Creating account budget

This page allows you to define account budget for multiple accounts at a time or define control action with respect to individual accounts. Tell me more.

Select the “Create Account Budget” link under the “Account Based Budget” business component.

The “Create Account Budget” page appears.

Enter the following fields:

Finance Book	Use the drop-down list box to select the code identifying the finance book in which the account details are to be posted. All the finance books mapped to the login organization unit are listed down for selection.
Financial Year	Use the drop-down list box to select the open financial year for the selected finance book. The displays all the open financial year for the selected finance book in the drop-down list box. The financial year must be defined in the “Create Calendar” activity of the “Accounting Setup” business component. The system displays the last open financial year by default.
Financial Period	Use the drop-down list to select the financial period for the financial year. The financial period must be defined in the “Create Calendar” activity of the “Accounting Setup” business component. The system lists all the open financial period for the selected financial year. The system leaves the field blank by default.
Control Action	Use the drop-down list box to select the control action to be enforced on the account. The two-control actions available are
	Ignore – If the transaction exceeds the budget fixed, then the system records the transaction as an exception.
	Hold – The system will not allow the transactions to be posted whenever the account budget is exceeded.
	The system displays “Hold” by default.

Enter the following fields in the “Search Criteria” group box to search for the account for which the account budget has to be created:

Account Code From	The starting number in the range of account code for which the details are to be retrieved (Alphanumeric, 32). You can enter the account code in full or specify it partially using the “*” character. The system lists all the account codes that are greater than or similar to the value entered here.
	If this field is left blank and the “To” field is entered, then the system retrieves the account code from the first record till the account code specified in the “To” field.
To	The ending number in the range of account code for which the details are to be retrieved (Alphanumeric, 32). You can enter the code in full or specify it partially using the “*” character. The system lists all the account codes that are lesser than the value entered here. The number entered here must be greater than the number entered in the “Account Code From” field.
	If this field is left blank and the “Account Code From” entered, then the system retrieves the account codes starting from the number specified in the “Account Code From” field till the last record.
Description	The textual description pertaining to the account code (Alphanumeric, 40). Enter the description in full or specify it partially using the ‘*’ character. The system lists all the account code whose description is similar to the description of the account code.
Account Group	Use the drop-down list box to select the group to which the account belongs. This account group must be defined for the account in the “Create Operative Chart of Accounts” activity of the “Accounting Setup” business component. The system displays “Expense” by default.
Currency	Use the drop-down list box to select the currency of the account. All the “Active” currencies are listed in the drop-down list box. The currency must be defined in the “Create Currency and Country” activity of the “Organization Set Up” business component. The system displays the base currency by default.

Click the “Search” pushbutton to retrieve the account code details.
Enter the following fields:

Carry Forward Budget

Check the box to carry forward the budget from one financial period to the subsequent financial period.

Apply Seasonal Adaptation Pattern

Use the drop-down list box to select “Yes” to apply the seasonal adaptation pattern for the financial period of the selected financial year. The seasonal adaptation pattern must be set for the financial period in the “Seasonal Adaptation Pattern” screen of this business component. The system leaves the field blank by default. Seasonal adaptation pattern is applicable only for those accounts, which are displayed in the multiline.

Note: The seasonal adaptation pattern must be set for the open financial period.

The pattern must be set for the combination of finance book and the financial year.

The system displays the following fields in the “Budget Information” multiline:

Finance Year / Period	The financial year/period to which the budget amount has to be set.
Account Code	The code identifying the account.
Description	The textual description pertaining to the account code.

Enter the following field:

Budget Amount

The budget amount set for each accounts (Decimal). Mandatory. The budget amount must be greater than zero for all expenses and liabilities. The budget amount must be greater than the utilized amount.

Note: The sum of the budget amount of all the financial period must be less than or equal to the amount set for the financial year.

The system displays the following fields:

Account Group	The group to which the account belongs.
Currency	The Account currency of the account.

Check the box in the “Select” column of the multiline to mark the financial year for setting the budget amount.
Click the “Create Budget” pushbutton to create the budget amount for the each account code in the financial year / period.

The system saves the budget details for the financial year / period.

To proceed, carry out the following

Select the “Seasonal Adaptation Pattern” link at the bottom of the page to create seasonal adaptation pattern for each financial period of the financial year.
Select the “Attach Notes” link at the bottom of the page to record observations pertaining to the newly created account budget.

Creating account budget – An overview

The system treats the budget amount depending on the control action specified. There are two types of control action namely Ignore and Hold. For fixing up the account budget, you can carry out the search using the code identifying the account, description of the account code, group to which the account belongs and the account currency of the account. The system retrieves the budget information like the code identifying the account, description of the account code, group to which the account belongs and the account currency. You can provide the budget amount for the account.

This page also allows you to carry forward the account budget set from one financial period to another financial period. You can carry forward the budget only from the closed financial period to the open financial period. If the utilized balance of the account does not exceed the budget amount, the difference between the budget amount and the utilized amount is added to the budget set for the following period. Hence the budget for the following period is modified to the extent of the difference between the budget amount and the utilized balance of the preceding financial period. If the difference amount is negative, the budget amount of the following financial period will not be changed. The difference amount can be carried over only to the subsequent financial period in the same financial year. It cannot be carried over to the subsequent financial year.

You can also apply the seasonal adaptation pattern for the account code if it has been set for the financial period.

Prerequisites

The account must be mapped to the account group in the “Create Operative Chart of Accounts” activity of the “Accounting Setup” business component.
“Seasonal Adaptation Pattern” must be set for the financial year, in case you want to apply seasonal adaptation pattern.

What you can do in this page

Specify the control action while creating account budget

The system treats the budget amount depending on the control action specified.

Set the “Control Action” to “Ignore” to ignore the transaction if it exceeds the budget amount.
Set the “Control Action” to “Hold” to hold the transaction before posting, if it exceeds the budget amount.