Budgeting based on an original/modified budget

The new annual budget is based on the budget from a previous year.You can start with the original or changed budget from that year and then increase or decrease it by a percentage. Profit distributes the new annual budget over the periods using the periodic allocation table.

If you have linked cost centres to a specific ledger account, Profit also budgets the cost centres. In this case, the realisation per cost centre/ledger account serves as the starting point. Profit determines the annual budget per cost centre, on the basis of the old annual budget per cost centre, and distributes it across the periods using the periodic allocation table.

Note:

Link another periodic allocation table to the ledger account if you do not want to allocate the budget for this ledger account using the proportionate periodic allocation table.

To generate a budget automatically on the basis of an old budget:

1. Go to: Financial / Ledger / Budget.

   Profit displays a view with all the already budgeted general ledger accounts per year.

2. Click on the action: Generate budget.
3. Select a range of general ledger accounts by entering the lowest and highest value for the range. You can adjust the selection later.
4. If you want to budget cost centres then you must select Cost centre in the allocation axis.
5. Enter the year to be budgeted.
6. Enter the percentage by which the budget must be increased. If you want to decrease the budget, enter a negative percentage.
7. Specify how you want to round the new budget.
8. In Budget is based on, specify whether you want to use the original or the modified budget.
9. Click on: Next.
10. Enter the year for which you want to copy the budgets.
11. Click on: Next.

    Profit displays all ledger accounts that fall within the range and that can be budgeted. In the Basis budget  column, you see the calculated annual amount based on the realisation for the years and periods you have selected. The Budget amount is the annual budget after the percentage increase or decrease has been applied.

12. Select the check box(es) of the account(s) to be budgeted.
13. Click on: Finish.