Budget envelopes

Off budget envelopes

In budget envelope creation, it is possible to indicate that this envelope must be created without amount. This option is carried out by ticking box "Off budget" in the entry screen. It is used to commit expenses on envelopes, budgets and budget lines whose planned amount is unknown upon budget completion, or that are not to be indicated. The management and evolution of these envelope types follow the process described below:  

• Ticking field "Off budget" in the envelope entry screen authorizes the creation of the envelope, its budgets and budget lines with no amount. The amount entry is prohibited.
• The envelopes, budgets and lines which are "Off budget" (or only budget lines if the approval of lines has been disconnected from their budgets and envelopes approval: user parameter GDDDEPAPP to Yes) must be approved in order to enter purchase expenses (purchase request, orders, invoices). This approval results in fixing the approved envelope, budget and null line amount (or only the null lines).
• The purchase request, order and invoice entry triggers the application of a negative balance to the lines, budget and envelope. The overrun controls implemented in the operating budget management are not applied.
• When the envelope, budget and line amounts are known, they can be loaded via revisions. In order to carry out a revision, the envelop and the budget must have been approved previously if only the budget lines have been approved. After revision, a reserve can be created on these envelopes.
• A utility that can be accessed via menu "Off budget cancellation" is used to perform the cancellation of status "Off budget" when revisions have been carried out.
• If this indicator is kept, no overrun control is carried out in order or purchase request entry.
• If this indicator is canceled, budgets, envelopes and budget lines follow the management rules implemented in the application on overruns.

Project and envelope definition levels

A project can be defined for a site, a company or be transverse, i.e. defined for a group of companies or sites.

A budget envelope is linked to a budget code. This budget code define if the tracking level is the site or the company. Depending on this rule, the envelope is attached either to a company or a site.

The project, budget and budget line definition level follows the following management rules:

• If a project is attached to a site, the linked envelopes are attached to the same site,
• If a project is attached to a company, the linked envelopes are attached to the same company,
• If a project is attached to a group of companies, the linked envelopes are attached to one of the companies belonging to this group or to a site of one of the companies from this group, depending on the budget code characteristics,
• If a project is attached to a group of sites, the envelopes are necessarily attached to one of the sites from this group.  The budget code must be consistent.

For a budget code defined at company level, the definition possibilities are the following:

For a budget code defined at site level, the definition possibilities are the following:

 The groups are dynamic and can be modified. The user has to check that their modifications are consistent.

Envelope, budget and budget line approval

The approval process contains two functions:

Approval request submission:

• From the object concerned: envelope (menu bar), budget by fiscal year or budget line 
• From a submit screen used for a multiple approval request: budget lines, budgets and envelopes or Budgets and envelopes, depending on the user choice, their rights and the general parameters determining the objects to be approved.

Approval validation or refusal:

• Validation or refusal of the approval via the electronic messaging, in response to a received message, by clicking on the corresponding link or by access to the function by selecting the linked file,
• Via a submission screen used to validate or refuse the request for all objects of a multiple request or for a single object.

Approved amount

The review status is set to Approved after the last signature has been obtained. When a review request is approved, the Approved amount on all linked records is not updated. This amount is frozen with the value of the first approved amount for traceability purposes. To see how the Approved amount has changed, run the Review inquiry function.

If one of the circuit signers denies the review, its status is set to Rejected.

During the entire approval cycle, you cannot modify the envelope, budget, budget lines, and review request. This control ends as soon as the review is approved or rejected.

You can only cancel a review after approval with a reverse review.

When approving a single object, the approved amount of this object can be modified, in the limit of the controls applied. For example: The envelope amount cannot be lower than the total of its budgets.The budget amount cannot exceed the envelope amount and must be lower that the total of its budget lines, etc.

Only budget objects having amounts can be submitted to approval and approved, except for those with type Off budget that can be submitted to approval and approved with an amount that equals zero.

The envelope, budget, and budget line approval management is subject to three company parameters used to define controls (Yes/No) to be performed on each budget level. There is no specific consistency control between the various values.

These parameters (GDD chapter, GDD group) are used to specify whether: 

• An approval must be processed at Budget envelope level: GDDAPPENV - Envelope approval
• An approval must be processed at Budget by fiscal year level: GDDAPPBUD - Approval fiscal year budget
• An approval must be processed at Budget line level: GDDAPPLIG - Budget line approval

The various possible combinations are the following:

The combination No + No + No is prohibited by a control applied to the general parameters entry.

