a Click New to create another rule, and then enter a rule name and description On the Criteria FastTab, click Add filter b In the Where list, select the Department financial dimension c In the Operator list, select is greater than and includes and enter 020, which will include all departments except Department 010 d In the Budget threshold field, enter 100 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-33 Financials II in Microsoft Dynamics® AX 2012 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 Only main account types of Total, Profit and loss, and Expense can be selected, because these are the accounts that typically are used for actual expenditures Accounts that have a Total type are included because you can enter budget amounts in main accounts that have a Total type Open Budgeting > Setup > Budget control configuration Click Select main accounts Select the check boxes to select the main accounts or click Select all to select all the main accounts You can also click Select to define a query to filter the list of main accounts Budget Groups In the Define budget groups tab of the Budget control configuration form, you can define optional budget groups to form a budget pool, or a collection of financial dimension values whose budgets will be pooled for a secondary budget check The financial dimension combinations that are found in the budget control rule are always checked for budget amounts If a financial dimension combination is also found in a budget group, a second budget check is performed at the budget group level For example, if there is a budget control rule for all combinations of the department and cost center financial dimensions, you could also define a budget group for Department 010, which would include all the cost centers in that department This budget group would pool the budget of all the cost centers for Department 010 If an initial budget check failed for a cost center in Department 010, a second budget check would be performed on the aggregate budget for all cost centers in Department 010 NOTE: Multiple criteria can be specified for a budget group All the criteria are used to determine the financial dimension combinations for the budget group No overlapping criteria are allowed across budget groups and budget group members 1-34 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting Procedure: Define Budget Groups To define budget groups, follow these steps: Open Budgeting > Setup > Budget control configuration Click Define budget groups The ledger name is displayed at the top of the hierarchy Click Add to create a budget group member Enter a budget group name and description When you add a group member, you can add filter criteria, change user group permissions, and modify the default budget control properties On the Criteria FastTab, click Add filter For this example, in the Where list, you would select the Department financial dimension 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 Open Budgeting > Setup > Budget control configuration Click the Define message levels tab 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 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-35 Financials II in Microsoft Dynamics® AX 2012 Procedure: Activate Budget Control and Configurations When you are finished making changes or setting up the budget control configuration, you must activate it In addition, budget control must be enabled so you can start using the settings Use the Activate budget control tab to activate the configuration or to start or stop using budget control NOTE: When the budget control configuration is active, the Edit button must be used to make modifications The active budget control configuration continues to be used until the draft version is activated IMPORTANT: If you turn off budget control, source documents and accounting journals that have a status of Draft are removed from the budget control tracking system No additional budget checks are performed If you turn on budget control again, you might have to manually adjust the budget to correct reserved budget amounts To activate and enable budget control, follow these steps: Open Budgeting > Setup > Budget control configuration Click Activate budget control Click Activate to make the draft version of the budget control configuration active The Date when last activated field displays the current date, and the Activated by field displays your user ID Click Turn on to start budget control by using the active configuration The budget control status changes to Turned on, and the Turn on button is replaced with Turn off Summary Microsoft Dynamics AX has budgetary control feature including two levels of budgetary controls, basic budgeting and budgetary control With budgetary control you can configure rules that will prevent budget overruns or provide warnings when budget thresholds are met You can also perform budget checks on source documents and accounting journals that have been enabled in the budget control configuration 1-36 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting Test Your Knowledge Test your knowledge with the following questions Budget control rules can be defined for which of the following? ( ) One dimension value ( ) Any combination of budget dimension values ( ) All dimension values for a specified dimension Match the terms on the left with their definitions on the right side: _ Budget checking rules _ Allocation terms _ Period allocation keys _ Budget cycle time spans _ Budget threshold a Lets you define allocations by percent to specific periods b Determines the length of a given budget c Used to define which source documents should validate against the budget control configuration d Used to provide warning messages to user or to define limits for users to prevent them from exceeding the budget e Used to define a pre-determined allocation to dimension values by percentage True ore False The main account must be included as one of the dimensions on the budget control configuration ( ) True ( ) False Which of the following business documents can have budget control enabled? (Select all that apply) ( ) Purchase requisitions ( ) Request for quotes ( ) Purchase orders ( ) Vendor invoices Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-37 Financials II in Microsoft Dynamics® AX 2012 Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1-38 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement Chapter 1: Budgeting Solutions Test Your Knowledge Budget control rules can be defined for which of the following? ( ) One dimension value (•) Any combination of budget dimension values ( ) All dimension values for a specified dimension Match the terms on the left with their definitions on the right side: c Budget checking rules e Allocation terms a Period allocation keys b Budget cycle time spans d Budget threshold a Lets you define allocations by percent to specific periods b Determines the length of a given budget c Used to define which source documents should validate against the budget control configuration d Used to provide warning messages to user or to define limits for users to prevent them from exceeding the budget e Used to define a pre-determined allocation to dimension values by percentage True ore False The main account must be included as one of the dimensions on the budget control configuration ( ) True (•) False Which of the following business documents can have budget control enabled? (Select all that apply) (√) Purchase requisitions ( ) Request for quotes (√) Purchase orders (√) Vendor invoices Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement 1-39 Financials II in Microsoft Dynamics® AX 2012 1-40 Microsoft Official Training Materials for Microsoft Dynamics® Your use of this content is subject to your current services agreement ... account entry date Budget register entry number Budget Type Amount January BUD_0 001 Original budget 1,000.00 February BUD_0 001 Original Budget 1,500.00 Budget Balances for Sales department - East region:... account entry date Budget register entry number Budget Type Amount January BUD_0 001 Original budget 10,000.00 March BUD_0 001 Original Budget 15,000.00 Microsoft Official Training Materials for Microsoft... account entry date Budget register entry number Budget Type Amount January BUD_0 001 Original budget 10,000.00 March BUD_0 001 Original Budget 15,000.00 January BUD_0002 Transfer -1,000.00 Scenario: