PUBLIC

Document Version: 2308 – 2023-10

Managing Budgets in Buying Solutions from SAP

Ariba
SAP Ariba Buying
© 2023 SAP SE or an SAP affiliate company. All rights reserved.

SAP Ariba Buying and Invoicing

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Content

Managing Budgets in Buying Solutions from SAP Ariba. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Budget Check Configurations in SAP Ariba Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Budget Checks in SAP Ariba Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Workflow Diagram: Budget Approval Process for a Requisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Typical Budget Check Scenarios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Funds Reservation for Requisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Budget Checks on Imported Requisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Budget Checks on Changed and Canceled Requisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Budget Checks on Denied Requisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Budget Checks on Collaborative Requisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Limitations to Budget Checks on Collaborative Requisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Budget Matching Based on Accounting Periods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Accounting Period Based on Delay Purchase Until Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Accounting Period Based on Need by Date. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Budget Check Error Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Scenarios in Which a Budget Approver Is Added to the Requisition Approval Flow. . . . . . . . . . . . . . . . . . 12
Scenarios in Which a Budget Approver Is Not Added to the Requisition Approval Flow. . . . . . . . . . . . . . . 14
Managing a Requisition with No Budget Match. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Managing a Requisition When Multiple Budgets Match. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Managing a Requisition When Amount Exceeds Total Available Amount. . . . . . . . . . . . . . . . . . . . . . . . . 17
Budget Check Warnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Managing Requisitions with Budget Check Warnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Available Budget Amount Formula. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Budget Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Managing Budgets in Buying Solutions from SAP Ariba

2 PUBLIC Content
Managing Budgets in Buying Solutions from
SAP Ariba

This guide is for SAP Ariba administrators and procurement users responsible for budget checks on requisitions.

The information in this guide is applicable for sites that perform budget checks within the SAP Ariba solution.
Requisition items are validated against budget data loaded from the ERP system into the SAP Ariba solution.

This guide applies to:

• SAP Ariba Buying and Invoicing

• SAP Ariba Buying

If your site is configured for budget checks in an external ERP system, see Budget Checking in External Systems.

Related Guides

Purchasing Guide for Procurement Professionals

Procurement Data Import and Administration Guide

Managing Budgets in Buying Solutions from SAP Ariba

Managing Budgets in Buying Solutions from SAP Ariba PUBLIC 3
Budget Check Configurations in SAP Ariba
Solutions

Depending on how your buying solution is configured, you can validate requisitions for budgets using one of the
following features:

• Budget checks on requisition items against budget data loaded from the ERP system to the buying solution:
In this case, because budget data is stored in the ERP system and in the buying solution, it needs to be
synchronized between both systems.
• Budget checks in external ERP systems: Refers to real-time budget checks to validate requisitions against
budget information hosted in an external ERP system. In this case, the budget data is maintained only in the
external system.

 Note

For sites that are enabled for both budget checking within the buying solution and budget checking in external
systems, the ability to perform budget checks within the buying solution is automatically disabled starting from
the date that is specified to enable budget checking in external systems.

Related Information

Budget Checking in External Systems

Managing Budgets in Buying Solutions from SAP Ariba [page 3]

Managing Budgets in Buying Solutions from SAP Ariba

4 PUBLIC Budget Check Configurations in SAP Ariba Solutions
Budget Checks in SAP Ariba Solutions

Organizations define budgets to control the expenses that they incur when procuring material or services. Budgets
are defined and implemented at various organizational and accounting levels, such as Projects, GL Accounts, Cost
Centers, and Internal Orders, or a combination of many of these levels within companies.

 Note

The Budget Check functionality is a standard functionality in SAP Ariba Buying and Invoicing, and an optional,
fee-based service in SAP Ariba Buying. If you are an SAP Ariba Buying customer and are interested in the
Budget Check functionality, contact your SAP Ariba Sales Representative.

A budget comprises a collection of budget items. Each item is a unique combination of accounting fields and a
budget period. An allocation amount is defined for each combination.

All requisition and purchase order amounts are tracked against the allocated amount that is specified for a
particular accounting combination (accounting fields and budget period).

