Analytical Budget Structure in Sage X3

In Sage X3 the budget may be set up with the configuration desired in unlimited scenarios based on a specific company or financial site. Each analytical budget must be associated with a chart of accounts with dimensions and the account core model must have an analytical ledger reference. Budget controls have relevance on the completion of transactions as it concerns the overall resources of the company.

For early-stage companies such as the company used in previous examples, the ability to use in-system budgets is a great control over scarce resources and measuring efficiencies in operations.

The first step in the set up of analytical budgets in Sage X3 is to ensure that the chart of accounts has dimensions associated with the accounts. The following file path for the chart of accounts to be used will show the flag for analytical tracking that is needed to be turned on by checking the box as seen below.

All > Setup > Organization structure > Chart of accounts

The ledger must also be verified to have analytical tracking turned on by checking the box. The file path below will display the flag under the type of accounting section on the ledger set up as follows:

All > Setup > Organization structure > Ledgers

The user will also ensure that the budget flag and commitment flag are turned on as well.

The next step is to verify that the account core model in Sage X3 is referencing a ledger that has the analytical dimensions flag turned on. The file path below will display the flag under the identification section on the account core model set up as follows:

All > Setup > Organization structure > Account core models

As seen above the main general ledger agrees with the main analytical ledger. In this case both the general ledger and analytical ledgers are set to legal.

Parameter values in Sage X3, can be set for budget items along the path below:

All > Setup > General values > Parameter values

On the left-hand menu, the user will select the budget dropdown, company dropdown and the company of interest which is NA10 in this case.

The user will be able to review the budget controls by selecting the action card which is denoted by three vertical dots in Sage X3 and is located to the left of the group column (the first column) as seen above. Detail will be select to set specific values on the controls.

The parameter values can be set to be controlled by amount, percentage tolerance for expenditures or holding/according to operator for commitments.

The actions typical of the control features or control points in the process are the three listed below:

  • Order request – prior to the purchase order, the request for resources are entered by line staff and reviewed by an approver
  • Purchase invoice – following purchase order documenting what was purchased and specific details about the goods or service
  • Commitment – an obligation of the company based on contracts in place

Parameter values in Sage X3 determine whether a warning message is displayed with or without a control.

In the example of the newly public company, the budgetary controls and process and procedure are effective ways to assist with the implementation of a procure-to-pay program. This program is certainly more advanced and involved than this walkthrough but is the early stage assistance with the controls on purchases and eventually inventory additions.

James Hurren

James Hurren

James Hurren is a Senior Financial Consultant at Panni. He brings with him expertise in ERP design and implementation, IT Initiatives and enhancements, Strategic Leadership, Financial Reporting & Analysis, IFRS & TSX Compliance, Debt and Equity Financing, Budget Preparation Process Optimization.

Transforming businesses since 2009

For over a decade, Panni has helped companies transform their businesses to lead, innovate and be profitable. With the right combination of technology and experienced developers and consultants, we help companies with Change Management to achieve the organizational objectives. We believe in long-term relationships with our clients and provide top-notch support with fast turnaround times.