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== Overview  ==
 
== Overview  ==
  
Prior to creating a new budget you will need to create a new[[Budget definition]]  
+
Prior to creating a new budget you will need to create a new [[Budget definition|'''Budget Definition''']]  
  
 
A budget is a tool for creating a forecast for a business. Within a budget you can predict the outcome for specific areas of the company and track those predictions against actuals for any time period you choose. For more about time periods within budget refer to the new budget definitions. Budgets can be created on an account by account basis.  
 
A budget is a tool for creating a forecast for a business. Within a budget you can predict the outcome for specific areas of the company and track those predictions against actuals for any time period you choose. For more about time periods within budget refer to the new budget definitions. Budgets can be created on an account by account basis.  
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'''How to Create a New Budget'''  
 
'''How to Create a New Budget'''  
  
*Select the Budget button displayed within the Budget Tab  
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*Select the '''Budget''' button displayed within the Budget Tab  
*The New Budget screen appears  
+
*The '''New  Budget '''screen appears  
*The Budget name field is where you can trigger a drop down of all your current Budget definitions  
+
*The '''Budget Name '''field is where you can trigger a drop down of all your current Budget definitions  
*The start Date field refers to the date at which this budget becomes effective  
+
*The '''Start Date''' field refers to the date at which this Budget becomes effective  
*The end date field refers to the date at which this budget ceases to be in effect.  
+
*The '''End Date''' field refers to the date at which this Budget ceases to be in effect.  
*The interval field will display the interval chosen for this specific budget based on what was loaded in during the
+
*The '''Interval''' field will display the interval chosen for this specific Budget based on what was loaded in during the
  
budget definitions  
+
Budget definitions  
  
*The period refers to the increment of time that you have selected to build this budget on.
+
*The '''Period''' refers to the increment of time that you have selected to build this budget on.
  
For example - if you have chosen to set up a budget on a monthly basis and the period reads '1' then you are about to set up the budget for the first month of your series of months.  
+
'''E.G '''- if you have chosen to set up a Budget on a monthly basis and the period reads ''''1'''' then you are about to set up the budget for the first month of your series of months.  
  
*If you had selected that this will be a quarterly budget in your budget definitions then this would be the first quarter
+
*If you had selected that this will be a '''Quarterly Budget '''in your Budget definitions then this would be the first quarter&nbsp; <br>
  
 
that you are about to set up.  
 
that you are about to set up.  
  
*Budgets are set on an account by account basis. You may choose to set up a budget that relates to one account
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*Budgets are set on an account by account basis. You may choose to set up a Budget that relates to one account
  
only - for example you may choose to setup a budget that shows figures purely for the income generated from sales.  
+
only - for example you may choose to setup a Budget that shows figures purely for the income generated from sales.  
  
*More commonly - a budget reports against multiple accounts. For example in addition to the budgeted figures
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*More commonly - a Budget reports against multiple accounts. For example in addition to the budgeted figures
  
 
showing income generated from sales, you may also wish to report on the expenses that were incurred in generating those sales and how close to an anticipated budget you are.  
 
showing income generated from sales, you may also wish to report on the expenses that were incurred in generating those sales and how close to an anticipated budget you are.  
  
*Select the account or accounts you wish to set up a budget for from the drop down menu.  
+
*Select the '''Account''' or'''Accounts''' you wish to set up a Budget for from the drop down menu.  
 
*To choose multiple accounts select the down arrow key to open a new line
 
*To choose multiple accounts select the down arrow key to open a new line
  
*The tick box column labeled 'for date', if selected will show the start date of the budget in the budget date column.
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*The tick box column labeled ''''For Date'''', if selected will show the start date of the Budget in the budget date column.
  
This will also you to choose you own start date for this particular budget.  
+
This will also allow you to choose your own start date for this particular Budget.  
  