The budget check feature performs validations to ensure there is an adequate budget available, and that this
budget is associated with a requisition when the requisition is created. Requisitions can be submitted for approval
only when the budget check is successful.

The budget check feature identifies and checks each accounting split in a requisition line item against a unique
budget code. When this feature is enabled on your site, budget checks are performed for requisitions that are
created in SAP Ariba Buying and Invoicing and SAP Ariba Buying, by default.

The approval flow for submitted requisitions is based on the configuration of your budget check feature. Your
requisitions are either:

• Not allowed to be submitted if the budget check fails.

• Submitted, but the Budget Approver is added to the approval flow.

Users belonging to the Budget Manager and Budget Approver groups can search for budgets using various search
filters. Budget approvers can view, modify, approve or deny requisitions.

You can configure your site to either reset the approval graph (by deleting all approval nodes) or choose to
retain all existing approval nodes and append additional nodes (post-collaboration approvers) to the approval
flow, if required. To configure this feature, please have your Designated Support Contact log a service request
and an SAP Ariba Support representative will follow up to complete the request by configuring the parameter
Application.Approvable.NeverRetainApprovalRequests.

Related Information

Workflow Diagram: Budget Approval Process for a Requisition [page 6]

Typical Budget Check Scenarios [page 7]
Funds Reservation for Requisitions [page 7]
Budget Checks on Imported Requisitions [page 8]

Managing Budgets in Buying Solutions from SAP Ariba

Budget Checks in SAP Ariba Solutions PUBLIC 5
Budget Checks on Changed and Canceled Requisitions [page 8]
Budget Checks on Denied Requisitions [page 8]
Budget Checks on Collaborative Requisitions [page 9]

Workflow Diagram: Budget Approval Process for a

Requisition
The following diagram provides an overview of the budget approval process when you manage budgets within SAP
Ariba Buying solutions:

Managing Budgets in Buying Solutions from SAP Ariba

6 PUBLIC Budget Checks in SAP Ariba Solutions
Typical Budget Check Scenarios
The following are some typical scenarios that describe how requisitions are managed in the procurement workflow
if your site is enabled for budget checks within SAP Ariba Buying solutions:

• If a user withdraws the requisition:

The amount specified in a requisition is reserved in the associated budget when the requisition is submitted.
The reserved amount for a submitted requisition is automatically released and is returned to the allocated
amount for the associated budget when the user withdraws the requisition.
• If an approver edits the requisition amount to exceed the allocated budget amount:
If a submitted requisition has passed the budget check, but an approver edits the requisition amount to exceed
the allocated amount, SAP Ariba Buying solutions run a budget check again and adds a Budget Approver to the
approval flow because the budget check fails at this point.
• If the budget period expires while the requisition is still in the approval process:
If a requisition is approved after the budget period for that requisition expires, SAP Ariba Buying solutions
fail the budget check with an exception stating no budget was found matching the requisition line items. The
budget approver can then associate a valid budget to this requisition and approve it.

Funds Reservation for Requisitions

If your site is enabled for budget checks in buying solutions from SAP Ariba, whenever a requisition is submitted,
it is matched against the existing budgets. To reserve funds for the requisition, every split line (or line item, if split
accounting is not used) is matched to a unique budget. If sufficient funds are found in the budget(s), the funds are
reserved and become unavailable for any other purchase. If funds are not available, a budget approver is added to
the approval flow, and this budget approver can take an appropriate action on the requisition. When this requisition
is approved and one or more purchase orders are created from the requisition, the funds that are reserved are
encumbered (ordered). If the requisition is changed at any point in time, the budget check is performed again
on the changed portion of the requisition. If the requisition is canceled, the funds reserved for the requisition are
released back to the budget allocation.

