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Budgets

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Transcript

In this video we are going to discuss about budgets. budgets. What is the budget? a budget is a projection of revenues. A budget is the projection of revenues. A budget is a one time setup in GL module.

Any company you take must and should define a budget is a one time setup in the year. The budget means section of revenues. We are going to define the budget in that GL module or any one expense. For example, company maintained different type of expenses right. We are going to assigning the budget amount to that any expense after assigning the budget, then whatever expenses we use, so that amount is deducted from that budget amount on that expense amount is deducted from the budget is a one time set a budget is okay, so before going to define a budget in GL module, first we have a one accounting setup for the budget. First go to define accounting setup for that budget.

Okay, so now Close login to the application using of operations and welcome operations and welcome. So whenever we create a budget by default, the system creator gentleman's after creating the budget according to that period rice, the system create a journal entry for that budget. Okay that that type of journal entries are called de budget journal entries. By default, the journal entries are created automatically whenever we created a budget. So how to define the budget? We have to define the budget according to that period voice.

According to that period voice let me define the different periods right the PDFs are within the calendar. The calendar is a fiscal calendar we define the fiscal calendar can contains totally 12 periods January to December totally it comprising of 12 periods means suppose if you want to define the budget for January to December means the budget periods are the 12 periods are is if you don't want to declare all the periods as a budget period, maybe you can declare six months period outside like the January to June or June to December or April to October whatever it may be. compulsory we must assign the budget according to the PD advice. Okay, so you must enter select the budget periods. You must enter select the budget periods according to the period we are going to define them But so whenever we assign the amount to that, affiliates, by default the system creates their journal entries for each period one journal entry is created.

So that type of journal entries are called budget journal entry. So, all these budget dinners are created automatically after entering the budget amount to period device The dementors are created automatically. So this type of journal entries are called that but get jealous Okay, so already we discussed standard journals, suspend journals, recurring journals, right. So, these are the different type of journal entries in the GL model. Okay, so now let us go to log into the GL model, and then first defining accounting setup for the budget. So already, we did Finally two types of accounting setups right the first one is a retained earnings account and second one is that suspense account.

Now before going to define the budget, so there is a one more accounting option is mandatory go to define that accounting option. Now, what are the navigation files which responsibility now I'm going to first log into the system administrator go to assign a primary ledger to the responsibility level because we want to use our own ledger right profile system for the Select application as General Ledger and the responsible the general ledger region operations So now we're lesson number two ledger is created right? Now go to assign our destination okay maybe new system honor it that will be assigned but I have to change the ledger frequently okay so that's a compulsory mastering should chain that ledger in my system but in your case it's not mandatory okay so now go to save the file and close it again go to log into the GL file switch responsibility login to the Level model GL ledger vision operations General Ledger vision operations it is a standard responsibility of the GL model.

Okay. So after logging into the GL now we are going to define a counting option for the budget. So the navigation is a sector financial accounting Setup Manager accountant setup costs go to define accounting setup for the budget. The navigation is setup financials, accounting Setup Manager accounting setup. Okay, now code go to query web lead ledger. A ledger is a test ledger Got This is our test ledger, right?

So go to click on Select your test ledger and click click on Update accounting options, update accounting options Okay, now this is your legal entity and this is your ledger and these are the ledger options and go to click on Update button. Okay, now the first page displays the ledger the ledger details and go to next click the next page. In the first way there is no budgetary options but to click on the next So in the next two pages also there is no budgetary option okay, but to click on the next so in the fourth page, the third page there is a budgetary control. Okay, in the fourth third page there is a budgetary control. So now go to assign this budgetary control. Now go to fill this options.

So here if you want to define a budget before going to define the budget, first we need to assign this accounting center. First we need to set up this accounting options. Enable budgetary control. If you want to define the budget you must insured enable this checkbox, enable budgetary control and required budget journals because whenever we create the budget the system creates Accounting journals right? So, automatically the journal entries are created. So you must enter enable this checkbox after enabling only by default the system create accounting journals for debtor budgets and also tasking the reserved for encumbrance account encumbrance is nothing but the reserve account okay.

So, how to assign the account here reserved for encumbrance account? Why because whenever we create a budget, so that amount is transferred to this account Okay, whatever whatever what type of amount we enter to the budget, so that amount is transferred to this account okay? reserved for encumbrance second. So hard saying that cash account here okay. Select the list of values, select the code combination of cash and so our company's a 01 company right already we selected 01 same company and the department is 00. department by because but you It is not defined the department budget. So overall company one select the department is no department and account is a cash account on account these are cash account and product is 0000 Okay, next after that go to click on the Create button.

Now the system created the code combination of cash, enable the code combination go to click on Select button. Now the combination is displayed here. Okay, so this is a setup for budget before going To define the budget This is a setup you must ensure define this setup okay after that go to click on the Finish button once you click the Finish button now the system view the confirmation ledger test ledger has been updated now the system use that confirmation ledger as ledger as we update. Okay. So this is a first to set up before going to define the budget. This setup is mandatory.

