The envelopes entry screen is used to deduce from the envelope amount, an amount used as a reserve. This reserve can be created to account for the possible uncertainties of the prevision: Completion date, expected amount, etc. The reserve reduces the available envelope amount for its split into budgets.
Off budget Envelope:
While creating budget envelope, it is possible to indicate that this envelope must be created without amount. This option is carried out by ticking check box “Off budget” in the envelope screen. It is used to commit expenses on envelopes, budgets and budget lines whose planned amount is unknown upon budget completion, or that are not to be indicated. The evolution of these envelope types follow the process described below:
- By ticking field “Off budget” in the envelope entry screen authorizes the creation of the envelope, its budgets and budget lines with no amount. The amount entry is prohibited.
- The envelopes, budgets and lines which are “Off budget” must be approved in order to enter purchase expenses. This approval results in fixing the approved envelope, budget and null line amount.
- The purchase request, order and invoice entry triggers the application of a negative balance to the lines, budget and envelope. The overrun controls implemented in the operating budget management are not applied.
- When the envelope, budget and line amounts are known, they can be loaded via revisions. In order to carry out a revision, the envelop and the budget must have been approved previously if only the budget lines have been approved. After revision, a reserve can be created on these envelopes.
- A utility that can be accessed via menu “Off budget cancellation” is used to perform the cancellation of status “Off budget” when revisions have been carried out.
- If this indicator is kept, no overrun control is carried out in order or purchase request entry.
- If this indicator is canceled, budgets, envelopes and budget lines follow the management rules implemented in the application on overruns.
Navigate to: > Operating budget > Budget management > budget envelopes
Here we have created a envelope “ENVA-21-00003” and have tick the Off budget check box. Once we tick the off budget the amount field will be disabled. Refer the below screenshot.
Cancel off-budget:
This function makes it possible to cancel the status “Off-budget” of an envelop created without any amount. This function can be executed only on “Off-budget” envelops that have been reviewed.
As long as these envelops are labeled “Off-budget”, it is possible to enter expenses without any overrun control.
Once this status is cancelled, these envelops and the overrun control are managed in the same way as the other envelopes, budgets and budget lines.
This blog help us to know the concept of Off budget envelope in sage x3.