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Steps

1

Open the award's approval workflow

Edit the award and go to its multi-level approval configuration.
2

Choose the budget deduction level

Configure at which approval level the budget is deducted — set it to L1 or L2 to give those managers real budget ownership instead of only final-approval deduction.
3

Confirm the wallet

The points are deducted from the originating wallet at the level you set, within that manager’s wallet limits.
4

Rely on auto-revert

If a nomination is declined after budget deduction, points automatically return to the originating wallet — no manual reconciliation needed.