Creating budget

This page allows you to create a budget for a requirement that is in the “Authorized” status. Tell me more.

Select the “Create Budget” link under the “Asset Planning” business component.

The “Create Budget” page appears.

Enter the following field:

Budget No

A unique number identifying the budget (Alphanumeric, 18). Mandatory. This number will be automatically generated if the “Numbering Type” in the “Numbering Class” business component is not set to “Manual”. The number is displayed with the corresponding prefix and suffix of the numbering type selected in the “Numbering Type” field. This number is incremented from the last number available in the “Numbering Class” business component.

The system displays the following:

Status	The status of the budget. It could be “Fresh” or “Active”.
	Fresh – indicates a newly allocated budget. The system updates the budget requirement status to “Fresh” on clicking the “Create Budget” pushbutton. The details of this budget can be modified.
	Active – indicates that the budget has been authorized. The authorized budget cannot be modified. The budget can also be authorized in the “Authorize Budget” activity.

Note: This field must not be left blank if “Manual” is selected in the “Numbering Type” field.

Budget Date	The date on which the budget is allocated (Date Format). Mandatory. This date must be a valid one for the selected financial year. The system date is displayed by default on launch of the page.
Finance Book	Use the drop-down list box to select the code identifying the finance book for which the budget is being created. All the finance books that are deployed in the company will be available for selection. The system displays “All” by default on launch of the page.
Numbering Type	Use the drop-down list box to select the numbering type for the login organization unit and for the “Budget” transaction type. The numbering types must have already been defined in the “Create Numbering Class” activity of the “Document Numbering Class” business component and must be in “Active” status. The system displays the numbering type set as default for the transaction in the “Document Numbering Class” business component.
	You can also select “Manual” if you want to enter a budget number of your own.
Asset Class Code	Use the drop-down list box to select the code identifying the asset class for which the budget is being allocated. The “Asset Class” must have been defined in the “Create Asset Class” activity of the “Asset Type Definition” business component and must be in “Active” status. All the asset classes that have been defined for the company will be available for selection. The system displays “All” by default on launch of the page.
Financial Year	Use the drop-down list box to select the financial year for which the budget is being entered. The “Financial Year” and the corresponding “Financial Period” must be defined in the “Create Calendar” activity of the “Accounting Setup” business component. All the “Open” financial years defined for the finance book will be available for selection in the ascending order. The “Provisionally Closed” financial years that have been defined for the selected finance book will also be available for selection. The earliest “Open” financial year is displayed by default at the launch of the page.

Click the “Get Details” pushbutton to retrieve the budget requirement details.

The system displays the following:

Total Base Requirement Amount	The total budget requirement amount in the base currency of the company. This amount is the sum of all the base amounts that are available for the assets. This amount is displayed at the click of the “Compute Allocated Amount” pushbutton.
Total Base Allocated Amount	The total amount allocated as budget in the base currency of the company. This amount is the sum of all the base allocated amounts that are available for the assets. This amount is displayed at the click of the “Compute Allocated Amount” pushbutton.
Total Base Variance Amount	The total amount till which the actual amount can vary from the budget. This amount is the sum of all the base variance amounts that are available for the assets. This amount is displayed at the click of the “Compute Allocated Amount” pushbutton.

The system displays the following in the “Budget Requirement” multiline:

Note: The system retrieves the “Authorized” budget requirement details for the selected finance book, financial year and asset class combination for which a budget amount is yet to be allocated.

Finance Book	The code identifying the finance book for which the budget is being allocated.
Asset Class Code	The code identifying the asset class for which the budget is being allocated.
Asset Class Description	The textual description of the asset class.
Amount Required	The amount that has been defined as the budget requirement for the asset class.
Currency	The currency in which the budget requirement amount has been entered.
Exchange Rate	The exchange rate of the currency in which the budget requirement has been entered. It both the currencies are the same, “1” is displayed by default.
Base Amount	The budget requirement amount in the base currency of the company.

Enter the following fields in the “Budget Information” multiline:

Allocated Amount	The amount that has been allocated as budget for the asset class (Decimal). Mandatory.
Allow Variance	Use the drop-down list box to set whether you would allow a variance in the budget amount that has been allocated. You can select from “Yes”, “No” and “Unlimited”.
	Yes – indicates that a variance of the budget will be permitted till the percentage or the amount specified.
	No – indicates that there must be no variance in the amount allocated as the budget.
	Unlimited – indicates that there could be an unlimited variance in the amount budgeted and the expenditure incurred.
	The system displays “No” by default on launch of the page.
Variance %	The percentage the actual amount can vary from the budget (Integer). This field must not be left blank if there is no value entered in the “Variance Amount” field.