*If this option 'for date' is NOT selected - then the setup for the budget will be defaulted back to the date range that
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*If this option ''''For Date'''' is '''Not''' selected - then the setup for the Budget will be defaulted back to the date range that
  
you have initially selected through the budget definition  
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you have initially selected through the Budget definition  
  
*For more information on how to change these dates refer to date picker in global features
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*For more information on how to change these dates refer to date picker in [[Global features]]
  
*In your budget definition there is the ability to select via a tick box which departments, or classes this particular
+
*In your Budget definition there is the ability to select via a tick box which departments, or classes this particular
  
budget was referring to. As an example - you may be a national company, and wish to set individual budgets for all of the different branches of your company. Each one has a budget for sales figures, expenses etc. by selecting the departments within your budget definition, you are able to create these individual forecasts or budgets.  
+
budget was referring to. As an example - you may be a national company, and wish to set individual budgets for all of the different branches of your company. Each one has a Budget for sales figures, expenses etc. by selecting the departments within your budget definition, you are able to create these individual forecasts or budgets.  
  
*The all classes columns will always appear - this will give you a total. For example - if you had set up budgets
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*The All Classes columns will always appear - this will give you a total. For example - if you had set up budgets
  
for sales income across three departments, each for $/£1000 in this month - the figure that will appear in the 'all classes' column will be $/£3,000.  
+
for sales income across three departments, each for $/£1000 in this month - the figure that will appear in the ''''All Classes'''' column will be $/£3,000.  
  
 
*If you are creating a budget for multiple cost centres (departments or classes) you may find that the screen does
 
*If you are creating a budget for multiple cost centres (departments or classes) you may find that the screen does
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not fit all of them side by side. In this case it makes it difficult to remember, as you are filling in the details - exactly which account is on which line.  
 
not fit all of them side by side. In this case it makes it difficult to remember, as you are filling in the details - exactly which account is on which line.  
  
*In this circumstance - you may choose to tick the box labeled 'freeze account name column'. This will have the
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*In this circumstance - you may choose to tick the box labeled ''''Freeze Account Name Column''''. This will have the
  
 
effect of always displaying the account name column - enabling you to scroll to the right - across all of your departments whilst still maintaining the account name column for easy reference.  
 
effect of always displaying the account name column - enabling you to scroll to the right - across all of your departments whilst still maintaining the account name column for easy reference.  
  
The aggressive and conservative columns are the labels entered in the budget definition.  
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The aggressive and conservative columns are the labels entered in the Budget definition.  
  
*These labels allow you enter varying boundaries for the budget figures. They are not both compulsory - you may
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*These labels allow you enter varying boundaries for the Budget figures. They are not both compulsory - you may
  
 
choose to display only one figure.  
 
choose to display only one figure.  
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*Should you choose to display both, you are able to have these flexible boundaries. For example - you may
 
*Should you choose to display both, you are able to have these flexible boundaries. For example - you may
  
choose as you are entering figures for your sales income that you need to have an aggressive and conservative figure. You may select that if the sales force are aggressive this month (or other time period that you have defined in your budget definition) that they bring in $/£10,000. But conservatively they may only bring in $/£9,000.  
+
choose as you are entering figures for your sales income that you need to have an aggressive and conservative figure. You may select that if the sales force are aggressive this month (or other time period that you have defined in your Budget definition) that they bring in $/£10,000. But conservatively they may only bring in $/£9,000.  
  
The same applies to expenses or any other accounts you set up within the budget.  
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*The same applies to expenses or any other accounts you set up within the Budget.  
 
+
*For example the expense of advertising that we determine might come in conservatively at $/£1000 for this time period
*For example the expense of advertising we determine might come in conservatively at $/£1000 for this time period
+
  
 
(month). However if we are really aggressive at getting these totals down - we may be able to come in at $/£800  
 
(month). However if we are really aggressive at getting these totals down - we may be able to come in at $/£800  
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we get aggressive in bringing this figure down - we may be able to come in at $/£1350.  
 
we get aggressive in bringing this figure down - we may be able to come in at $/£1350.  
  
*So therefore, aggressive needs to be high for income and low for expenses. Conservative needs to be low for
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*So therefore, '''Aggressive''' needs to be high for income and low for expenses. '''Conservative''' needs to be low for
  
 
income and high for expenses. good and bad of aggressive and conservative are reversed as we go through income and expense accounts.  
 
income and high for expenses. good and bad of aggressive and conservative are reversed as we go through income and expense accounts.  
  
