In this blog I’m going to discuss the setup of basic budgeting in MS Dynamics AX 2012. In my next blogs I will discuss about Budget Control, Budget register entries and Budgeting for Fixed assets

First setup the parameters for budgeting

Go to>Budgeting>Setup>Budget Parameters


In this form select a Period allocation key to be used for allocation of budget amounts in the cash flow forecast

Check the Use rules for budget transfers if you want to enable budget transfers

For Revenue budget options select whether to display any warnings if any revenue budget goes below zero

Select the time period for budget balances to aggregate

Select whether to create processed budget entries from the Project, Fixed Assets, Demand forecast and Supply Forecast

Select a budget Journal and close the form

(A budget journal should have a type of Budget)

Go to>Budgeting>Setup>Basic Budgeting>Dimensions for budgeting

Select the dimension for the use of budgeting from the Chart of Accounts Dimension list and then click (<)


Now go to>Setup>Basic Budgeting>Budget Models

In this form users can create multiple budget models or single according to the needs, you can also make sub models and assign them to a budget model, for example a budget manager might create a budget for whole organization and then assign sub models to it for departmental budgets.

Select Stopped check box if you want to prevent users to make any changes once the budget has been made

Select Cash flow Forecast check box if you want to use budgets based on this model to be included in cash flow forecast


Now go to>Basic Budgeting>Budget Codes

Here setup codes for budgeting, only one code can be set as default for a budget type for example there can only be one default code for budget type of Original budget


For each budget code you can assign workflow and reason code if required


Above are types of budget codes available to categorize budgets

Optionally you can set Budget Allocation terms and Budget transfer rules

Go to>Setup>Basic budgeting>Budget Allocation terms


Setup Budget allocation terms to distribute budget amounts across financial dimension values

Go to> Setup>Basic budgeting>Budget Transfer rules


Setup budget transfer rules to define the rules for transfer of budget between financial dimension values.

The Basic budgeting setup have been completed.

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