Set Monthly Purchase Budgets (Branch+Supplier Wise)

YouTube: How to Configure Monthly Purchase Budget by Branch and Supplier?

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.