If a level is set to No, its Status field will be assigned the status of the superior entity upon creation and will follow this status upon updates.

Thus, if a budget line subject to the evolution of its budget is created after budget submission, this line is created with status Approved; if it is created after approval of its budget, it is created with status Approved. The approval refusal of an object submitted to approval leads to setting the objects linked to its evolution back to status Entered. In the previous example, if the budget is subject to an approval refusal, all its lines take status "entered".

These various approval levels are processed sequentially and based on distinct approval patterns that can be set up:

• Cascade approval : The approval request for a Budget by fiscal year is triggered only if the budget belongs to an approved "Budget envelope" or if no approval is managed at "Budget envelope" level. Also, the approval request for a "Budget line" is triggered only if the line belongs to an approved "Budget by fiscal year" or if there is no approval managed at "Budget by fiscal year" level.
• Multiple approval: You can perform joined approval requests for a line, a budget and an envelope by performing the selection via the lowest level. In case of a configuration requiring the approval of envelopes, budgets and budget lines (Yes + Yes + Yes), choosing a budget line automatically selects the budget and the envelope. If the budget line approval is not desired, the selection is carried out from the budget, which automatically selects the corresponding envelope. The budget lines approval request can only be carried out once their budgets are approved. Selecting the budget line only is not possible if its budget and envelope are not approved.
• Budget line disconnection: These cascade rules can be deleted at user level (general parameter) to allow the approval of a budget line in advance and authorize the posting of purchases on this line without provoking the approval of the corresponding budgets and envelopes. 
• Access restricted by user: Within the framework of the above-mentioned rules, the user parameters USRAPPENV, USRAPPBUDand USRAPPLIGare used to restrict the approval for a given user to envelopes only, budgets only, lines only or to a combination of these objects (envelopes and budgets, or budgets and lines)
  
  These restrictions do not change the approval management rules, and a user who has the authorization for the budget line approval will see these budget lines if the approval parameters plan the direct approval and when budgets and envelopes are directly or indirectly approved. This also applies to a restriction in the approval of budgets, which are displayed if their approval is direct and after envelope approval.

The implementation of an approval management implies the following operation:

• Status set to Entered on an envelope, budget and line record
• Launch of a workflow via button Approval request at the level of each object and/or "Global approval request" function. The status is set to Approve.
• Response to this workflow by the signatory/signatories (based on the signature circuits in use). The status is set to Approved or to Entered in case of refusal. This approval or refusal applies to the object concerned, but also to the objects of lower level which do not contain any approval management.

Budget overrun management

The application contains a budget overrun management which can be set up based on the company management rules. The budget overrun management is used to authorize the budget overrun in purchasing based on criteria that can be set up for envelopes with a type other than "Off budget".

• If no overrun is authorized, the entry of a purchase or order request is blocked as soon as the budget line balance is insufficient.
• If no control is implemented, overruns are authorized and the available budget line balance may become negative; the manager will have to carry out the necessary budget adjustments (revisions).
• If overruns are authorized, they are subject to the criteria implemented and the budget line balance becomes negative, too; the manager has to carry out the necessary adjustments (revisions). If the entered amount overruns the authorized overrun amount, the entry for the purchase or order request is blocked.
• The invoice entry is not subject to the purchase overrun rules. Any entered invoice is authorized whatever its amount; if necessary, credit memo requests will have to be carried out.

Some BUD general parameters are common to operating and analytical budgets.These parameters must contain the following values for the controls on operating budgets to be carried out:

 The following ACH general parameters relating to the commitment and pre-commitment generation must also be activated: 

GDDBUDDEP parameter:  This parameter allows the following choices: 

Envelope amount overrun %: Parameter GDDBUDPRC is used to enter an authorized overrun percentage for the envelope amount. It is relevant only if the potential overrun parameter is "Envelope amount overrun". This percentage is calculated based on the amount of the budget line, budget by fiscal year or budget envelope defined in parameter GDDBUDCTL. The envelope contains an overrun % field used to apply an overrun % different from that of the general parameters, which is applied in priority when entered.

