Deducting amounts from budgets via contract lines
There are two ways to deduct amounts from budgets using contract lines:
1. Based on the combination of project and cost group: this method is typically used for capital projects.
◦ The contract line must reference a valid combination of project and cost group that is linked to an open budget.
◦ This link allows the contractual commitment to be booked on the corresponding budget.
2. Based on a direct link to a budget definition: this approach is often used for property-related budgets.
◦ The contract line is linked directly to a budget definition, which updates the related budget.
 | In both cases, the budget must be in the Open status for amounts to be booked. When a contract line is linked in either way, journal entries are generated to reflect the commitment, and the budget is updated accordingly. |
To ensure that amounts are deducted from a budget, the application manager must first configure the Update budgets on basis of budget definition? setting in Field definer . See the below procedure.
Procedure
1. Go to Field definer > Business objects.
2. Select Contracts and set the status to Under construction.
3. On the action panel, click Business object settings and set Update budgets on basis of budget definition? to Yes.