Create Budget – A summary of the activity
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It is a practice of larger organizations to plan for the purchase of the assets for a financial year. This plan starts with the requirement of the budget that is generated with respect to the expenditure incurred in the earlier year and the plans for the current year. The requirements that are generated by the various departments are consolidated and a budget is allocated.
There are two types of budgets that can be allocated. The first one is the “Budget” that is based on a budget requirement document and the second is the “Non Requirement Based Budget” that does not require a budget requirement document.
This activity allows you to allocate a budget based on the budget requirement document. You can allocate a budget for a unique combination of finance book, financial year, and the asset class code in the base currency.
This activity also allows you to allocate a budget without a budget requirement document. You can allocate a budget for a unique combination of finance book, financial year,and the asset class code in the base currency..
This activity also allows you to authorize both the types of the budgets that have been allocated. The system stores the login ID of the user and the system date along with the budget details
Getting familiar with the pages inside
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Go to page |
To carry out the task |
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Create Budget |
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Non Requirement Based Budget |
What you can do in this activity
Allocate budgets without requirements
Budgets can be allocated for asset classes for a selected finance book and financial year. Budgets are allocated if a budget requirement has been raised for it. The status of the budget requirement must be in an “Authorized” status.
Go to “Create Budget” page.
Enter necessary information.
Allocate budgets without requirements
Budgets can also be allocated for asset classes for a selected finance book and financial year without a requirement raised for it. This budget is termed as a “Non Requirement Based Budget”.
Go to “Non Requirement Based Budget” page.
Enter necessary information.
While allocating a budget for a specified requirement, provision for variance can also be set. The variance in the budget and the actual expenditure can be set or it could also be unlimited. By setting a variance the budget can be tightly controlled. You can also set the provision for variance for a budget that has been allocated without a budget requirement.
Go to “Create Budget” page.
Set the percentage or amount of variance.
Go to “Non Requirement Based Budget” page.
Set the percentage or amount of variance.