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    Suresh Kumarasamy
    Budget Encumbrance control for Asset purchase
    Topic posted June 9, 2019 by Suresh KumarasamySilver Trophy: 7,500+ Points, tagged Budgetary Control, Financials, General Ledger, Intercompany 
    112 Views, 3 Comments
    Budget Encumbrance control for Asset purchase

    We are not able to control the asset purchase by using Encumbrance control, since asset cost account will not come in to Procure to pay process, this is being challenge for us. Can anyone advice the solution or workaround to control the asset cost account during the PR, PO and AP invoice level.

    We need absolute control for all asset purchase, how can we enable the control. If i enable in supplementary rule it will not be available in procurement flow like PR, PO and AP Inv. since all cost code will hit during post mas addition proces.






    • Praveen T

      Hi Suresh,

      This is can be achievable.  I will provide you the solution approach, you can review in detail and take this forward.

      In case of budget for assets, we need to follow the below

      We need to budget for asset clearing account and respective asset cost account. Budget is required for asset clearing account as the same is being hit during PR/PO process.

      For asset cost, any way budget is required as the cost account is hit when the asset is capitalized.

      I will illustrate with an example so that it would be better for understanding.

      Let us assume total budget for Office Equipment is 5000USD

      You need to budget for Asset clearing account ( 5000) and Office equipment asset cost ( 5000) and you need to associate a rollup group for the both account code combinations in such a way that sum of both cannot exceed 5000.

      This will take care your capital budget/Fixed asset budgeting needs.







    • afton liu

      Yes, as Praveen said, the budget control needs to implement a summary hierarchy and with the label usage.