*Aggressive income - it means more will come in. Aggressive expenses meaning that less goes out.
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*'''Aggressive''' '''income''' - it means more will come in. Aggressive expenses meaning that less goes out.
  
*Conservative income - it means less money coming in. Conservative expenses - it means more money going out.
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*'''Conservative''' '''income''' - it means less money coming in.'''Conservative expenses''' - it means more money going out.
  
 
*At this stage we have created entries for only one period
 
*At this stage we have created entries for only one period
  
*In this example we have created budget entries for the first month of a 12 month budget reporting period.
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*In this example we have created Budget entries for the first month of a 12 month Budget reporting period.
  
*We can now translate this information to all other periods (the other 11 months) using the 'copy to all periods'
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*We can now translate this information to all other periods (the other 11 months) using the ''''copy to all periods''''
  
 
button.  
 
button.  
  
*This will open the budget variation screen, specifically for the budget you are currently working on. (shown in the
+
*This will open the '''Budget Variation''' screen, specifically for the budget you are currently working on. (shown in the
  
 
highlighted circle)  
 
highlighted circle)  
  
This feature will allow you to increase or decrease the entries in upcoming time periods by either percentage or dollar amounts.  
+
*This feature will allow you to increase or decrease the entries in upcoming time periods by either percentage or dollar amounts.  
 
+
 
*If you don't want to increase or decrease the figures - but maintain the same level across all periods, simply click
 
*If you don't want to increase or decrease the figures - but maintain the same level across all periods, simply click
  
on the copy button without entering a variation amount.  
+
on the '''Copy''' button without entering a variation amount.  
  
 
*For example you may choose that you are going to increase sales by 10 percent each month for the next 12
 
*For example you may choose that you are going to increase sales by 10 percent each month for the next 12
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months.  
 
months.  
  
*As you hit 'copy' the program will then perform the calculation of a ten percent (compounding) increase and create
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*As you hit ''''Copy'''' the program will then perform the calculation of a ten percent (compounding) increase and create
  
11 more entries for the budget title (in this demonstration the title is 'budget example for manual')
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11 more entries for the Budget title. <br>
  
IT IS IMPORTANT To Note: that the increase or decrease that has been selected will be performed for all accounts that this budget refers to.  
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'''N.B'''. The increase or decrease that has been selected will be performed for all accounts that this budget refers to.  
  
*Once the calculation has been performed, the budget list screen will open automatically showing the entries that
+
<br>
  
have been created by the program.
+
For more information regarding the functionallity of lists see [[Global Features|Global Features]]
  
For more information regarding the functionality of lists see global features
+
<br>
 +
 
 +
*Once the calculation has been performed, the '''budget list '''screen will open automatically showing the entries that
 +
 
 +
have been created by the program.
  
*You can see the name of the budget and description  
+
*You can see the name of the Budget and description  
 
*The names of the two variation columns (in this example aggressive and conservative)  
 
*The names of the two variation columns (in this example aggressive and conservative)  
*The budget number showing the entries created for the time periods set up in the budget definitions. In this example
+
*The Budget number showing the entries created for the time periods set up in the Budget definitions. In this example
  
 
12 entries - for twelve months  
 
12 entries - for twelve months  
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definition)  
 
definition)  
  
*This allows you the flexibility to keep your budget up-to-date, with any known or unusual circumstances. For
+
*This allows you the flexibility to keep your Budget up-to-date, with any known or unusual circumstances. For
  
 
example you may know that in this particular month, you always have a quiet period, and therefore the sales figures will be down and so then will the expenses. You can change the figures by clicking into the field you wish to change and then selecting the save button.  
 
example you may know that in this particular month, you always have a quiet period, and therefore the sales figures will be down and so then will the expenses. You can change the figures by clicking into the field you wish to change and then selecting the save button.  
  
*The show jobs tick box down the bottom left hand corner of the budget screen gives you the ability to create
+
*The '''show jobs''' tick box down the bottom left hand corner of the Budget screen gives you the ability to create
  
individual budgets for individual jobs that the company has on the go. This function MUST be selected at the beginning of creating a budget for a job that you have on the go.  
+
individual budgets for individual jobs that the company has on the go. This function '''MUST''' be selected at the beginning of creating a budget for a job that you have on the go.  
  
