# Set Monthly Purchase Budgets (Branch+Supplier Wise)
**YouTube:** [How to Configure Monthly Purchase Budget by Branch and Supplier?](https://youtu.be/tZgVqzklT9M)
## How to Configure Monthly Purchase Budget by Branch and Supplier?
In this tutorial, you will learn how to **define monthly purchase budgets for each Branch + Supplier combination** in Logic ERP.\
This feature helps you **control procurement expenses and prevent overspending**.
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### Open Purchase Budget Setup
**To begin:**
* Go to the **Setup Module** from the main menu
* Navigate to **Party Wise Settings**
* Open **Set Monthly Purchase Budgets (Branch + Supplier Wise)**
This window allows you to define **Monthly Purchase Limits for Suppliers Per Branch**.
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### Select Branch & Supplier
* Choose the **Branch**
* Search and select the **Supplier**
Budget will apply specifically to this **Branch + Supplier combination**.
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### Define Budget Values
Enter the following details:
* **Budget Value** → Maximum allowed Purchase amount
* **Additional Budget Value** → Extra permissible limit beyond the main budget
The additional budget acts as a **buffer limit**.
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### Select Budget Month
* Choose the **Month** for which the budget is applicable
Budgets are defined on a **monthly basis**.
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### Save & Review Budget
* Click **Save** to apply the settings
* Click **Refresh** to view saved records
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### Validate Budget in Purchase Order
* Go to the **Purchase Order Window**
* Select:
* **Branch**
* **Supplier**
* Enter item details and proceed to **Save**
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### Budget Validation in Action
The system will automatically:
* Compare **PO Value vs Defined Budget**
**If Within Budget:**
* Purchase Order is saved successfully
**If Budget Exceeded:**
* System restricts the entry
* Displays message:
* *“PO value has exceeded the Budget Limit”*
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### How Budget Control Works
* Budget Limit = **Budget Value + Additional Budget**
* System continuously tracks monthly purchase value
* Restricts transactions beyond defined limits
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## Key Benefits of Purchase Budgeting
* Prevent overspending on procurement
* Control supplier-wise expenses
* Enforce financial discipline
* Real-time validation during PO creation
* Better budget planning and tracking
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### Final Outcome
You have successfully learned how to:
* Set **Branch + Supplier Wise Monthly Budgets**
* Define **Budget & Additional Limits**
* Validate **Purchase Orders against Budget**
Your system is now optimized for **controlled and efficient purchase management**.