Budget control level: Parameter GDDBUDCTL means that in case of authorized envelope amount overrun, the authorized overrun amount will be calculated based on the entered percentage applied to the line, budget or envelope amount, depending on the selection carried out: Line, Fiscal year or Envelope

Budgetary and accounting postings

So as to satisfy every company legal context, posted amounts in expense accounts must correspond -depending on cases- to:

• the ex-tax amount: regular functioning mode of most companies,
• the ex-tax amount with re-incorporation of the non recoverable VTA amount: banks, insurance companies,
• to the ex-tax amount with re-incorporation of the totality of the VTA amount: administrations, training, health...

The application is used for the posting of expenses and the generation of pre-commitments, commitments and expenses according to one of theses three options. Corresponding budgetary postings are done according to the same rules.

This commitment mode is determined by the PURCMMTAX - Commitment type parameter (ACH chapter, CMM group). The posting of invoices and credit notes and their budget upload depends on the VAT rate and on the deduction percentage.

The supplier code contains the tax rule. Purchase requests can be entered without supplier code: therefore, the PURVACBPR- Default tax rule parameter (ACH chapter, CMM group) can be used to stock a default tax rule for the entry of purchase requests, for the company or the site.

Deletion of envelopes and budgets

It is not possible to delete an envelope including budget lines, it is necessary to delete the budget lines first, if their situation allows it.

An approved budget line cannot be deleted, it is not possible to cancel the approval of a budget line including expenses (pre-commitments, commitments or completed).

An envelope that does not include a budget line can be deleted, with the following updates:

• if the envelope has been renewed or deferred, the link and the information contained in the envelope created are deleted.
• If the envelope originates from a renewal or a deferment, the renewal information is deleted from the original envelope.

Prerequisite

Refer to documentation Implementation

Screen management

The envelope recording and modification function contains three tabs:

• an "Envelope" tab to enter the envelope and budget by fiscal year information,
• A "Miscellaneous" tab to enter the fixed asset information,
• An "Office" tab used to enter or import all the relevant information for the envelope description in the shape of WORD, EXCEL or POWERPOINT documents.

Header

Tab Envelope

Tab Miscellaneous

Tab Office

Reports

By default, the following reports are associated with this function :

 PRTSCR : Screen print

This can be changed using a different setup.

Menu Bar

Approval / Submit for approval

Used to send an envelope approval request to the manager of the approval entity. This request is carried out by workflow message warning the envelope signatory.

Inquiries / Inquiry review

Used to access the inquiry of all revisions completed on the envelope.

Inquiries / Budget situations

 Used to access the envelope, budget and budget line budget situation inquiry.

Signatures / WIP approval

Used to access the list of purchases assigned to the envelope. This list classified by FY, recipient entity and account (budget line), presents the purchase request lines, the order lines and the invoice lines assigned to this budget line.

Each record mentions its tax excl. amount in entry currency. If this record belongs to the pre-committed or committed amount, its amount converted to the ledger management currency is displayed in the corresponding column (pre-committed or committed amount).

• The pre-committed amount is comprised of purchase request lines that have not been turned into orders or that have been closed.
• The committed amount is comprised of order lines that have not been turned into invoices or that have not been closed.
• The invoiced amount is comprised of the posted invoice lines.

The pre-committed, committed and invoiced amounts can differ from the tax excl. amounts of the records for two main reasons:

• Entry currency different from the management currency of the ledger
• Management of purchases on a tax incl. or tax excl basis, including a part of non recoverable tax (VAT).This management is determined by the PURCMMTAXand >PURVACBPR parameters.

 An invoice line does not have to correspond to an accounting entry line since this document can be made of several purchase lines.The fields Quantity, Unitprice, Line amount, Product and Description are not loaded when posting a purchase invoice as this data would not be relevant.

