# 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](#set-up-analytic-accounting-and-budgetary-positions) |
| Create or advance a budget | [Create and progress a budget](#create-and-progress-a-budget) |
| Read budget amounts or open detail entries | [Review budget lines and open entries](#review-budget-lines-and-open-entries) |
| Correct a blocked budget action | [Budget validation messages](#budget-validation-messages) |
| Continue with journal or reporting work | [Accounting journals and bank activity](doc:accounting-journals-and-bank-activity) or [Reports and audit work](doc: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**

1. Open the Accounting destination for the record you need.
2. 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**

1. Add the accounts in **Accounts**.
2. 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**

1. Enter the budget name in **Budget Name**.
2. Select the responsible person in **Responsible**.
3. Set the budget period using **Period**.
4. Select **Company** when your access includes multiple companies.
5. Add each budget line in **Budget Lines**.
6. 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**

1. Read **Planned Amount** to see the amount planned for the line.
2. Read **Practical Amount** to see the amount actually earned or spent.
3. Read **Theoretical Amount** to see the amount expected by the current date.
4. Read **Achievement** to compare the practical and theoretical amounts.
5. 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](doc:accounting-journals-and-bank-activity) for journal-entry work or
[Reports and audit work](doc:reports-and-audit-work) for reporting and audit work.

**Result:** You know whether to open line detail or continue with journal and reporting work.