Budgets
Accounts can use Budgets to set financial privileges and give Users flexibility to make decisions that are appropriate to their role. A Director position may have a higher Budget threshold to initiate larger purchases than a Support position. Budget approval is required if a purchase exceeds the User's assigned Budget. Budgets help provide accountability for everyone.
For example, we have the following Budgets:
Basic
$100
User B, User C
Advance
$1000
User C, User D
Scenario 1: User A is assigned to the Basic Budget with an approval amount of $100 and submits a Purchase Order of $90.
Approval is not required since $90 is less than the Basic Budget's approval amount of $100. The Purchase Order is automatically approved to proceed.
Scenario 2: User A is assigned to the Basic Budget with an approval amount of $100 and submits a Purchase Order of $900.
Approval is required from the Basic Budget since $900 exceeds its approval amount of $100. User B or User C can approve the Basic Budget. If denied, User A can make updates and try again. If approved, the Purchase Order proceeds.
Scenario 3: User B is assigned to the Advance Budget with an approval amount of $1000 and submits a Purchase Order of $900.
Approval is not required since $900 is less than Advance Budget's approval amount of $1000. The Purchase Order is automatically approved to proceed.
Scenario 4: User B is assigned to the Advance Budget with an approval amount of $1000 and submits a Purchase Order of $2000.
Approval is required from the Advance Budget since $2000 exceeds its approval amount of $1000. User C or User D can approve the Advance Budget. If denied, User B can make updates and try again. If approved, the Purchase Order proceeds.
Scenario 5: User A is assigned to the Basic Budget with an approval amount of $100 and submits a Purchase Order of $2000.
Approval from the Basic and Advance Budgets is required since $2000 exceeds both Budgets' approval amounts. User B or User C can approve the Basic Budget. If denied, User A can make updates and try again. If approved, User C or User D will provide approval for the Advance Budget. If denied, User A can make updates and start the entire approval process again. If approved, the Purchase order proceeds.
Learn more about Budgets:
How do I add a Budget?How do I update a Budget?How do I delete a Budget?Last updated
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