Signatures / WIP review

Used to access the planned signature circuit inquiry for envelopes pending approval. This inquiry is displayed in the shape of a grid containing a line per signatory. The lines are generated in parallel to the progress in the various signature circuit stages. Each line contains the following information:

• Approval number: information automatically assigned by the system upon each approval request,
• Approval type: multiple or individual. For a "multiple" approval request, it is possible to inquire the various objects that constitute the approval by selecting "Approval detail" from the Action icon menu
• Chronological number: automatically generated number for each signature line,
• Approval date of each line. In the end, the object approval date will be the one of the approval competed by the last signatory,
• Sender: code of the user having carried out the approval request for a first signature, or code of the previous signatory,
• Recipient: code of the user who has to carry out the next signature,
• Tracked text: approval description automatically generated and containing the approval and envelope number for an approval request, then the code of the previous signatory for an approval containing several signatories,
• Signatory: code of the signatory who has accepted or refused the approval,
• Signature: For each line of the grid, approval line status "to be signed", "signed",
• Response: Approval or refusal,
• Reason: Completed in case of refusal
• Signature level: from 0 to 8, level 0 being the first line of the signature circuit,
• Number of signatories taking part in the signature circuit,
• Signatory 1 to signatory 9: codes of the various signatories in the approval circuit.

Signatures / Approval history

Used to access the planned signature circuit inquiry for envelopes pending revision.

This inquiry is displayed in the shape of a grid containing a line per signatory in the approval circuit. Each line contains the same information as that described in the approval in process.

Signatures / Review history

Used, for envelopes subject to approved revisions, to access the completed signature circuit inquiry, to know the approval or refusal date, the code of the last signatory and the revision status.

This inquiry is displayed in the shape of a grid containing a line per signatory in the approval circuit. Each line contains the same information as that described in the approval in process.

Signatures / Review history

Limits

Error messages

In addition to the generic error messages, the following messages can appear during the entry :

Automatic counter

The entered "Budget type" points to an automatic counter and the user tries to manually enter the envelope code in field "Envelope". Erase the entered ode and let the automaton work, or enter a budget type that corresponds to a manual counter.

Nonexistent budget type

You have entered a "Budget type" that does not exist in the budget type table. Select a budget type in the list.

The budget code must be flagged "Expense"

You have entered a "Budget type" not flagged as "Operating budget". Select a budget code in the list that only displays budget codes flagged "Operating budget", or modify the setup of the budget code.

The envelope must be linked to a project

Parameter GDDPRJENV, which is defined at folder or company level, forces the attachment to a project. Search for a project code in the selection list, or modify setup GDDPRJENV.

Currencies incompatible

The envelope company or site currency is different from that of the entered project. Modify the attachment project, pr modify the envelope attachment (budget code, company or site code).

The project, defined as a group of sites, is not compatible with the budget code (company level)

The entered budget code is defined at company level, the project is defined at site group level. You have to select a budget code define at site level if you want to keep the site group, or to select a project defined at company or site group level if you want to keep the budget code.

Incorrect company

The entered company code does not exist.

The company does not belong to the companies of the project group

The entered company does not belong to companies belonging to the group of companies to which the entered project is attached. Select the company code in the list that only displays companies belonging to the group of companies or modify the envelope attachment project.

Only companies/sites with their main analytical ledger set to Operating budgets are authorized.

The entered company is attached to a main analytical reference base not ticked as "Operating budgets". Modify the company code.

Incorrect site

The indicated site code does not exist.

The site does not belong to the sites of the project group

The entered site does not belong to sites belonging to the group of sites to which the entered project is attached. Select the site code in the list that only displays sites belonging to the group of sites or modify the envelope attachment project.

Inconsistency between the company of the managing entity and the company of the envelope

When a responsible entity is attached to a company, the envelope and the envelope reference project must be created within the same entity. Modify the responsible entity to replace it with an entity that is not attached to a company or attached to the same company as that of the envelope and project.

Inconsistency between the entity and envelope dimension types of the company ledger and those of the budget setup

The budget code and the main analytical reference base of the company must have an ENVELOPE and ENTITY dimension type. You have entered an inappropriate budget or company code, check and modify the entry.

The currency of the budget code is not compatible with that of the main analytical ledger for this company/site.

You have entered a "Budget code" and a "Company code" that are not managed in the same currency. Modify either of them for the currency code to be identical.

There is no fiscal year for the project dates on this company

The project start and end dates concern non created company fiscal years. Modify the project dates or create the necessary fiscal years for the company.

Entity not flagged 'Budget entity'

The responsible entity entered is not planned for the envelope entry since it is not flagged "Budget entity". Modify the entity code or the entity setup.

There is no fiscal year defined with this company/site for this date

The realization period concerns non created fiscal years. Modify the envelope end date or create the missing fiscal years.