Every budget has an allocated amount for an accounting period. Additionally, budgets can have a tolerance
percentage set. The total allocated amount for an accounting period is the allocated amount specified for the
accounting period plus the tolerance amount. The total available amount for the budget period is derived as
follows:

Available Amount in a period = Allocated Amount + Adjustment Amount - [Reserved Amount (from requisitions) +
Consumed Amount (from purchase orders)]

Budget Reservation for Taxes, Charges, and Discounts on Requisitions

If taxes, charges, or discounts are applied on a requisition, budget is reserved for the gross amount of the
requisition, which includes the tax amount, charge amount, and discount amount on the requisition. By default,
taxes and charges applied on a requisition line item have the same accounting details as the line item. If split
accounting is used for a line item, its tax and charge amounts are split in the same proportion as the line item

Managing Budgets in Buying Solutions from SAP Ariba

Budget Checks in SAP Ariba Solutions PUBLIC 7
amount. Budget is reserved for the requisition's tax and charge amounts using the accounting details of the parent
line item.

If the tax code applied on a requisition line item has a deductible tax component, then budget is not reserved
for the deductible tax component. If the tax code applied on a charge has a deductible tax component, then the
deductible tax component uses the accounting details of the requisition line item, and budget is reserved for it.

Budget Checks on Imported Requisitions

In the default configuration for a site enabled for budget checks within SAP Ariba Buying solutions, imported
requisitions are not validated against any budget. You can choose to enable the budget check feature for imported
requisitions. To enable this feature, have your Designated Support Contact log a service request and an SAP Ariba
Customer Support representative will contact you. When this feature is enabled, imported requisitions go through
budget check validations in the same manner as requisitions that are created in SAP Ariba Buying solutions.

Budget Checks on Changed and Canceled

Requisitions
For a site enabled for budget checks within SAP Ariba Buying solutions, if a requisition submitted prior to the
budget activation date is changed, the budget check is performed only for the changed items on the requisition.
That is, if the split line amount has increased in amount, the budget is then consumed only for the increased
amount, but if the amount has decreased, there is no impact on the associated budget.

If the requisition is submitted after the budget activation date and has reserved funds from a budget, and the
amount of purchase is increased, the budget is reserved for the increased amount. If the amount of purchase is
decreased, the corresponding amount (the decreased amount) in the purchase is released back into the budget
allocation amount.

Budget check treats canceled requisitions and purchase orders similarly.

Budget Checks on Denied Requisitions

If your site is enabled for budget checks within SAP Ariba Buying solutions, funds that are reserved for a requisition
are not automatically reverted to the budget allocation if an approver denies the requisition. The reserved funds are
released back into the budget allocation only when the requester withdraws the requisition.

If the requester re-submits a withdrawn or denied requisition without any changes, that requisition does not go
through a budget check again.

Managing Budgets in Buying Solutions from SAP Ariba

8 PUBLIC Budget Checks in SAP Ariba Solutions
Budget Checks on Collaborative Requisitions
For a site enabled for budget checks within SAP Ariba Buying solutions, collaborative requisitions undergo budget
checks only at the end of the “collaboration” phase. This means that funds from associated budgets are consumed
only when you click Finish Collaboration Submit .

For example, consider a scenario where you created a requisition with two lines:

• L1 - collaborative line associated with budget BC-01

• L2 - non-collaborative line associated with budget BC-02

In the above example, the budget accumulators (available and consumed amounts) for both L1 and L2 are
refreshed and displayed only after you accept the proposal for L1, finish collaboration, and submit the requisition.

 Note

If a requisition line fails the budget check, you may or may not be allowed to submit the requisition (depending
on how the budget check feature has been configured on your site).

Limitations to Budget Checks on Collaborative Requisitions

• The Budgets tab lists the available budgets (in the pre-collaboration phase) based on the selections made
for each requisition line. After initial submission, the associated budget details are displayed, but the budget
accumulators (requested, available, and consumed amounts of the associated budget) are not updated on this
page until you click Finish Collaboration Submit , and the budget check is successful.

 Note

The Budgets tab provides accurate budget details only after collaboration phase is completed and you
have submitted the requisition.

• The requisition lines are not updated with the accepted proposal details until you finish collaboration.
The amounts and related details from the accepted proposal are reflected on the requisition lines only after you
have accepted the proposal, finished collaboration and submitted the requisition.

Managing Budgets in Buying Solutions from SAP Ariba

Budget Checks in SAP Ariba Solutions PUBLIC 9
Budget Matching Based on Accounting Periods

During budget checks, SAP Ariba Buying solutions identify a budget code that matches with the requisition and
associates an appropriate accounting period to the requisition line. The funds for that line item are reserved for the
selected accounting period of the budget code.