Okay. Next after that close the accounting setup window and next step is go to define a budget. Next step is go to define the budget. The navigation is budgets, define budget. Now go to define the budget. The navigation is budgets defined budget Budget define budget.

So this is a farm itself we are going to define the budget. Now by default Eva ledger is get enabled okay? And what is the budget name, enter any name, budget name is purely used anything. You can give any name. Test underscore budget. Test underscore budget and description is not mandatory.

And what is the ledger already we assign the ledger at responsibility level right? When you log into that responsibility by default a villager is enabled by default but dispatcher is activated and what is it that gets status. So here there is a three types of status are there. The first one is the open, second one is the frozen and third one is the current. The budget status are the three types. The first one is the One second one is the frozen third one is that current Okay.

Now let us discuss about one by one. So when we are going to use the open status, okay? Suppose if the budget is the new budget, okay? The budget is a new budget at the time of defining the new budget every year. Now we select the status as they're open. And also, whenever we require that amount, suppose maybe we can change the budget and montage at any time.

When you select the status of the budget as a weapon, it's a new it's indicating it's a new budget. And also we can change the budget amount at any time. Suppose I declared the budget period as as April to October. Suppose now I'm assigning the budget amount for each period is a 50,000 rupees per one expense. Maybe to three months, I feel the amount is not sufficient for the expense at the time, maybe I can change the budget, maybe I can increase the amount also in society I increased the 60 or increased the 70 hours. Okay, then the chance to increasing the amount the budget amount at any time according to the requirement.

Okay, so if you want to change the budget template, we have to use the status as a weapon. Okay, indicating it is a new budget, but we can change the budget amount at any time. According our requirement, maybe we can change the budget amount also. That is the weapon status. And the second one is the frozen status frozen means it is also indicating the new budget, but we cannot make more changes under budget After defining changes means we cannot increase the I wanted to fix it on it's frozen on we cannot make any more changes under budget. Okay, that is a frozen and the third one is that current budget current means so this year we don't want to create a new budget.

So already there is a last year budget is there right? Maybe we can use that budget. We cannot create a new one or the current budget last year budget is already activated and we are going to use that last year budget okay. So these are the three types of status or the according to the requirement maybe we can use any one status here. advisory means here we are going to use the weapon and why because every year we have to increase the budget amount, right. Why because we have to increase our company, our transactions operations.

Okay. compulsory, you must and should increase the budget amount also. So their spare visit is the open maybe some companies I'm going to use the last year but it's only at that time they're going to use that current okay so now I'm going to use the open here and required by Jeunesse already we enable this checkbox into the accounting options right. So by default here it is enabled okay. So we need not unable manually by default it is enabled on it okay and what does the budget periods now, the budgets are defined according to the period wise. Now we are going to define we are going to selecting the budget period already periods are defined right.

So, our period starts from January to ending in December. So, in this 12 periods, whatever the budget period now we are going to select in the budget periods in this two in this era. Maybe we can select a January to December also our January to June answer June to July and maybe according your requirement, you had to select the budget PFC. Now our transaction starts from March onwards right? Now I want to define the budget from March to October, okay. Now the first period is a march period because our transaction starts from match period onwards, right.

Okay, and what is ending period last period suppose I don't want to take December, I want to take October, March to October. So these are all the budget periods. Now I'm going to after declaring the periods, I'm going to signing the budget amount to each and every period. Okay. Next, suppose I entered the budget periods as March 2018 to October 2018. And then go to savage Now you get the message transaction complete one record upload and save after that go to click on the Open next year compulsory you must should open the next year budget.

Maybe the answer to be if you want to use the next year budget you can use you have to activate the next year budget also. Are you sure you want to open the next year budget to test budget? Yes. Now one standard program is running your concurrent request IDs find in four to seven double five Okay. Let us see whether this program is successfully completed or not. If this program is successfully completed, now the budget is created successfully.

Now the budget here is successfully completed. Okay. Okay, and the budget is created after that go to define that budget organization. After that, go to define the budget target As the navigation is the budgets defend organization. Now go to give the budget organization name, the name is purely user defined you can give any name but judge organization under test the budget by default the test budget is activated and what is ordering segment accounts by default gathering segment is a continent. Actually in our flexible structure that there is a four segments are their company department and content product right for the Forex segments are there.

But by default here the account segment is automatically taken. Why because whenever we assign the budget, they consolidate enable right. They consolidate enabled only. Okay, so by default, it takes a count as a foster segment and whatever the remaining Three whatever the remaining three. So, how to rearrange the structure one more time. This last sequence if the budget is if the economy is a foster segment, whatever company suppose I had to rearrange the segment structure as a company as a two department as a three an account as a one and product as a four.

So, by default in the budget organization that countries are forced to segment the organization will treat that account as a first segment but in the commercial structure, they don't is a third position right. Now, we are going to reconstructing the structure here. So, now, I split I budget in the budget organization, this is a new structure. But the new structure is applicable only for the budget organization and not for all the transactions whenever we created transactions in the budget organization Based on this sequence the chord combination is created, but remaining in other situation know what is the version structure we created? That structure is followed on us now this is only for the budget organization. Okay.

