Authorizing budget details

This page allows you to modify the budget details of the selected budget. Tell me more

Select the “Authorize Budget Details” link at the bottom of the “Authorize Budget Header” page.

The “Authorize Budget Details” page appears.

The system displays the following:

Budget No.	The number identifying the budget.
Version No.	The number identifying the budget version.
Status	The status of the budget. It must be “Fresh”.
Desc.	The description of the budget.
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Aggregate / Period	Indicates whether the budget is a comprehensive budget or a period budget. It could be “Aggregate” or “Period”.
	Aggregate – indicates that the budget is a comprehensive budget defined for a date range. This aggregate budget can be split among the MAC periods that are present in the effective date range as per specific seasonality patterns.
	Period – indicates that the budget is defined for MAC periods that are covered in the date range during which the budget is effective. If the parameter “Control Totals for Budgets” has been set as “Yes”, an authorized aggregate budget must be available earlier for a period budget to be created.
Definition Type	Indicates the entity for which the budget has been defined. It could be “Cost Center, “Cost Center - Cost Element”, “Cost Center - Product” or “Cost Element – Product”.
	Cost Center – indicates that the budget is being defined for a detail cost center.
	Cost Center – Cost Element – indicates that the budgeted amounts and quantities can be specified at the cost element level for the individual cost centers. This type of budget is used in analysis, comparison and reporting purposes.
	Cost Center – Product – indicates that budget amounts and values for items and item variants can be specified for consumption or product output from a cost center for an accounting period. This type of budget is used to generate material variance reports for cost centers.
	Cost Element – Product – indicates that the output / product budget quantities can be specified for cost elements that have been incurred to produce manufactured items for an accounting period. Quantity and value budgets can be specified. This type of budget is used to generate standard item costs based on the budgeted output of items and their respective input costs.
Budget Type	Indicates the type of the budget. It could be “Quantity”, “Value” or “Both”.
Budget OU	The organization unit for which the budget is being defined.
Item Org. Unit	The organization unit in which the item has been created.
Effective Date	The date from which the budget is effective.
Expiry Date	The date till which the budget is effective.
Default Status	Indicates whether the budget is a default budget.

Modify the following fields if required in the “Budget Details” multiline:

Cost Center / Unit

The code identifying the cost center / unit (Alphanumeric, 10). The cost center entered in this field must be a valid cost center that has been defined in the “Cost Setup” business component and is in the “Active” status. At least one cost center must be entered in the “Budget Details” multiline if the “Definition Type” has been selected as “Cost Center”, “Cost Center – Cost Element” or “Cost Center – Product”.

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Note: This field must be left blank if the “Definition Type” is selected as “Cost Element – Product”.

Cost Element

The code identifying the cost element (Alphanumeric, 32). The cost element entered in this field must be a valid cost element that has been defined in the “Cost Setup” business component and is in the “Active” status. At least one cost element must be entered in the “Budget Details” multiline if the “Definition Type” has been selected “Cost Center – Cost Element” or “Cost Element –Product”.

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Note: This field must be left blank if the “Definition Type” is selected as “Cost Center” or “Cost Center – Product”.

Item Code

The code identifying the item (Alphanumeric, 32). The item code entered in this field must be a valid item code that has been defined in the “Item Administration” business component and is in the “Active” status. At least one item must be entered in the “Budget Details” multiline if the “Definition Type” has been selected as “Cost Element –Product” or “Cost Center – Product”.

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Note: This field must be left blank if the “Definition Type” is selected as “Cost Center” or “- Cost Center - Cost Element”.

Item Variant

The code identifying the item variant corresponding to the item code entered in the “Item Code” field (Alphanumeric, 36). At least one item must be entered in the “Budget Details” multiline if the “Definition Type” has been selected as “Cost Element –Product” or “Cost Center – Product”.

Note: This field must be left blank if the “Definition Type” is selected as “Cost Center” or “- Cost Center - Cost Element”.

The system displays the following in the “Budget Details” multiline:

Budget Span

The date range covered by the budget. The system displays the effective date and the expiry date of an aggregate budget.

Modify the following fields if required in the “Budget Details” multiline:

Accounting Period	Use the drop-down list box to select the accounting period for which you want to define the budget. All the MAC periods that fall within the specified date range will be available for selection in the chronological order. The system displays the start date and the end date of the MAC period.
Qty.	The number of units (Integer).

Note: This field must be left blank if “Value” has been selected as “Budget Type”.

Forecast Amount	The forecast amount of the budget.
Amount	The budget amount (Decimal).

Note: This field must be left blank if “Quantity” has been selected as “Budget Type”.

Variable Rate / % for Flex Budgeting

The flat rate or the percentage of variability of the amounts specified for a cost element used in defining flexible budgets (Integer). The value entered in this field must be greater than zero. If “Variability for Flexible Budgets” has been set as “Percentage” in the “Set Parameters” activity, the value entered in this field must be less than 100.

Note: This field must be left blank if “Provide Flexible Budgeting” has been set to “No” in the “Set Parameters” activity. This field must be entered only if “Provide Flexible Budgeting” has been set to “Yes” in the “Set Parameters” activity, “Definition Type” is selected as “Cost Center – Cost Element” and the “Budget Type” is selected as “Both”.

Variable Proportion for CE – Product

The proportion of the variability of the input costs of cost elements specified in the budget defined for the “Cost Element – Product” (Decimal). The value entered in this field must be less than “1”.

Note: This field must be entered only if “Definition Type” has been selected as “Cost Element – Product”.

Check the box in the “Select” column of the multiline to mark a cost center or cost element or item for deletion.

Click the “Authorize” pushbutton to authorize the budget.

The system saves the modifications made to the budget details. The system stores the budget details in the base currency and the parallel base currencies (if applicable) of all the companies that have been mapped to the business units and the organization units for which the budget has been created. The system updates the status of the budget as “Active”. The system also stores the login ID of the user and the system date along with the modified budget details.

Note: You cannot make the budget as a default budget if the “Define Default Budgets” has been set as “No” in the “Set Parameters” activity. You can make a “Cost Center – Cost Element” period budget of the type “Both”, as a default budget only if it is in the “Active” status.

Click the “Make as Default” pushbutton to make the budget as a default budget.

The system marks the budget as the default budget.

The system displays the following:

Created By	The login ID of the user who created the budget.
Created Date	The date on which the budget was created.
Last Modified By	The login ID of the user who last modified the budget.
Last Modified Date	The date on which the budget was last modified.

To proceed, carry out the following

Select the “Attach Notes” link at the bottom of the page to record your observations.
Select the “Collaborate” link at the bottom of the page to record or to view the observations or comments or discussions regarding the document.

Authorizing budget details – An overview

You can modify the list of cost centers, cost elements or items that form a part of the budget. You can also modify the budget quantity and value. If “Flexible Budgeting” has been opted for you can also modify the rate or the percentage of variance that can be accepted for the budget.

The system stores the modified budget details in the base currency and the parallel base currency (if applicable) of the companies that have been defined for the business unit in which the budget is being created. The system also stores the login ID of the user and the system date along with the modified budget details.

This page also allows you to authorize the budget. The system updates the status of the budget as “Active”. The system also stores the login ID of the user and the system date along with the modified budget details. This page also allows you to set the authorized budget as the default budget for the accounting period. You can set only one budget as the default budget for a period.