You can create different types of budgets to predict your company's financial needs for a specific budget period. Use the form to create the budget models and submodels to define the structure of your ledger budgets. After you have defined model and submodel structures, you can create several budgets, create simulations, and compare budget results.

Zero-based budgeting

This is a method of budgeting where all expenditures must be justified each period, rather than only explaining the amounts requested in excess of budget for the previous period.

You can create budget lines for ledger accounts without referring to current balances or the results of the previous period. For each line that you create in the form, you can select the budget model, the ledger account, the start of the period, and the currency. You also can enter an amount or you can enter a quantity and price to create an amount on the tab.

To create budget lines for each budget year period for the ledger account, you can use the methods in the section. In the field, select to make the , , and fields available. Or, you can select in the field to be able to select from the period allocation keys that you create in the form. You can create period allocation keys for each ledger account, if necessary. For more information, see the Period allocation key (form).

To verify that all the ledger accounts are represented in the ledger budget, you can create budget lines directly from each ledger account in the chart of accounts. To create budget lines, click , select a ledger account, and click .

Historical budgeting

This is a method of budgeting where you use recent historical transactions from the ledger accounts to create budget lines for the account. To enter transactions for each ledger account in the chart of accounts, click > . Enter information in the form, including a percentage increase for the budget amounts, if appropriate.

When you click the OKbutton, one line for each date that transactions were posted to the ledger account is displayed. To see the transactions that are created, click .

Use and update the ledger budgets

After you've created basic budget lines, you can use allocation terms or settlement terms to adjust and update the budget lines over time or use the budget lines for the ledger account for the cash flow forecast. You also can update the budget transactions with a percentage increase or decrease as the period progresses, or indicate a loss of sales or debt that cannot be collected for an account in the budget.

You can also complete the following procedures in the form.

  • To specify how the budget transactions for the ledger account should be included in the cash flow forecasts for the ledger account, click > . For more information, see Set up cash flow forecasts (form).

  • To use the ledger account budget to set up budget transactions for other accounts or dimensions, click > , and generate the budget transactions. For example, you could designate a part of the ledger budget amounts to a particular dimension value by setting up allocation terms. For more information, see Allocation (form).

  • To transfer part of the balance of the budget account to a different account or create a budget amount for an account that is dependent on the balance of the selected account, click > .

At any time, you can review the budget that you have created for each ledger account or print a budget report.

Revising budgets

You can set up budget revisions in the form. Each budget revision will be assigned a unique revision ID, which allows you to view the original budget amounts and the updated amounts after you've made the changes.

To track changes to a budget, you must select the check box in the form for that budget.

You can delete a budget revision only if budget lines are not assigned to the revision ID. You can delete a budget revision line if the check box in the form for that budget is not selected, whether or not the budget line was saved with a budget revision.

You cannot delete a budget revision line if the check box in the form for that budget is selected.

Refer to the following topics for additional information about budgets.



About budget models

Provides conceptual information about budget models.

Create and use a budget for expected sales: Example

Provides procedural information and an example of how to create and use a budget for expected sales.

Budgeting on transaction accounts and total accounts

Provides conceptual information about budgeting on transaction accounts and total accounts.

Set up a budget revision ID

Provides procedural information about how to define a budget revision.