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:

Budget Name	Approval Amount	Approvers
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.

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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.

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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.

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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.

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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.

Only the Budget approvers may make order updates during the Budget Approval process.

Learn more about Budgets:

How do I add a Budget?How do I update a Budget?How do I delete a Budget?