SAP Ariba Buying solutions select the accounting period based on one of the following two values in the requisition:

• Delay Purchase Until date

• Need-By date

Accounting Period Based on Delay Purchase Until

Date
In the default configuration, SAP Ariba Buying solutions select the accounting period based on the date that is
specified in the Delay Purchase Until field in the requisition header. That is, if you have specified this date, SAP
Ariba Buying solutions associate the requisition with (and reserves funds from) an accounting period that matches
with the Delay Purchase Until date.

 Note

1. If you have not specified any value in the Delay Purchase Until field, SAP Ariba Buying solutions
automatically consider the date of requisition submission to identify the accounting period to be
associated.
2. The purchase order is created on the date that is specified in the Delay Purchase Until field in the
requisition, but the funds are reserved from the corresponding accounting period of the matching budget
code on the date when the requisition is submitted.

Accounting Period Based on Need by Date

You can choose to configure SAP Ariba Buying solutions to identify and associate an accounting period based on
the Need-By Date in the requisition line item, instead of the Delay Purchase Until value (the default behavior). To
configure this behavior, have your Designated Support Contact log a service request, and an SAP Ariba Customer
Support representative will contact you.

If SAP Ariba Buying solutions are configured to consider the Need By date for associating an accounting period to
the requisition line item, this takes precedence over the default behavior of considering the Delay Purchase Until
date.

Also, the purchase order is created as soon as the requisition is approved, though you may have specified a future
Need-By Date. If the supplier does not adhere to the Need-By Date when delivering the materials or services, such
deliveries may not match with the accounting period from which the funds were reserved.

Managing Budgets in Buying Solutions from SAP Ariba

10 PUBLIC Budget Matching Based on Accounting Periods
If you have not specified a Need-By Date at the requisition line item level, SAP Ariba Buying solutions consider the
Delay Purchase Until date (specified in the requisition header level) to associate an appropriate accounting period.

 Restriction

The Need By date specified at the requisition header level is not considered by SAP Ariba Buying solutions in
identifying or associating a corresponding accounting period.

Managing Budgets in Buying Solutions from SAP Ariba

Budget Matching Based on Accounting Periods PUBLIC 11
Budget Check Error Conditions

A requisition, when submitted, is validated against many budget check attributes.

The user experience during a requisition’s budget check process is based on the budget check configuration.
This configuration determines the conditions under which budget check validations fail (preventing submissions of
requisitions), and also the conditions under which requisitions can be submitted.

When a requisition fails budget checks in SAP Ariba Buying solutions, a Budget Approver is added to the requisition
approval flow in any of the following error conditions:

• There is no budget that matches the requisition

• There are multiple budgets matching the requisition
• The amount exceeds the total available amount (that is, available amount + tolerance amount) in the
associated budget
• The requisition amount exceeds the associated budget threshold

 Note

This is more of a warning than a condition for failure. The budget check in this instance is still successful,
but with warning messages. The Budget Approver that is added to the workflow can then take the
appropriate action.

Related Information

Scenarios in Which a Budget Approver Is Added to the Requisition Approval Flow [page 12]
Scenarios in Which a Budget Approver Is Not Added to the Requisition Approval Flow [page 14]
Managing a Requisition with No Budget Match [page 15]
Managing a Requisition When Multiple Budgets Match [page 16]
Managing a Requisition When Amount Exceeds Total Available Amount [page 17]
Budget Check Warnings [page 18]

Scenarios in Which a Budget Approver Is Added to

the Requisition Approval Flow
The following table lists scenarios in which a Budget Approver is added to the approval flow of a requisition when
the requisition undergoes budget checks within SAP Ariba Buying solutions.

Managing Budgets in Buying Solutions from SAP Ariba

12 PUBLIC Budget Check Error Conditions
  Note

The only exception where a Budget Approver is not added even when the Budget Approver rule is applied is
when the requisition has a contract associated with it. In this scenario, a Budget Approver is not added to the
approval flow even if the budget check fails.