Going to click on the range Yes. So we're going to define our budget ranges. Select the budget account suppose for each expense we are going to assign in the budget. So now some some company department and what is the account so go to Select your account suppose I'm going to do that count as a salary account. I'm going to assigning the budget to salary accounts okay. And the type of form is entered and this is your test currency.

Okay, click on the range assignments, so select the same quarter combination company department account is a salaries account right? And the product okay and go to sales after assigning that into segments go to save it closet. Okay so now got After defining the icon, now go to click on the budgetary control so here funds check level now we are going to assigning our budget to the organization how to assign the budget organization means with help of the budgetary control okay and here the funds check levels are the two types advisory and absolute. So when we are going to use this to advise the demons in this budget is the last year budget. So last year's budget we are going to activating this year we need not create a new budget editor. We have to select the Punch sheet level hazard advisor absolute means if the budget is a new budget here okay now we are going to assign the new budget to the organization editor we are going to select the absolute means we have to enter the absolute amount to further budget Okay, so in this case this already we created a new budget right now I'm going to signing the new budget to the organization so that's why I'm selecting the font set level as their absolute and what is a moon type is the always it's a pretty defeated demons period to date.

Always the amount to type in not only in the budget any any case you select, amount type is always PTP money period today. And what is the boundary means period. And what is the funding budget only budget is create an eye test budget go to assign our test budget Okay, now go to transaction complete one record a pregnancy. Okay, so now we created one budget, and we created one budget organization, assign our budget to the organization. The next step is now go to enter the budget amount. So I'm in a budget periods were declared.

Now go to assign the amount to each and every period wise. The navigation is budgets and that journals. So whenever we assign the budget deadness By default, the system created accounting journals, right. Okay. Now go to query your budget. your budget is a test budget, right?

An organization is a test organization. And what does a period starts from March to October and this is your functional currency test Diana. I'm photo selling comparative is selected when a con right go to select the tech counter for the combination expense account company department maybe get a high low means you can select more than one company more than one department more than one come icon also maybe we can assign a certain budget for more than one occurrence also, so that they had to select the low and high okay. So, now I selected the chord combinations to selected. So, the chord combinations displayed on the new sequence side first is a count second is the company third one is department fourth one is the account. Now, the amount of for each period is 0001 day now we are going to signing them on to them each and every day.

So how to assign the amendments with what to click on the budget rules button. So there is a one rule is there. Actually the rules are given by the Oracle only. So we have to use a tool to assigning the budget amount to the periods. What is the role here there is a different time flutes are dead, because when I select the period vise budget, so maybe the amount is same for all the periods right. So, the role is repeat per period on repeat per period means whatever amount we entered for the first period the same amount is repeated for all the periods.

This is a standard rule given by Oracle only, okay, how much amount they are going to assign in the budget suppose, I'm giving the budget amount as a 30,000 rupees for each period. Okay, I'm going to click on Apply button when I click on Apply button the 30,000 rupees to assigning each and every period from March to October Okay. Now the amount is assigned to each and every amount each and every period now go to show total for two lakhs 40,000 the total amount is two lakhs. Okay, now that we assigned After that system create a journal entries right now go to click on Create journals so tasking the budget journal batch and what is the category say my discipline and financial status compulsory before going to create a journal entry you must and should cross check whether the amounts are assigned to the periods or not.

Why because whenever you want to create a journal compulsory the amount is mandatory right? Okay, go to check punch. Do you want to save your changes? Yes. Transaction complete one record upgrade and save Okay. Now that transaction is what tasks section faster friendship, okay.

I'm going to click on that reserve funds transaction passive funds reservation already funds are reserved Okay. Okay. click on Done button now this status is passed then now you are ready to create a journal concurrent request studies find in 4275 Okay. They can see that the status of that program whether the program is successfully completed or not go to View request find now the program is pending refresh it Okay, now, after completing the program the journal entries are created go to find the journals, journals and journal and now the geometries are created. Okay, let's go to find the journal click on the Find button. Click on the Find for each period one journal entry is created, totally 12345678 journals are created for March to October okay now go to play Okay, posted for each video the posting and standard program is running let us go to see that program whether the program is successfully completed or not.

If the programs are successfully completed now they're done demand to sell successfully posted So after posting and maybe you can vary the funds also after March is completed maybe some may have to come in the march already completed the Saturday journal right. Maybe we can find them in query financials, how much funds status of journalists posted, okay, let's go to and query the funds. Go to the navigational inquiry function. Now go to query our budget budget. So here a moon type is not here today today and our budget is test budget and the period okay? Select the same account to go to combination.

Company department is it is it a department and a counter In the senate as expenses salary account Okay. Now let us say we assign the amount is 30,000 budget we assign already actual utilization is 500 and the remaining funds are 29,500 is already be used 100 rupees okay and the remaining amount is 29,000 after assigning the budget now go to check the inquiry fun sensor. So, before going to the new month, say are going to inquire with the funds also how much funds you have. Okay, so this is nothing but their budgets and then that's already available we'll go to see a translation reporting currencies okay.

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