Budgets and analytic accounting
Budgets and analytic accounting
Analytic accounting classifies budget lines through analytic accounts; budgets record periods, responsible people, companies, and budget lines.
| If you need to… | Go to |
|---|---|
| Prepare account classifications for a budget | Set up analytic accounting and budgetary positions |
| Create or advance a budget | Create and progress a budget |
| Read budget amounts or open detail entries | Review budget lines and open entries |
| Correct a blocked budget action | Budget validation messages |
| Continue with journal or reporting work | Accounting journals and bank activity or Reports and audit work |
Before you start
Prerequisites
Have the budgetary-position information and the budget-line information ready. A budgetary position contains the accounts used by the budget, while a budget line contains its classification, period, and amounts.
An analytic account identifies the analytic classification used by a budget line. Access to analytic accounting controls whether Analytic Account is available on a budget line. Multi-company access controls whether Company is included on the budget and its lines.
Result: The records, account access, and company access needed for the next task are clear.
Find an analytic or budget record
An analytic record organizes accounting activity by an analytic classification, while a budget records planned and compared amounts for a defined period. Use the Accounting destinations to open an existing record or to start a new record from its list.
The covered destinations are Analytic Items, Analytic Distribution Models, Analytic Accounts, Analytic Plans, Cash Roundings, Budgetary Positions, and Budgets.
Prerequisites
- You have access to the Accounting area.
- You know whether you are opening an existing record or starting a new one.
Steps
- Open the Accounting destination for the record you need.
- Choose the route that matches your task.
| If you need to… | Choose… |
|---|---|
| Review a saved record | The existing record in the destination list |
| Start a record | The destination's new-record option |
Result: The selected Accounting destination or record is open.
Set up analytic accounting and budgetary positions
Use the budgetary position's accounts and, where needed, an analytic account to classify a budget line.
Prerequisites
- You have the accounts that belong to the budgetary position.
- Your access includes analytic accounting if the budget line needs an Analytic Account.
Steps
- Add the accounts in Accounts.
- Select an Analytic Account on the budget line when analytic accounting is part of the classification.
Result: The budgetary-position accounts are ready for use in budget lines.
Create and progress a budget
A budget records a named period, its responsible person and company, and the lines used to compare planned, practical, and theoretical amounts.
Prerequisites
- The budgetary position and any analytic account needed by the lines are ready.
- The budget is at the stage where its identity, responsible person, dates, company, and lines are editable.
Steps
- Enter the budget name in Budget Name.
- Select the responsible person in Responsible.
- Set the budget period using Period.
- Select Company when your access includes multiple companies.
- Add each budget line in Budget Lines.
- Select the next stage action in order.
| Order | Select… |
|---|---|
| First | Confirm |
| Second | Approve |
| Third | Done |
Result: The budget advances through the available stage actions.
Use the alternative stage actions when the budget needs a different outcome:
| If you need to… | Select… |
|---|---|
| Return the budget to its draft stage | Reset to Draft |
| Cancel the budget | Cancel Budget |
Result: The budget is either advanced, returned to its draft stage, or cancelled.
Review budget lines and open entries
A budget line is the period-and-classification record whose planned amount is compared with its practical and theoretical amounts.
Prerequisites
- A budget line is present in Budget Lines.
- The line has a budgetary position or an analytic account.
Steps
- Read Planned Amount to see the amount planned for the line.
- Read Practical Amount to see the amount actually earned or spent.
- Read Theoretical Amount to see the amount expected by the current date.
- Read Achievement to compare the practical and theoretical amounts.
- Select Entries... when you need the underlying detail.
The detail route depends on the line's classification:
| If the line has… | Entries... opens… |
|---|---|
| an analytic account | analytic items for that account and period |
| no analytic account | journal entries for the budgetary position's accounts and period |
Result: The budget-line measures are available, and Entries... opens the applicable detail records.
Budget validation messages
Budget validation messages identify the account, classification, or date condition that stops the budget operation. Correct the named input before trying the budget operation again.
| Message | What to do |
|---|---|
The budget must have at least one account. | Add at least one account to the budgetary position. |
You have to enter at least a budgetary position or analytic account on a budget line. | Add a budgetary position or an analytic account to the budget line. |
"Start Date" of the budget line should be included in the Period of the budget | Set the line's start date inside the budget period. |
"End Date" of the budget line should be included in the Period of the budget | Set the line's end date inside the budget period. |
Result: The correction for the displayed budget validation message is identified.
Know what is next
After a budget reaches its intended stage, its lines can lead to the underlying analytic or journal detail, and the budget can lead to reporting and audit work.
Select Entries... on a budget line when you need the detail records. Continue with Accounting journals and bank activity for journal-entry work or Reports and audit work for reporting and audit work.
Result: You know whether to open line detail or continue with journal and reporting work.
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