Budget Amendment Types

PayInvoice Next provides two distinct budget amendment documents: Supplementary Budget (increase) and Budget Decrease (reduction). This page explains when to use each and how they differ.

Supplementary Budget (Increase)

Use a Supplementary Budget when you need to add funds to one or more WBS codes.

Typical situations:

• Project scope expanded and additional budget approved
• Annual budget revision with increased allocations
• Emergency funding approved for unforeseen costs
• Correction of an under-allocated initial budget

What happens when submitted:

• Budget Entry records are created with credit amounts
• Available Budget on affected WBS codes increases
• The total project budget grows by the supplementary amount

See Create a Budget Amendment for step-by-step instructions.

Budget Decrease (Reduction)

Use a Budget Decrease when you need to formally reduce the budget allocated to one or more WBS codes.

Typical situations:

• Project scope reduced and excess budget must be returned
• Organizational budget cuts across departments
• Reallocation away from a WBS code (when a Budget Transfer is not appropriate)
• Year-end budget reconciliation

Step-by-Step: Budget Decrease

1. Navigate to Budget > Budget Decrease > + New.

2. Select the Project. The Company and Project Name auto-fill.

3. Choose your entry mode:

   • Single WBS mode (default): Select the WBS code.

     • The WBS Original Budget and WBS Available Budget display for reference.
     • Enter the Decrease Budget By amount.

   • Multiple WBS mode: Check Multiple Decrements to reduce budgets for several WBS codes at once.

     • In the items table, add rows for each WBS code.
     • For each row, review the Overall Budget and Available Budget, then enter the Decremental Budget amount.

4. Enter the Reason for the decrease (mandatory).

5. Set dates and optionally attach supporting documentation.

6. Click Save, then Submit.

What happens when submitted:

• Budget Entry records are created with debit amounts
• Available Budget on affected WBS codes decreases
• The total project budget shrinks by the decrease amount

WARNING

You cannot decrease a WBS code's budget below its current consumption. If the decrease amount would result in a negative Available Budget, review outstanding commitments before proceeding.

Comparison

Feature	Supplementary Budget	Budget Decrease
Direction	Increases budget	Reduces budget
Budget Entry effect	Credit	Debit
Single WBS mode	✅	✅
Multiple WBS mode	✅	✅
Reason required	✅	✅
Can be cancelled	✅	✅
Can be amended	✅	✅

When to Use Transfer Instead

If you need to move budget from one WBS code to another without changing the total project budget, use a Budget Transfer instead of creating a separate decrease and increase. A transfer is a single document that debits one code and credits another in one atomic operation.

Related Pages

• Create a Budget Amendment — Step-by-step for Supplementary Budget
• Budget Transfer — Moving funds between codes
• Budget Entry Overview — How amendments generate entries