> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/party-wise-settings/set-monthly-purchase-budgets-branch+supplier-wise.md).
# 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**.
***
### 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**.
***
### Select Branch & Supplier
* Choose the **Branch**
* Search and select the **Supplier**
Budget will apply specifically to this **Branch + Supplier combination**.
***
### 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**.
***
### Select Budget Month
* Choose the **Month** for which the budget is applicable
Budgets are defined on a **monthly basis**.
***
### Save & Review Budget
* Click **Save** to apply the settings
* Click **Refresh** to view saved records
***
### Validate Budget in Purchase Order
* Go to the **Purchase Order Window**
* Select:
* **Branch**
* **Supplier**
* Enter item details and proceed to **Save**
***
### 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”*
***
### How Budget Control Works
* Budget Limit = **Budget Value + Additional Budget**
* System continuously tracks monthly purchase value
* Restricts transactions beyond defined limits
***
## 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
***
### 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**.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/party-wise-settings/set-monthly-purchase-budgets-branch+supplier-wise.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.