Budget Codes provide a number of important functions …
Firstly, they are the key setup that determines which mechanisms you wish to use for creating and maintaining financial budget and forecast values across all of the budgeting module capabilities, including budget planning.
Budget Code definition is also key to the separation of budget register entry creation and maintenance, where separate workflow approval logic and assignment rules are applicable to different creation and maintenance scenarios
Finally, Budget Codes are a key attribute assigned to all budget register entries that enable budget or forecast values held against any selected budget model to be aggregated separately for both budgetary control and financial reporting purposes. For example, they would support the separation of budget register entry values held against a budget model for FY2021 by original budget values, transferred budget values and budget value revisions.
Important: multiple budget codes can be created for any one budget type if required, and this is key when considering separating budget values for financial reporting purposes and for workflow approval scenarios.
Basic Budgeting and Budget Planning
- Original – used in the creation of original, approved budget register entry values
- Transfer – used in the creation of the transfer of existing budget values between cost categories and / or parts of an organisation e.g. department. The application of Budget Transfer Rules are also dependent on budget register entries having a budget code with this budget type assigned.
- Revision – used when updating and revising existing budget model values
- Project – used to enable and support the semi-automated creation of financial budget plan values from selected budget or forecast project budget values stored and maintained separately in the project management and accounting module, by individual project.
- Fixed Assets – used to enable and support the semi-automated creation of financial budget plan (capital, depreciation etc) values from fixed asset module specific fixed asset budget values.
- Demand Forecast – used to enable and support the semi-automated creation of financial budget plan (revenue and cost of goods sold) values from Master Planning, Demand Forecast values.
- Supply Forecast – used to enable and support the semi-automated creation of financial budget plan value from Master Planning, Supply Forecast values.
All of the following Budget Types are specific to Dynamics 365 Public Sector functionality, primarily Budget Control capabilities and should only be considered by Public Sector organisations
- Encumbrance – used to support the semi-automated creation and maintenance of encumbrance (commitment) values from procurement and sourcing.
- Pre-encumbrance – used to support the creation and maintenance of pre-encumbrance (pre-commitment) values. This capability is specific to Dynamics 365 Public Sector functionality.
- Carry-forward – enables any budget values that remain unused at a financial year end to be automatically carried forward (by the General Ledger, Purchase order year-end process) and made available in the following financial year. This capability is specific to Dynamics 365 Public Sector functionality.
- Apportionments – are used to determine the proportion of the “original” budget value that has been approved for spending and is primarily setup for budgetary control purposes. This capability is specific to Dynamics 365 Public Sector functionality.
- Preliminary budget – used to create a temporary, preliminary budget while the actual budget is being reviewed and approved and is primarily setup for budgetary control purposes. This capability is specific to Dynamics 365
Further information on defining Budget Models and Basic Budgeting Configuration is available via the following URL’s