Create Budget Requirement – A summary of the activity
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A budget is required to allocate funds for the purchase of fixed assets during a financial year. The allocation of this budget is based on the requirements that have been generated from the various departments of an organization. A requirement for a budget is usually created for a unique combination of a financial year, finance book, asset class and currency. The requirement is generated based on the experience of the previous years. Based on the requirement the final budget for the fixed assets is allocated for the said combination.
You can enter a unique number to identify the requirement. The system generates this number automatically if you have opted for the “Automatic” numbering type. You can define the budget requirement for all the finance books that have been deployed in a company for the “Open” or “Provisionally Closed” financial years if you have the rights to do so. You can enter the budget requirement amount required in a currency that is mapped to the company for the individual asset classes that already exist in the login organization unit. If the currency is not the same as the base currency of the company, the system calculates the required budget amount in the base currency taking into consideration the exchange rate. The status of the budget requirement is updated as “Fresh” on creation. This budget requirement can be modified before it is authorized.
This page also allows you to authorize the budget requirements. The status of the requirement is then updated as “Active”. The login ID of the user and the system date is also stored along with the budget requirement details.
What you can do in this activity
The different departments in an organization raise their budget requirements for a financial year for the purchase of fixed assets. This requirement is created for the existing asset classes. A budget requirement is usually raised for the “Open” financial year available in a finance book. The user who has rights for various finance books can define the requirements one by one.
Go to “Create Budget Requirement” page.
Enter the necessary information.