Sap business one budget setup

Note that you need to make decisions about accounting definitions together with the client accountant. The Budget module helps you manage and track company expenses. In order to setup the budget functionality you need to:. First, the budget functionality has to be initialized. Then, you define what should happen when documents deviates from budget. Whether to block the creation of transactions that cause the budget to be exceeded. Or to send an alert when the budget is exceeded. The user can confirm and add the transaction, or cancel.

When the Without Warning option is chosen, the user will be able to add, without any restriction or warning, transactions that exceed the budget. For Purchase Requests, Purchase Orders and Goods Receipt POs the check is made against the budget during the issuing of the document including all open documents and the current one.

You can manage the budget on an annual or monthly basis. We will discuss these two options in the next slides. After you initialize the budget functionality, and update the General Settings window, you have the option to mark all profit and loss accounts as budget accounts.

In our example, if OEC Computers will choose the annual budget option and enter a forecast amount of to the flight expense account, then the check for budget deviation would always be against this amount. If OEC Computers will choose the monthly option and enter the same amount of as the forecast amount of the flight expense account, then the system would distribute this amount to 12, allocating a monthly budget of The check for budget deviation would be against this distributed amount.

With the annual option, the budget check will approve this expense because is still within the year forecast amount of According to the monthly budget, the limit for expenses on flight tickets in each month is , so is already a budget deviation and therefore the purchase order would be blocked.

Note that if the warning option is chosen in the General Settings for budget, then the system would send an alert when the budget is exceeded. The user can confirm and add the transaction if an authorization to confirm budget deviation was defined for this user. In the example we have just seen, SAP Business One used the Equal budget distribution method to automatically divide the budget amount among the months of year.

SAP Business One automatically defines the following 3 common budget distribution methods:. These methods cannot be revised.

However, you can choose to add additional methods. Note that later on, you can change the distribution of the budget amounts manually for each account. You can define a certain distribution method as the default method by choosing the Set as Default button.

Also note that budget distribution methods are not relevant for working with an annual budget. Budget scenarios are used mainly for displaying budget reports. Using a scenario, you create an analysis of a particular situation for the company's budget and obtain information about what the budgetary balance would be according to the selected scenario. For example: an optimistic scenario versus a pessimistic scenario. When you set up a new company, the application provides a default scenario called Main Budget.

This scenario cannot be altered. For each scenario the company uses, you should later enter budget amounts. Note that in the course of routine work, deviation from the budget is checked against the main budget only. The other scenarios are used only for budget reports! Select a fiscal year. The first defined scenario will be the default main scenario and therefore cannot be deleted.

In addition, the Based On and the Initial Ratio fields in the main scenario cannot be altered. In the next step we will enter budget amounts to this main budget scenario. The Copy Budget Scenario function lets you copy budget data from a budget scenario into a target budget scenario in the same company for the same fiscal year or for the next fiscal year.

Finally, you define budget amounts. When you create a new budget that includes accounts without previous budget definitions, the window does not display any accounts. In such a case, select the Display Accounts with no Budget checkbox.

For each account, you can change the budget amount and the distribution method. You can also change the distribution of the budget amounts manually using the Budget Item Details window. Balance Sheet Budget Report. Trial Balance Budget Report. Profit and Loss Statement Budget Report.

Cost Centers. Parent Accounts. Looking for more information? Feel free to browse our resources or check out our knowledgebase. If you have any questions about budget in SAP B1 or want to know how you can run your business better with SAP B1, reach out to us by phone or email info pioneerb1.

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