Configured to Fail
Budget Check Configured to Allow
When No Budget Requisition Submit on
Missing Budget Attribute Found? Error? Result

A budget code is not defined Yes Yes You see a warning message, but can you submit
the requisition.

The Budget Approver is added to the approval

flow.

A budget code is not defined No Yes You do not see any warning or error messages,
and you can submit the requisition.

A budget code is not defined Yes No You see an error message. You cannot submit
the requisition without resolving the error.

A budget code is not defined No No There is no warning or error message, and you
can submit the requisition.

The budget code is defined, Yes Yes You see a warning message, but you can submit
but has no matching period the requisition.

The Budget Approver is added to the approval

flow.

The budget code is defined, No Yes You do not see any warning or error messages,
but has no matching period and you can submit the requisition.

The budget code is defined, Yes No You see an error message. You cannot submit
but has no matching period the requisition without resolving the error.

The budget code is defined, No No There is no warning or error message, and you
but has no matching period can submit the requisition.

The budget has a match- Yes Yes You see a warning message, but you can submit
ing period, but no allocation the requisition.
amount
The Budget Approver is added to the approval
flow.

The budget has a match- No Yes You see a warning message, and you can submit
ing period, but no allocation the requisition.
amount
The Budget Approver is added to the approval
flow.

The budget has a match- Yes No You see an error message. You cannot submit
ing period, but no allocation the requisition without resolving the error.
amount

The budget has a match- No No You see an error message. You cannot submit
ing period, but no allocation the requisition without resolving the error.
amount

Managing Budgets in Buying Solutions from SAP Ariba

Budget Check Error Conditions PUBLIC 13
Related Information

Scenarios in Which a Budget Approver Is Not Added to the Requisition Approval Flow [page 14]

Scenarios in Which a Budget Approver Is Not Added

to the Requisition Approval Flow

The following table lists scenarios in which a Budget Approver is not added to the approval flow of a requisition
when the requisition undergoes budget checks within SAP Ariba Buying solutions:

Configured to Fail
Budget Check Configured to Allow
When No Budget Requisition Submit on
Missing Budget Attribute Found? Error? Result

A budget code is not defined Yes Yes You see a warning message, but you can submit
the requisition.

A budget code is not defined No Yes You do not see any warning or error messages,
and you can submit the requisition.

A budget code is not defined Yes No You see an error message. You cannot submit
the requisition without resolving the error.

A budget code is not defined No No There is no warning or error message, and you
can submit the requisition.

The budget code is defined, Yes Yes You see a warning message, but you can submit
but has no matching period the requisition.

The budget code is defined, No Yes You do not see any warning or error messages,
but has no matching period and you can submit the requisition.

The budget code is defined, Yes No You see an error message. You cannot submit
but has no matching period the requisition without resolving the error.

The budget code is defined, No No There is no warning or error message, and you
but has no matching period can submit the requisition.

The budget has a match- Yes Yes You see a warning message, but you can submit
ing period, but no allocation the requisition.
amount

The budget has a match- No Yes You see a warning message, and you can submit
ing period, but no allocation the requisition.
amount

The budget has a match- Yes No You see an error message. You cannot submit
ing period, but no allocation the requisition without resolving the error.
amount

The budget has a match- No No You see an error message. You cannot submit
ing period, but no allocation the requisition without resolving the error.
amount

Managing Budgets in Buying Solutions from SAP Ariba

14 PUBLIC Budget Check Error Conditions
Related Information

Scenarios in Which a Budget Approver Is Added to the Requisition Approval Flow [page 12]

Managing a Requisition with No Budget Match

This procedure is applicable for sites enabled for budget checking within SAP Ariba Buying solutions.

Prerequisites

You must be a member of the Budget Approver group to manage a requisition with no budget match.

A requisition fails the budget check if a budget is not associated with it. When a requisition is submitted and the
budget check fails with an error message that states that there was no budget found in the accounting period for a
line item on the requisition, the Budget Approver group is added to the approval flow automatically. The Budgets
page provides the accounting information for each line item and the reasons for the budget check failure.

Procedure

1. On the dashboard, click the number of requisitions in the My Requisitions action tile.
2. On the Search Results page, click the requisition that failed the budget check.
3. On the Summary tab, click Edit Budget Details.

