This information applies to budgets created using GL budgeting capabilities. For more information, see Budget module.
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This information applies to budgets created using GL budgeting capabilities. For more information, see Budget module. |
Each account (or line item) in the budget has 12 budget percentages, one percentage for each month in the fiscal year. The percentage indicates how much of the budget you expect to use during the month. While it is possible to enter budget percentages for each new account, it is also possible to set up default budget percentages, which can save you data entry time.
The sum of the percentages must equal 100% and they apply only to income and expense accounts. Also, you can change budget percentages at any time but be aware that the new percentages may create a new year-to-date percentage and a new variance.
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Right-click in the Budget % Month column opens the Budget Control window. |
For many accounts, the budget will be spread evenly over the entire fiscal year. However, there are other accounts that have uneven periods of activity.
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You might expect to generate 50% of your tuition income in September (the beginning of the Fall term) and 50% in January (the beginning of the spring term) and you might expect to purchase most of your equipment at the beginning of the fiscal year. |
The purpose of budget percentages is to compare the year-to-date budgeted amount with the actual amount on the Variance Report. When a Variance Report is produced, the following steps are performed by the system:
· Calculate the year-to-date percentage. When you run the Variance Report, you will indicate which fiscal month to appear on the report. For each account, the program adds up the monthly budget percentages from the beginning of the fiscal year through the month indicated.
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If July is the first fiscal month, then September is the third fiscal month. To run a Variance Report at the end of September, the program adds up the first three percentages for each account to determine the YTD budget percentage. |
· Calculate the year-to-date budget. This indicates the portion of the annual budget that is expected to have been used at this point in the fiscal year. The program multiplies the current budget by the year-to-date percentage to produce the year-to-date budget.
· Calculate the budget variance. The program subtracts the year-to-date actual amounts from the year-to-date budget. Any contrast indicates a difference between the expected expenditures (or revenues) and the actual expenditures.
If you are configuring General Ledger, fill out the Budget Percentage Defaults worksheet.
