1. Budgeting in Microsoft Dynamics AX BY: BRAD GEHRLS AND RYAN SEITZ

2. Budgeting Control Configuration  In order to set up Budget Control Configuration we need to define which dimensions will be available to be used with budgeting. You can do this by clicking Budgeting | Setup | Basic Budgeting | Dimension for Budgeting.  The list in here will have all of your chart of account dimensions and you can select which dimensions you want to use for budgeting.  The most common dimensions selected are Main Account, Department, and Cost Center

3. Budget Control Configuration  The budget control configuration allows for an active version and a draft version which provided additional flexibility to change the configuration. Upon initial setup, no active configurations exist.  When configuring Budget Control, the following steps are required:  Define Budget Control Parameters  Define Over Budget Permissions  Define Budget Funds  Define Documents and Business Transactions that require Budget Checking  Define Budget Models

4. Budget Control Configuration  Define Budget Control Rules  Define User Permissions  Define Other Settings.

5. Budget Register Entries  Budget data is entered through the use of the Budget Register Entries form.  To enter information into the Budget Register Entry form you will need to perform the following steps:  Select the Budget Model  Select the Budget Transaction Code  Optionally you can select a Reason Code  Enter the Date for which the Budget Register Entry line determines the period that the budget will be recorded to  Select an Account Structure

6. Budget Register Entries  Enter the Dimension Values for the Budget Enabled Dimensions  Enter the Budget Amount and the Budget Amount Type. The budget amount type will default as expense, but this can be changed. The amount Type is required as the main account is not a required element for budgeting.  Specify the Transaction Currency  Click Update the Budget Balances  Please Note: The amount field is either entered manually or you can have it calculated by expanding the Budget Account Entry Details Fast Tab and entering a Quantity and Price. If you calculate the amount off of Quantity and Price, the budget will still use the amount for funds available and not the quantity and price you specify.

7. Budget Control Statistics  You can view the budget balances for a budget cycle and budget model from the Budget Control Statistics form.  This form will show you the budget funds available based on the calculation we setup in Budget Control Configuration. We will also see the calculation it performs at the bottom of the form.  The values will display our funds available, the total revised budget amount, actual expenditures, Budget Reservations for encumbrance, and Budget Reservations for Pre-encumbrance

8. Budget Control Statistics  In the case of using a Purchase Order, After we confirm the purchase order, we can see in the Budget Control Statistics form that we will have a Budget Reservation for encumbrances.  We can now click on the Encumbrances window in Budget Control Statistics and see the Purchase Order in an encumbered state.  Once the Purchase Order is invoiced, we will see that the value from Budget Reservations for encumbrances will now be moved to Total Actual Expenditures.  We can then click on the Encumbrances window in Budget Control Statistics and see the Purchase Order has the encumbrance relieved.