1 Reply Latest reply on Sep 1, 2011 8:29 AM by Jimmy Hakkim

    Using Budget Manager and Accounting For Tax and Freight

    Brian Levow Master

      We are using the Budget Check feature in Ariba P2P, and was wondering how anyone else using this feature is accounting for tax and freight amounts.  In other words, the total amount of the outbound purchase order is what debits against the budget.  However, the tax and freight that a vendor charges on their invoice will ultimately debit against the cost center in the ERP after being reconciled.  This creates a different amount of money actually debited against the cost center compared with the amount of money debited within the Budget Check feature.  How is anyone handling this discrepancy?

        • Re: Using Budget Manager and Accounting For Tax and Freight
          Jimmy Hakkim Journeyman

          I am currently working at a customer that has this exact scenario.

           

          Since the Budget check does not check budgets on the invoice, they have decided to take the OK2Pay into their ERP and treat the tax and freight as external transactions to P2P.  Therefore, when the next feed of budget information is loaded into P2P, the available amount to spend reflects the tax and freight as external P2P spend and the available amount in P2P is updated accordingly.

           

          I'm not sure how you setup your budgets in your ERP, but if you earmark part of your budget specifically for tax and freight, then you can consider only loading the available "PO" budget into P2P to make sure you don't order over what you allocated.