 
*If this tick box is selected - ie you are creating a budget for a specific job. The job name column will appear
 
*If this tick box is selected - ie you are creating a budget for a specific job. The job name column will appear
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allowing you to choose the job name or number from the list.  
 
allowing you to choose the job name or number from the list.  
  
*You can then set the budget for the job by following the normal steps for creating a budget
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*You can then set the Budget for the job by following the normal steps for creating a budget
  
IMPORTANT: ONCE THE BUDGET IS CREATED - CHANGES CAN NOT BE MADE TO THE BUDGET THROUGH THE BUDGET BUTTON. ALL CHANGES MUST BE MADE THROUGH THE BUDGET VARIATION BUTTON.  
+
IMPORTANT: ONCE THE BUDGET IS CREATED - CHANGES CAN NOT BE MADE TO THE BUDGET THROUGH THE '''BUDGET BUTTON'''. ALL CHANGES MUST BE MADE THROUGH THE '''BUDGET VARIATION BUTTON'''.  
  
If a budget is no longer relevant - all references to that particular budget can be made inactive through the budget definition list. Simply select the budget that is finished by double clicking the budget required from this list, and removing the tick from the active box (bottom right hand corner) by clicking on the tick once with the mouse.
+
If a Budget is no longer relevant - all references to that particular budget can be made inactive through the budget definition list. Simply select the budget that is finished by double clicking the budget required from this list, and removing the tick from the active box (bottom right hand corner) by clicking on the tick once with the mouse.

Latest revision as of 17:26, 22 June 2011

Overview

Prior to creating a new budget you will need to create a new Budget Definition

A budget is a tool for creating a forecast for a business. Within a budget you can predict the outcome for specific areas of the company and track those predictions against actuals for any time period you choose. For more about time periods within budget refer to the new budget definitions. Budgets can be created on an account by account basis.

How to Create a New Budget

  • Select the Budget button displayed within the Budget Tab
  • The New  Budget screen appears
  • The Budget Name field is where you can trigger a drop down of all your current Budget definitions
  • The Start Date field refers to the date at which this Budget becomes effective
  • The End Date field refers to the date at which this Budget ceases to be in effect.
  • The Interval field will display the interval chosen for this specific Budget based on what was loaded in during the

Budget definitions

  • The Period refers to the increment of time that you have selected to build this budget on.

E.G - if you have chosen to set up a Budget on a monthly basis and the period reads '1' then you are about to set up the budget for the first month of your series of months.

  • If you had selected that this will be a Quarterly Budget in your Budget definitions then this would be the first quarter 

that you are about to set up.

  • Budgets are set on an account by account basis. You may choose to set up a Budget that relates to one account

only - for example you may choose to setup a Budget that shows figures purely for the income generated from sales.

  • More commonly - a Budget reports against multiple accounts. For example in addition to the budgeted figures

showing income generated from sales, you may also wish to report on the expenses that were incurred in generating those sales and how close to an anticipated budget you are.

  • Select the Account orAccounts you wish to set up a Budget for from the drop down menu.
  • To choose multiple accounts select the down arrow key to open a new line
  • The tick box column labeled 'For Date', if selected will show the start date of the Budget in the budget date column.

This will also allow you to choose your own start date for this particular Budget.

  • If this option 'For Date' is Not selected - then the setup for the Budget will be defaulted back to the date range that

you have initially selected through the Budget definition

  • For more information on how to change these dates refer to date picker in Global features
  • In your Budget definition there is the ability to select via a tick box which departments, or classes this particular

budget was referring to. As an example - you may be a national company, and wish to set individual budgets for all of the different branches of your company. Each one has a Budget for sales figures, expenses etc. by selecting the departments within your budget definition, you are able to create these individual forecasts or budgets.

  • The All Classes columns will always appear - this will give you a total. For example - if you had set up budgets

for sales income across three departments, each for $/£1000 in this month - the figure that will appear in the 'All Classes' column will be $/£3,000.

  • If you are creating a budget for multiple cost centres (departments or classes) you may find that the screen does

not fit all of them side by side. In this case it makes it difficult to remember, as you are filling in the details - exactly which account is on which line.

