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How to Divide your Budgets over the Expense Accounts

Budgets can be allocated to ledger accounts and distributed across the periods of the fiscal year. This can be done linearly, based on the realized figures from the previous year, or according to BCO working days. Cost centers can be utilized in the distribution process.

 

The list of ledger budgets is compiled from cost accounts. After all, you want to budget your expenses. Total amounts are distributed per ledger account and can optionally be allocated to underlying cost centers. Distributing budgets across cost accounts is part of a step-by-step plan to set up BCO. This article covers step 4.

 

Adding Ledger Accounts

You can budget your expenses for a fiscal year in the Ledger Budgets module. You will have a list showing budgets per ledger account. Using the Ledger Budget

button, you can add a line to the list. Then, select the available ledger accounts in the Ledger Account field. In addition to the Total column, the list includes columns for the periods of the fiscal year.



Distributing Total Amount

You enter the total amount of your budget for each ledger account in the Total column, based on your profit and loss statement. You can then distribute this total amount over the available periods of the fiscal year using the Distribute Amount

button, according to one of the following distribution methods:

  • Linear: The distribution is the total amount divided by the number of periods. The Amount field allows manual adjustment of the total amount.
  • Based on realized figures from the previous year: The distribution will occur based on realized figures from the preceding fiscal year. Data must be available for this. The Percentage field enables adjusting the budget from the previous fiscal year by a percentage.
  • Based on BCO working days: The distribution is executed based on the distribution of BCO working days. In the Number of Periods Shifted field, the budget can be shifted in relation to the period that considers BCO working days.

Knowledge Center How to Organize the Workable Days and Hours

Please note!
After applying the distribution method 'Based on realized figures from the previous year,' it is no longer possible to input a budget in the list. You can use the 'Percentage' option to increase or decrease the budgets by a certain percentage.



ledger accountperiodfiscal yearbudgetprofit & losscost centerpercentageworking dayworkable hoursdividing methodtotal