The maximum start date must not be prior to the first day of the fiscal year

This message appears if an annual envelope start date is replaced by a date inferior to the first day of the fiscal year while the end date is already entered. Modify the entry start date.

The envelope completion period cannot exceed that of the project.

For a pluriannual envelope attached to the project, the envelope entry end date is superior to the attachment project end date. Modify the project or envelope end date.

An approved fiscal year budget cannot be deleted

You are trying to decrease the end date of a pluriannual envelope, which means trying to delete the approved budget of the corresponding fiscal year. Cancel the end date modification or cancel the budget approval if controls allow it.

A fiscal year budget comprising budget lines cannot be deleted

You are trying to decrease the end date of a pluriannual envelope, which means trying to delete the non approved budget containing budget lines from the corresponding fiscal year. Cancel the end date modification or delete the budget lines if their statuses allow it.

There is no fiscal year defined with this company/site for this date

This message is displayed when the entry end date is superior to the last fiscal year end date created for the company. You have to modify the end date entry or to create the missing fiscal years.

The maximum end date must not be later than the last day of the fiscal year

This message appears if an annual envelope end date is replaced by a date superior to the last day of the fiscal year while the start date is already entered. Modify the entry end date with a date inferior or equal to the date of the fiscal year last day.

The available amount of the envelope cannot be prior to the amount broken down among the budget(s)

On an envelope with status "Entered" you are decreasing the envelope amount or increasing its reserve amount to make the amount available for the fiscal year distribution into budgets inferior to the amount already distributed over the budget(s). Decrease the amount of the budget(s) or correct the envelope amounts. On an envelope with status "Approve" or "Approved", you have increased the amount of the reserve beyond the available envelope amount. Modify the entered reserve amount.

The sum of the amounts of budgets by fiscal year must not exceed the available envelope amount.

You are increasing the amount of a budget. This provokes the overrun of the available envelope amount. Decrease the entered budget amount, increase the envelope amount, or decrease the amount of its reserve for the sum of the entered budgets to be inferior or equal to the available envelope amount.

The available amount of the budget cannot be less than the amount broken down among the lines

You are decreasing the amount of a budget which results in making this amount inferior to the sum of the budget lines posted on this budget. Decrease the amount of the budget lines or increase the amount of the budget.

The reserve amount cannot exceed or be equal to the budget amount of the fiscal year.

For a budget with no budget lines, you are entering a reserve amount equal or superior to the budget amount. The reserve amount must be inferior to the budget amount. Modify the entered reserve amount.

The entered reserve amount exceeds the available budget

For a budget with budget lines, you are entering a reserve amount superior to the available budget amount. The reserve amount cannot be superior to the budget amount - the total of its budget lines. Decrease the entered reserve amount.

You will erase the current document if you change the document type. Do you want to continue ?

Warning message displayed when the envelope has been created with a WORD-type document for instance and when the user chooses a different document type, such as EXCEL or POWER POINT. Answering "Yes" erases the WORD document and the user can create a document of another type; answering "No" is used to keep the original document, which can be modified.

Object of the envelope being reviewed. Modification impossible

You are trying to create a budget line on an envelope being revised. This action is prohibited as long as the revision is not approved or refused.

Incompatibility between the chart of accounts of the budget and the CoA of the main analytical ledger for this company/site

The system displays this message when the chart of accounts defined in the budget used, is not identical to the chart of accounts of the main analytical ledger of the company.

Inconsistency between the legislation code of this company/site and that of the budget type entered

This message is displayed when the legislation code entered in the "Budget type" (GESBUT) is different from the legislation code defined for the envelope attachment company. If this legislation code is not entered, this budget type can be used whatever the legislation code of the envelope company.

Inconsistency between the entity and envelope dimension types of the company ledger and those of the budget setup

This message is displayed when the budget code is entered and the company/site code do not include the same analytical dimension types. Change the company/site code or the budget code.

Date incompatible with the validity dates of the budget

Message displayed when the validity date of the budget code, managing entity, approving entity or reporting entity does not comply with the envelope completion date.

Outside of validity date limit

Message displayed when the validity date of the budget account, recipient entity, or third dimension type (analytical dimension) does not comply with the envelope completion date.

Tables used

Refer to documentation Implementation