How to Set Up Budget Control in Dynamics 365 Finance
Budget Control in D365 Finance allows organizations to enforce spending discipline by validating transactions against defined budgets. Here are the steps to set it up.
1. Navigate to Setup
Go to: Budgeting > Setup > Budget control configuration.
2. General Settings
- –Name – Assign a clear name (e.g., “FY2025 Control”).
- –Time span – Define the period (commonly the fiscal year).
- –Active – Enable or disable budget control.
3. Define Dimensions
Select the financial dimensions to apply budget control against, such as:
- -Main account
- -Department
- -Cost center
- -Project
If Department + Cost Center are selected, every transaction is validated against that combined budget.
4. Approval Rules
Determine the actions when a budget is exceeded:
- –Block the transaction completely
- –Route to approvers (specific user groups)
- –Escalate to managers
5. Documents & Journals
Specify which transactions should be included in budget checks, such as:
- -Purchase orders
- -Vendor invoices
- -Expense journals
- -General journals
It is best practice to include unposted documents (e.g., open POs) to ensure commitments are accurately reflected.
6. Activate
Once the configuration is complete, activate Budget Control. From this point, all relevant transactions will be validated against the assigned budgets.
Example
- 1. IT department budget: $50,000
- 2. Purchase order of $10,000 → Approved if funds are available
- 3. Purchase order of $45,000 → Triggers a budget check and is either blocked or routed for approval
To conclude, budget Control in Dynamics 365 Finance is straightforward to configure but highly effective in preventing overspending. With the right setup, organizations can gain real-time visibility and strengthen financial governance.
For Finance consultants, system admins requiring guidance with setup or optimization, CloudFronts can help you design the right Budget Control configuration for your business. Get in touch with CloudFronts Technologies at transform@cloudfronts.com for assistance.