The Budgets page appears.

4. Click Actions and select one of the following:

• Skip Budget Check: Overrides the budget check failure without assigning a budget and force approves the
requisition even though a budget is not associated with the line item.

 Note

This can be useful if there are no budgets defined for a particular budget period.

• Assign Budget: Assigns an appropriate budget to the requisition line item.

5. Click Assign Budget on the page that appears, search and select an appropriate budget, and click Assign.

 Note

SAP Ariba Buying solutions list only the budget codes that are associated with the same purchasing unit
(PU) as that of the requisition along with the budget codes that are associated to all purchasing units and
budget codes that are not associated with any PUs.

The selected budget is now assigned to the requisition line item. The red exclamation mark corresponding
to the line item indicates that an action has been taken. The budget check status now reads as successful.

Managing Budgets in Buying Solutions from SAP Ariba

Budget Check Error Conditions PUBLIC 15
6. Click Save and approve the requisition.

Managing a Requisition When Multiple Budgets

Match
This procedure is applicable for sites enabled for budget checking within SAP Ariba Buying solutions.

Prerequisites

You must be a member of the Budget Approver group to manage a requisition with multiple budget matches.

A budget check fails if there are multiple budget codes that match the requisition line item accounting details.
When a budget check fails with an error message stating there is no unique budget code that matches the
requisition line item, the Budget Approver group is added to the approval flow automatically. A budget approver
must resolve the error by selecting an appropriate budget.

Procedure

1. On the dashboard, click the number of requisitions in the My Requisitions action tile.
2. On the Search Results page, click the requisition that failed the budget check.
3. On the Summary tab, click Edit Budget Details.
4. On the Budgets page, click Actions to choose from one of the following actions:

• Skip Budget Check: Overrides the budget check failure without assigning a budget and force approves the
requisition even though a budget is not associated with the line item.

 Note

This can be an option if no budgets are defined for that particular budget period.

• Assign Budget: Assigns an appropriate budget to the requisition line item.

• Budget from Multiple Matches: Assigns a budget to the requisition line item from the multiple matches
available.

 Note

The Actions link on the Budgets page is available only if you belong to the Budget Approver group.

5. On the Select From Multiple Matches page, select an appropriate budget and click Assign.
6. Click Save, then click Approve.

Managing Budgets in Buying Solutions from SAP Ariba

16 PUBLIC Budget Check Error Conditions
Managing a Requisition When Amount Exceeds Total
Available Amount
This procedure is applicable for sites enabled for budget checking within SAP Ariba Buying solutions.

Prerequisites

You must belong to the Budget Approver group to access the Budgets tab and manage requisitions with amounts
that exceed the total available amount.

A budget check fails when the requisition amount exceeds the total available amount for a budget period. When
a budget check fails with an error message stating that the associated budget does not have sufficient funds, the
Budget Approver group is added to the approval flow automatically.

The total available amount is calculated as the sum of the allocated amount and the tolerance percentage that is
specified for that budget.

 Note

Budget tolerance is calculated and applied on the total allocated amount for a budget. For example, if a budget
period has an allocated amount of $1000 and a tolerance of 10%, and a requisition consumes $800 from that
budget, the tolerance is not calculated on the remaining amount in the budget, but on the originally allocated
amount of $1000. So, when a user creates another requisition for the same budget code, the amount available
for consumption is $300 (the remaining $200 plus 10% of $1000).

Likewise, if a budget has an allocated amount of $100 and the tolerance limit has been set to 10%, the total
available amount for that budget will be $110 (100 + 10% of the allocated amount). If the requisition amount
exceeds $110, the budget check fails. As a Budget Approver, you can edit the requisition to skip the budget check
and approve the requisition, or assign a different budget.

Procedure

1. On the dashboard, click the number of requisitions in the My Requisitions action tile.
2. On the Search Results page, click the requisition that failed the budget check.
3. On the Summary tab, click Edit Budget Details.

The Budgets page appears.

