Budgeting

Budgeting holds Budget, Cost Center, Monthly Distribution and Cost Center Allocation, with the Budget Variance chart comparing budget to actual per cost center. The owner sets yearly spending limits per department here, such as a Rs 1,20,000 marketing budget spread over twelve months, and the system can warn or stop a Purchase Order or Purchase Invoice that would exceed it. Actuals come from GL Entry on the budgeted expense accounts. It is opened at the start of the fiscal year to set budgets and monthly to review the variance.

1. 01Go to Budgeting from the sidebar.
2. 02Click Budget > New, choose the cost center, fiscal year and the expense accounts with their amounts.
3. 03Optionally attach a Monthly Distribution to spread the budget unevenly across months.
4. 04Set the action on exceeding budget to Warn or Stop, then submit.
5. 05Read the Budget Variance chart each month and open the report for details.
6. 06Adjust the budget by amending it if the plan changes.

Set yearly spending limits per department.

A Rs 1,20,000 yearly marketing budget tracked month by month.