Note: This field must be left blank if “No” or “Unlimited” has been selected in the “Allow Variance” field.

Variance Amount

A flat amount till which the actual amount can vary from the budget (Decimal).

Note: This field must not be left blank if there is no value entered in the “Variance %” field.

The system displays the following:

Base Allocated Amount	The amount allocated as budget in the base currency of the company. This amount is calculated as the product of the allocated amount and the exchange rate in case the allocated amount is different from the base currency of the company.
Base Variance Amount	The amount that could be the budget variance in the base currency of the company. This amount is calculated as the product of the amount allocated as budget, the percentage of variance specified and the exchange rate of the currency.

Enter the following field in the “Budget Information” multiline:

Remarks

Any comments on the reason for the budget allocated with reference to the required amount (Alphanumeric, 255).

Click the “Compute Allocated Amount” pushbutton to calculate the amount allocated as budget.

The system calculates and displays the total budget requirement amount, amount allocated as budget and the variance amount in the base currency of the company.

Click the “Create Budget” pushbutton to create the budget.

The system generates the unique budget number in case you have opted for the “Automatic” numbering type and the status of the budget is updated as “Fresh”.

The login ID of the user and the system date is stored along with the creation details.

Click the “Create and Authorize” pushbutton to create a budget and authorize it.

The system generates the unique budget number in case you have opted for the “Automatic” numbering type and the status of the budget is updated as “Active”.

Click the “Print Budget Requirement” pushbutton to print the budget requirement.

The login ID of the user and the system date is stored along with the creation details.

The system displays the following:

Created By	The login ID of the user who has allocated the budget.
Created Date	The date on which the budget was allocated.

To proceed, carry out the following

Select the “Non Requirement Based Budget” link at the bottom of the page to create a budget that does not require a budget requirement.

Select the "Attach Notes" link at the bottom of the page for attaching notes.

Creating budget – An overview

You can define a budget for a unique combination of asset class and finance books. In case an “Active” budget exists for a financial year, you cannot define a budget for the same combination.

This page allows you to enter an amount allocated as budget based on the requirement. You can also indicate whether a variation will be permitted between the budget and the expenditure. The percentage of the variation or a flat amount can also be defined for the budget. Any observations required regarding the budget could also be entered. The system calculates and displays the amount allocated as budget and the variance amount in the base currency of the company. The system also calculates and displays the sum total of the budget requirement amount, the allocated budget amount and the variance amount in the base currency of the company. The status of the budget on creation is updated as “Fresh”. This budget can be modified till it is authorized.

This page also allows you to authorize the budget on creation. The status of the budget in this case is updated as “Active”. The details of an “Authorized” budget cannot be modified. The system stores the login ID of the user and the system date along with the creation details.

Prerequisite

“Budget Requirement” must be defined in the “Create Budget Requirement” activity of this business component.

What you can do in this page

Retrieve budget requirement details

Set Budget Variance

Calculate the allocated amount

Retrieve budget requirement details

You can retrieve the budget requirement details based on which the budget must be allocated. The system retrieves the “Authorized” budget requirements for which the budget must be allocated.

Click the “Get Details” pushbutton to retrieve the budget requirement details.

Set Budget Variance

You can set whether there can be a variance in the budget that has been allocated.

Set the “Allow Variance” field to “No” if you do not want to allow a variance in the budget.
Set the “Allow Variance” field to “Yes” if you want to allow a variance in the budget.
Enter a percentage in the “Variance %” field or an amount in the “Variance Amount” field.
Set the “Allow Variance” field to “Unlimited” if you want to allow an unlimited variance in the budget.

Calculate the allocated amount

You can calculate the sum total of the budget amounts that have been allocated. You can also calculate the sum total of the requirement amount and the variance amount.

Click the “Compute Allocated Amount” pushbutton to calculate the sum total of the allocated budget amount.

The system calculates and displays the “Base Allocated Amount”, “Base Variance Amount”, “Total Base Requirement Amount”, “Total Base Allocated Amount” and the “Total Base Variance Amount”.