AX 2012 Budget Control

Hi There,

In AX 2012 can we have budget control (validation) on Balance Sheet Items.

That is can i validate the defined budgets for balance sheet accounts at the time of transaction posting.

My requirement is that, i need to have budgets over my Inventory receipt account and need to track that it is not getting exceeded at the time of Purchase request.

It would be great if some one can provide answer on this.

THanks in advance.



I am pretty sure the answer to this is yes basing it on the purchase request element of your question - bufgetary control by Purchase Order was written in for AX2012, you will need to review the functionality further to see if it meets your needs.

Hi Adam,

I am aware that budgetary control is available for purchase request/order,. but here my question is whether that can be controlled through balance sheet account.

Let me know.



But you are not hitting the balance sheet on the entry of a purchase order are you?

Also looking at the manual and budgetary model and control rules it states

"Only main account types of Total, Profit and Loss, and Expense are available for selection because these are the accounts typically used in recording actual expenditures."

Therefore it is a specific system written restriction to not allow the budetary control on Balance Sheet accounts by the sound of it.

True i am not hitting balance sheet on entry but for any purchase of inventory item i need to validate against a inventory receipt account, so i need to have control over my balance sheet inventory account and i define budget for that.

Yes that statement from the manaul gave me the doubt and when i tried with balance sheet account it budget control did not work.

The budget check is on entry I believe, and although ultumately the balance sheet account is hit for the inventory asset this is too late from a budgetary perspective, it is there by then and you can do nothing about it, you need to define your budgets on expense accounts for the controls to work as they are intended. I am not sure even if you tried to modify this how it would work.

On invoicing the purchase order, the entry that will posted will be the below

Inventory Receipt a/c Dr

Sundry creditors(payables) a/c Cr

So i need to have budget on my Inventory receipt account and have control over that.

Let me know.



I did not understand your scenrio , why do you want to control at the time of receiving the material / Invoice. Genral business process should be at time of creating the PO , system should control , not at the time of Packing slip.

Yes i want control only at the time of creation only but my doubt is against which ledger account i can validate. Let me know.

So you want to control the budget at the point of receipt, not the point of entry? Seems late by that stage as you have already made the committment to the vendor - what are you going to do?

Even if i want to control at point of entry, what should be the ledger account should i use. Let me know.

It should be main inventory account , not the inventory accural account. I suggest you do the configuration and test the results, that you will come to know.

If it is inventory account then it is a balance sheet item. So again i go back to the my first question that if it is balance sheet account then we cannot have budget control on that. Let me know

I believe it depends upon the budget model configuration for the purchase order source documetn type, but I have never set it up - have you gone through the manual?

Yes i have gone through. It is the fact that system is not designed in a way to have budget control on balance sheet items. So we need to find a way around to have control over the budget at purchase entry by not having budget on inventory account. Need to identify the ledger account through which we can enter budget and have control.

This is the expense account you would ultimately control purchases on by dimension and not the balance sheet account fo inventory. In part this depends upon the purchase and posting setup. I am afraid it is not something I have opened as yet so I cannot really comment upon it.

Try setting up budget on account named ‘Purchase expenditure for product’. That’s a P&L type a/c and generally is same as your COGS or Cost of Sales or whatever you term it as. You will get an error while you are invoicing the vendor. Although it does not hold good anyway since you’d be receiving your goods using your product receipt. That way you would have the goods entering your inventory without hitting purchase expenditure for product account. And it does not make sense as you have already taken in the goods from your vendor and now you are refusing to invoice and book whatever liability in your books. It is like you want to purchase but do not want any liabilities. Or if you want to try, you can try Purchase Expenditure un-invoiced. Good luck!

I think you can create another total account which containing the inventory account only OR you can add the inventory account plus the accrual account…

This new ‘Total’ account might be accepted by the ‘Budget Control Function’

Test it, and let me know


AX does support budget control. By it’s very definition budget control implies that you can set up limits on ledger accounts or in the case of AX you can define limits by dimensions. For example … suppose you wanted to distribute the amounts in the Purchase Order to like you said an inventory receipt account you’d have to first create a budget register entry for the period under consideration, and then define the appropriated budget amount for the ledger account first. Assuming that you’ve activated budget control (and that you’ve also set the 'Perform the budget check on line entry for Purchase Order" setting in the Budget control configuration form), you could then go into your source document in this case the Purchase order, and add a line for the item you’re purchasing, enter the quantity and unit prices, and then using the Financials Tab->Distribute amounts form to distribute it to the ledger account for expensing this item, the system would perform a check and then allow or not allow the transaction depending on the calculations …

Keep in mind that setting up budgeting requires several configuration steps and also keep in mind that budget control depends on the calculations configured in the budget configuration forms to establish what is added (you could add carry over amounts etc to the original budgeted amount) and what is subtracted (pre-encumbrances and/or encumbrances etc)

Let me know if I can clarify any of this to your further satisfaction?

Hi Barath,

Try configuring this control across account type “Purchase Expenditure for Product”, ideally it should work.