Manage Budgets

Manage Budgets

Create budgets, track spending, and compare actual vs planned expenses.

Time: 15–30 minutes per budget Module: Account Budget Permissions: Accountant or Budget Manager

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Prerequisites

• Chart of accounts configured
• Analytic accounts defined
• Budget positions created
• Access to Accounting menu

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Overview

The Budget Management system enables:

• Budget creation and tracking
• Department-wise budgeting
• Budget position definitions
• Actual vs planned analysis
• Variance reporting
• Multi-period budgets
• Budget alerts

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Budget Structure

Budget
   └── Budget Lines
         ├── Budget Position (Accounts)
         ├── Analytic Account (Cost Center)
         ├── Period (Date Range)
         └── Planned Amount

Component	Description
Budget	Overall budget document
Budget Position	Group of GL accounts
Budget Line	Individual budget allocation
Analytic Account	Department/cost center

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Steps

1. Create Budget Positions

Define account groups for budgeting:

1. Navigate to Accounting → Configuration → Budget Positions
2. Click New
3. Configure position:

Field	Action
Name	Position name
Accounts	Select GL accounts
Company	Select company

4. Click Save

Common Positions:

• Salary Expenses
• Operating Expenses
• Marketing Costs
• Travel Expenses
• Equipment Purchases
• Training Costs

2. Create Budget

1. Navigate to Accounting → Budgets → Budgets
2. Click New
3. Configure budget:

Field	Action
Budget Name	Descriptive name
Responsible	Budget owner
Start Date	Budget period start
End Date	Budget period end
Company	Select company

4. Click Save

3. Add Budget Lines

Define allocations:

1. Open budget record
2. Navigate to Budget Lines tab
3. Click Add a line
4. For each allocation:

Field	Action
Budget Position	Select position
Analytic Account	Cost center
Start Date	Line period start
End Date	Line period end
Planned Amount	Budget amount

5. Add all lines
6. Click Save

4. Confirm Budget

Activate the budget:

1. Review all lines
2. Verify totals
3. Click Confirm
4. Budget becomes active

State	Description
Draft	Being created
Confirmed	Active budget
Revised	Under revision
Done	Period completed

5. Monitor Budget Usage

Track spending:

1. Open budget

2. View lines with:

   • Planned Amount
   • Practical Amount (Actual)
   • Theoretical Amount
   • Percentage used

3. Identify variances

6. Analyze Variances

Compare planned vs actual:

1. Navigate to Accounting → Reporting → Budget Analysis
2. Set parameters:

Field	Action
Budget	Select budget
Period	Date range
Analytic	Filter by dept

3. Generate report
4. Review variances

7. Revise Budget

If adjustments needed:

1. Open budget
2. Click Set to Draft
3. Modify lines
4. Re-confirm

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Field Reference

Budget Position (account.budget.post)

Field	Technical Name	Type	Required	Description
Name	name	Char	Yes	Position name
Accounts	account_ids	Many2many	No	GL accounts
Company	company_id	Many2one	Yes	Company

Budget (crossovered.budget)

Field	Technical Name	Type	Required	Description
Budget Name	name	Char	Yes	Budget name
Responsible	user_id	Many2one	No	Owner
Start Date	date_from	Date	Yes	Period start
End Date	date_to	Date	Yes	Period end
State	state	Selection	Yes	Budget status
Budget Lines	crossovered_budget_line	One2many	No	Allocations
Company	company_id	Many2one	Yes	Company

Budget Line (crossovered.budget.lines)

Field	Technical Name	Type	Required	Description
Budget	crossovered_budget_id	Many2one	Yes	Parent budget
Budget Position	general_budget_id	Many2one	No	Account group
Analytic Account	analytic_account_id	Many2one	No	Cost center
Analytic Plan	analytic_plan_id	Many2one	No	Plan
Start Date	date_from	Date	Yes	Line start
End Date	date_to	Date	Yes	Line end
Paid Date	paid_date	Date	No	Payment date
Planned Amount	planned_amount	Monetary	Yes	Budget amount
Currency	currency_id	Many2one	No	Currency

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Educational Budget Example

Annual Operating Budget

Budget: FY 2024 Operating Budget
Period: Jan 1 - Dec 31, 2024

Department: Computer Science
├── Faculty Salaries: $500,000
├── Lab Equipment: $50,000
├── Software Licenses: $20,000
├── Research Grants: $30,000
└── Travel: $10,000
Total: $610,000

Department: Library
├── Staff Salaries: $200,000
├── Book Acquisitions: $100,000
├── Digital Resources: $50,000
└── Maintenance: $20,000
Total: $370,000

Capital Budget

Budget: Capital Expenditure 2024
Period: Jan 1 - Dec 31, 2024

├── New Lab Building: $2,000,000
├── IT Infrastructure: $500,000
├── Sports Facility: $300,000
└── Transportation: $200,000
Total: $3,000,000

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Views Available

View	Features
List	All budgets
Form	Budget details
Pivot	Analysis table
Graph	Visual charts

Budget Dashboard

Shows:

• Total budgets
• Budget utilization
• Over-budget alerts
• Department comparison

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Reports

Report	Description
Budget Analysis	Planned vs actual
Variance Report	Differences
Department Summary	By cost center
Period Comparison	Month/quarter trends

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Troubleshooting

Issue	Cause	Solution
No actual data	No transactions	Post journal entries
Wrong variance	Date mismatch	Align periods
Cannot modify	Budget confirmed	Set to draft
Missing position	Not created	Create budget position
Zero practical	Wrong analytic	Check analytic account

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Best Practices

1. Realistic planning: Base on historical data
2. Regular monitoring: Review monthly
3. Variance analysis: Investigate deviations
4. Timely updates: Revise when needed
5. Department involvement: Include stakeholders
6. Documentation: Note assumptions

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Security Notes

Role	Capabilities
Budget Manager	Full CRUD
Accountant	Create and monitor
Department Head	View own department
Auditor	View all budgets

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Related Tasks

• Configure Accounting
• Manage Departments
• Process Fee Collection