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Channel Budget

Channel Budget

Owned by Megan Stanage (Unlicensed)
Jan 13, 2025

Global order promising > Setup > Demand Channel Template > Channel budget button

The Channel Budget form allows you to create budgets for channels.

Sustainability: Stabilize Inventory

Limit the amount of inventory customers can order to avoid ordering either too much or too often.

See Sustainability with Supply Chain Cloud for more information.

These budgets help define how much product inventory should be reserved within the channel.

Once a channel budget is reached for a given timeframe and scope, reservation will not be allowed.


 Header

FIELDDESCRIPTION
Budget item group ID

Unique budget item group identifier for the channel. 

This defines which items are part of this budget in the channel.

DescriptionDescription of the channel budget.
Channel IDThe budget record's channel.
 Scope

Defines the budget scope. 

The budget can be wide open for the whole channel or can be managed at more specific levels.

FIELDDESCRIPTION
Budget scope

The level at which the budget will be tracked.

  • Total channel: Scope is for the channel overall (e.g., this channel gets 200 of an item).
  • Customer: Scope is at a customer level (e.g., each customer gets 200 of an item).
  • Sales representative: Scope is at the sales representative level.
  • Customer group pool: Scope is for a group of customers (see Customer Budget Group).
Dimension number

The internal dimension number for the designated site/warehouse.

If set, only demand reserving against the defined site and warehouse will be applied to the budget.

SiteThe site for this budget (if desired).
WarehouseThe warehouse for this budget (if desired).
 Details

Defines the budget amount and controls how the channel budget record behaves.

FIELDDESCRIPTION
Budget quantity

The number of units allowed to be reserved by this channel budget record.

Note

This option is only available when budgeting by quantity.

Unit of Measure

The unit of measure for the budget quantity.

If this is not set, the budget quantity is assumed to be defined in the inventory unit.

Note

This option is only available when budgeting by quantity.

Unlimited budget

Turn on this toggle to allow unlimited reservations.

Exceed budget action

Controls what happens when a request exceeds the budget:

  • Prevent exceed: A reservation of exceeding quantity is not allowed.
  • Allow exceed with permission: Create a budget exception record that can be acted upon to allow reservation of quantity exceeding the budget.
Prevent partial order line reservationTurn on this toggle to prevent an order line from being partially reserved if the total demand line amount exceeds the budget.
Recurrence

Determines the length of the budget and when it resets.

Example

The budget could reset at the beginning of every month or every 15 days.

Budget optionSelect whether the budget is limited by Quantity or Percentage of available inventory.
Budget percentage

Enter the percentage of available inventory allowed to be consumed for this budget during each reservation run.

Note

This option is only available when budgeting by percentage.

Rounding behavior

Select whether the quantity available to budget is rounded up or down when multiplying the total available quantity by the budget percentage.

Note

This option is only available when budgeting by percentage.

 Dynamic Budget

Defines rules for dynamic budgets that adjust according to on-hand inventory.

You can also include inbound inventory according to lead days, if desired.

Inbound inventory is any purchase or transfer orders inbound to the corresponding budget site and warehouse.

Important

This feature only works with quantity-based budgets; you must have the Budget option set to Quantity on the Details FastTab.

FIELDDESCRIPTION
EnabledTurn on this toggle to use this dynamic action for the budget.
Dynamic action

Important

Only one action can be active at a time so make sure the thresholds for your actions do not overlap.

Select the dynamic action to be triggered:

  • Per scope increase: If the inbound threshold and lead days qualifications are both met, increase the budgets according to the value set in the Scope change value field.
  • Per scope decrease: If the inbound threshold and lead days qualifications are both met, decrease the budgets according to the value set in the Scope change value field.
  • Require Budget Approval: If the threshold is exceeded, update Exceed budget action to Allow exceed with permission.
  • Unlimited budget: If the threshold is exceeded, turn on the Unlimited Budget toggle.
  • Prevent budget from exceeding: If the threshold is exceeded, update Exceed budget action to Prevent exceed.
  • Reduce budget to zero: If the threshold is exceeded, update Budget Quantity to zero.

  • Active validations: Select a Demand validation policy group ID to run.

    Important

    This policy is run in addition to any policies already active on the channel.

Description

Enter a description for the budget.

Note

You can use this field to organize budgets if you have a sequence with multiple rules.

Demand validation policy group ID

Select the Demand Validation Policy Group for this budget.

Note

This field is only used with the Active validations option.

Demand validation policy active

Indicates whether the Demand Validation Policy is active as a result of the threshold being exceeded.

Note

This field is only used with the Active validations option.

Lower threshold

If the sum total inbound inventory is below this value, the dynamic action is executed.

Upper threshold

If the sum total inbound inventory is above this value, the dynamic action is executed.

Threshold lead daysSet to the number of days in advance the logic should look to sum inbound inventory.
Include inbound receipts

Turn on this toggle to use inbound receipts when calculating the threshold evaluation.

Example

The upper threshold is set to 100 units and the available inventory for reservation for that item is 90.

  • Include inbound receipts is turned off: The budget action does not trigger because the threshold is not exceeded,
  • Include inbound receipts is turned on and over the next 10 days the inbound receipts are expected to be 15: The budget action triggers because the sum of available inventory and inbound receipts over the next 10 days exceeds the threshold.
Scope change type

Select the scope change type:

  • Quantity: Budget actions function as normal.

  • Percentage: The scope change should become a percentage.

    Example

    The Budget quantity is set to 100, the Dynamic action is set to Per Scope Decrease, and the Scope change value is set to .05.

    If the threshold for the rule is met, the budget decreases 5% to 95 units.

Scope change value

Set to the number you wish to increase or decrease the budget by, depending on your selection in the Dynamic action field.

Rounding behavior

Select whether the inventory available is rounded up or down if the percentage is not a whole number.

Note

This option is only available when budgeting by percentage.

Example

The budget for item A0001 is set to scope Customer with quantity of 10.

240 units of A0001 are scheduled to arrive in 5 days.

A dynamic action is created:

  • Dynamic action: Per Scope Increase

  • Upper threshold: 200

  • Threshold lead days: 10

  • Scope change value: 5

When the Dynamic Budget job is run, the budget increases from 10 to 15.

This means that each customer is allowed to reserve 5 more units as a result of the increase in A0001 inventory.

 Ribbon Options

BUTTONDESCRIPTION
Recurrence

Click this button to open a flyout window that allows you to configure the Recurrence field for the channel budget record.

Override budget per customer group

Click this button to open the Customer Budget Group Channel Budget form, which allows you to configure budget quantities for customer budget groups separate from the shared "pool" budget (see Customer Budget Group).

  • Select the checkbox in the Unlimited budget column to prevent a customer budget group from being stopped from reservation.
  • Select the checkbox in the Utilize pool budget on exceed column to allow the customer budget group to consume its individual overridden budget and then start to consume the shared "pool" budget once the individual budget override quantity is hit.

Budget trackingClick this button to open Budget Tracking, where you can view current budget tracking records for the current channel budget record.
Budget configuration history

Click this button to open Budget Configuration History, where you can view budget configuration changes (e.g., who changed it, what numbers changed, etc.).

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