4. On the page that appears, go to the Budgets tab. Click Actions to take the appropriate action. Here, you can
choose to do the following:

• Skip Budget Check: Overrides the budget check failure without assigning a budget and force approves the
requisition even though a budget is not associated with the line item.

 Note

This can be an option if no budgets are defined for that particular budget period.

Managing Budgets in Buying Solutions from SAP Ariba

Budget Check Error Conditions PUBLIC 17
 • Assign Budget: Assigns an appropriate budget to the requisition line item.
5. Click Assign Budget. In the pop-up window that appears, select an appropriate budget from the available list.
6. The page is refreshed with the new status and the budget check is successful. Click Save.
7. On the Approval Flow page that appears, click Approve.

Budget Check Warnings

A warning is not an error condition. Warnings are displayed to notify the user of a potential budget check failure in
the future if appropriate action is not taken in due course.

You can submit a requisition for approval even if budget checks in SAP Ariba Buying solutions results in a warning.
A typical scenario when the budget check is successful but results in a warning, is when the requisition amount is
nearing the budget threshold limit.

Thresholds are set when the budgets are configured. By default, a budget is configured to have a threshold
percentage of 80%. That is, if a budget has an allocated amount of $100, 80% of that allocated amount ($80) is
set as the threshold amount.

This means that when the requisition amount for that budget reaches $80, even though the budget check is
successful, a warning message is displayed. The Budget Approver group is automatically added to the approval
flow.

As a Budget Approver, you can choose to take appropriate action on such a requisition. This includes skipping the
budget check and approving the requisition, or denying the requisition.

Managing Requisitions with Budget Check Warnings

This procedure explains how to manage a requisition that has budget check warnings. This procedure is applicable
for sites enabled for budget checking within SAP Ariba Buying solutions.

Prerequisites

You must be a member of the Budget Approver group to manage requisitions with budget check warnings.

Context

When a requester or preparer creates and submits a requisition that has an amount which is nearing the threshold
value of the associated budget, a warning message is displayed. Though the budget check is successful, the
Budget Approver group is automatically added to the approval flow.

Managing Budgets in Buying Solutions from SAP Ariba

18 PUBLIC Budget Check Error Conditions
Procedure

1. On the dashboard, click the number of requisitions in the My Requisitions action tile.
2. On the Search Results page, click the requisition with a budget check warning.
3. On the Summary tab, click Edit Budget Details.

The Budgets page appears.

4. Click Actions and select either of the following:

• Skip Budget Check: Overrides the budget check failure without assigning a budget and force approves the
requisition even though a budget is not associated with the line item.

 Note

This can be an option if no budgets are defined for that particular budget period.

• Assign Budget: Assigns an appropriate budget to the requisition line item.

 Note

The Actions link on the Budgets page is available only if you belong to the Budget Approver group.

5. To approve the requisition without taking any action, click Approve on the requisition Summary tab.
6. To reject the requisition, click Deny.

Managing Budgets in Buying Solutions from SAP Ariba

Budget Check Error Conditions PUBLIC 19
Available Budget Amount Formula

The formula that is used to calculate the available amount in a budget when requisitions are submitted is:

Available Amount = Allocated Amount - (Reserved + Consumed) + Adjustment Amount + Tolerance

Managing Budgets in Buying Solutions from SAP Ariba

20 PUBLIC Available Budget Amount Formula
Budget Reports

Sites enabled for budget checks in SAP Ariba Buying solutions include a prepackaged report called Budget Analysis
Report. This report provides information on all available and active budgets in the buying solution. This includes all
transactions (requisitions that are submitted, approved, changed, canceled, and withdrawn) that have consumed
amounts from the corresponding budgets, and the total available amount for each budget.

Users associated with the Report Manager and Budget Manager groups can access this report.

Managing Budgets in Buying Solutions from SAP Ariba

Budget Reports PUBLIC 21
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SAP supports a culture of diversity and inclusion. Whenever possible, we use unbiased language in our documentation to refer to people of all cultures, ethnicities, genders,
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Managing Budgets in Buying Solutions from SAP Ariba

22 PUBLIC Important Disclaimers and Legal Information
Managing Budgets in Buying Solutions from SAP Ariba
Important Disclaimers and Legal Information PUBLIC 23
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