Budget Variance Report

The Budget Variance Report compares what you planned to spend or earn with what the ledger actually shows, month by month. You enter the plan in a Budget document for a cost center or project and an account, optionally spread over the year with a Monthly Distribution, and the report pulls the actuals from GL Entry for the same account and cost center. A positive variance on an expense head means overspending, which is the signal to ask why before the year runs away. The Budget document can also warn or block a Purchase Order or invoice that would breach the plan, so the report and the control work together.

Variance = Actual - Budget per account, cost center and month; on expense heads a positive variance is an overspend

1. 01First enter the plan: go to Invoicing > Budget > New, pick the cost center, account and yearly amount, then submit.
2. 02Go to Financial Reports > Budget Variance Report.
3. 03Set Company, Fiscal Year 2083-2084, Period Monthly and Budget Against Cost Center.
4. 04Read Budget, Actual and Variance for each month and account.
5. 05A Rs 10,000 marketing budget against Rs 12,500 actual shows a Rs 2,500 overspend for that month.
6. 06Click the actual amount to drill into the General Ledger and see which vouchers caused it.
7. 07Discuss overspends with the department and tighten the Budget action settings if needed.

Open each month to see which expense heads are overspending against the plan.

A Rs 10,000 monthly marketing budget against Rs 12,500 actual shows a Rs 2,500 overspend.