PO with Budget Control

This page explains how budget validation works on Purchase Orders in PayInvoice Next.

How Budget Control Works on POs

When you select a Budget Code (WBS) on a Purchase Order, the system enforces budget control:

1. On selection: The Available Budget field updates to show the current available amount under that WBS code.
2. On submission: The system compares the PO grand total against the available budget. If the PO amount exceeds the available budget, submission is blocked.

What Is Available Budget?

Available Budget is calculated as:

Available Budget = Original Budget
                 + Amendments (additions)
                 - Amendments (reductions)
                 + Transfers In
                 - Transfers Out
                 - Consumed (submitted POs + submitted PIs)

The Available Budget shown on the PO form reflects the real-time value at that moment.

When Budget Is Insufficient

If you try to submit a PO and the budget is insufficient, you will see an error message:

Budget exceeded for WBS code [CODE]. Required: ₹X. Available: ₹Y. Shortfall: ₹Z.

Your options:

1. Request a Budget Amendment — Ask your budget manager to create a Budget Amendment that increases the budget for this WBS code.
2. Request a Budget Transfer — If another WBS code has excess funds, the budget manager can transfer funds. See Budget Transfers.
3. Reduce the PO amount — Lower quantities or negotiate a lower rate with the supplier.
4. Change the WBS code — If another WBS code has sufficient funds and is appropriate for this purchase.

WARNING

Budget validation cannot be bypassed. There is no override or force-submit option. This is by design to ensure financial discipline.

Multiple POs Against the Same Budget

If multiple POs are being created against the same WBS code simultaneously, the available budget decreases as each PO is submitted. The second PO may fail if the first PO consumed the remaining budget.

TIP

Check the Available Budget immediately before submitting. If you saved the PO hours ago, the budget may have changed since then — refresh the WBS field to get the latest figure.

Budget Impact After PO Submission

Once a PO is submitted, its amount is committed against the budget. The budget is further consumed when the Purchase Invoice is submitted.

Event	Budget Impact
PO Submitted	Amount committed (reduces Available Budget)
PO Cancelled	Amount released (increases Available Budget)
PO Closed (partial)	Unreceived amount released
PI Submitted against PO	No additional impact (already committed at PO stage)

Related Pages

• Budget Overview — How budget management works
• Budget Amendments — How to increase budget
• PO FAQ & Troubleshooting — Budget-related error solutions