  • In this circumstance - you may choose to tick the box labeled 'Freeze Account Name Column'. This will have the

effect of always displaying the account name column - enabling you to scroll to the right - across all of your departments whilst still maintaining the account name column for easy reference.

The aggressive and conservative columns are the labels entered in the Budget definition.

  • These labels allow you enter varying boundaries for the Budget figures. They are not both compulsory - you may

choose to display only one figure.

  • Should you choose to display both, you are able to have these flexible boundaries. For example - you may

choose as you are entering figures for your sales income that you need to have an aggressive and conservative figure. You may select that if the sales force are aggressive this month (or other time period that you have defined in your Budget definition) that they bring in $/£10,000. But conservatively they may only bring in $/£9,000.

  • The same applies to expenses or any other accounts you set up within the Budget.
  • For example the expense of advertising that we determine might come in conservatively at $/£1000 for this time period

(month). However if we are really aggressive at getting these totals down - we may be able to come in at $/£800

  • The same in this example for travel expenses. Conservative estimates might look at $/£1500 this month, but if

we get aggressive in bringing this figure down - we may be able to come in at $/£1350.

  • So therefore, Aggressive needs to be high for income and low for expenses. Conservative needs to be low for

income and high for expenses. good and bad of aggressive and conservative are reversed as we go through income and expense accounts.

  • Aggressive income - it means more will come in. Aggressive expenses meaning that less goes out.
  • Conservative income - it means less money coming in.Conservative expenses - it means more money going out.
  • At this stage we have created entries for only one period
  • In this example we have created Budget entries for the first month of a 12 month Budget reporting period.
  • We can now translate this information to all other periods (the other 11 months) using the 'copy to all periods'

button.

  • This will open the Budget Variation screen, specifically for the budget you are currently working on. (shown in the

highlighted circle)

  • This feature will allow you to increase or decrease the entries in upcoming time periods by either percentage or dollar amounts.
  • If you don't want to increase or decrease the figures - but maintain the same level across all periods, simply click

on the Copy button without entering a variation amount.

  • For example you may choose that you are going to increase sales by 10 percent each month for the next 12

months.

  • As you hit 'Copy' the program will then perform the calculation of a ten percent (compounding) increase and create

11 more entries for the Budget title.

N.B. The increase or decrease that has been selected will be performed for all accounts that this budget refers to.


For more information regarding the functionallity of lists see Global Features


  • Once the calculation has been performed, the budget list screen will open automatically showing the entries that

have been created by the program.

  • You can see the name of the Budget and description
  • The names of the two variation columns (in this example aggressive and conservative)
  • The Budget number showing the entries created for the time periods set up in the Budget definitions. In this example

12 entries - for twelve months

  • And the start date and end date for each period that has been created.
  • You can now alter or change any one of these periods by double clicking on your selection.
  • You can now change or alter the figures for that particular month (or other time period as defined in your budget

definition)

  • This allows you the flexibility to keep your Budget up-to-date, with any known or unusual circumstances. For

example you may know that in this particular month, you always have a quiet period, and therefore the sales figures will be down and so then will the expenses. You can change the figures by clicking into the field you wish to change and then selecting the save button.

  • The show jobs tick box down the bottom left hand corner of the Budget screen gives you the ability to create

individual budgets for individual jobs that the company has on the go. This function MUST be selected at the beginning of creating a budget for a job that you have on the go.

  • If this tick box is selected - ie you are creating a budget for a specific job. The job name column will appear

allowing you to choose the job name or number from the list.

  • You can then set the Budget for the job by following the normal steps for creating a budget

IMPORTANT: ONCE THE BUDGET IS CREATED - CHANGES CAN NOT BE MADE TO THE BUDGET THROUGH THE BUDGET BUTTON. ALL CHANGES MUST BE MADE THROUGH THE BUDGET VARIATION BUTTON.

If a Budget is no longer relevant - all references to that particular budget can be made inactive through the budget definition list. Simply select the budget that is finished by double clicking the budget required from this list, and removing the tick from the active box (bottom right hand corner) by clicking on the tick once with the mouse.