Channel Budget

Owned by Megan Stanage (Unlicensed)
Nov 01, 2023
5 min read

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 FastTab

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 FastTab

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 FastTab

Defines rules for dynamic budgets that adjust according to inbound demand.

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 rule for the budget.
Dynamic action

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.
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.
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.

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.

Buttons

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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