Creating Budget for Groups

  1. In the Budget Creation/Alteration screen, set Yes in the Groups field, to set budgets for a group or group of ledgers.

  1. In the Group Budget screen, select a Group from the List of Groups and enter Account Name.

  2. Enter the cost centre for a group in Cost Centres field, select Not Applicable, if the budget is not for a particular cost center.

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

  2. 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.

  3. 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.

  1. Enter the budget amount in the Amount field.

 

Note : Group Budgets do not get apportioned whereas Ledger Budgets get apportioned for each month.