Creating Budget for Ledger Accounts

1. In the Budget Creation/Alteration screen, set Yes in the Ledgers field, to set budgets for ledgers.
   
   

1. In the Ledger Budget screen, select a Ledger from the List of Ledgers and enter Account Name. You can also define Budgets can also be defined for Cost Centres pertaining to Ledger Accounts such that you can repeat the same ledger with another Cost Centre.
   
   

2. Enter the cost centre for the Ledger Account in the Cost Centre field. Select Not Applicable if the budget is not for a particular cost centre, but for the company.
   
   

3. In Type of Budget, select from the following two types.

4. On Nett Transactions: Select this option to monitor the transaction amounts and not the balances. Nett is the amount that is free from all charges or deductions associated with debits and credits for the specified period. Nett transactions Budgets specified for a period automatically gets apportioned over the period. When you define On Nett transactions Budgets, the system uses the debit amount for the specified period after reducing the credits for the same period and without taking into account opening and closing balances. For example, to compare transactions against budgets, especially revenue income and expenses, you can select On Nett Transactions.

• On Closing Balance: Select this option to monitor the balances of the Accounts and the not the transactions. Each month has the same budget value except that the actual Opening Balance is also taken into account. You can set up budgets on Closing balances for Bank Account Ledgers, and Debtors Ledger balances. For example, to compare closing balance figures in final statements, especially Balance Sheet items like assets and liabilities, select Closing Balances.

4. Enter the budget amount in the Amount field.
   
   

Note :  Ledger Budgets get apportioned for each month.