BUDGETING

A. Set up a budget for the following G/L Accounts:

Budget Name: 2015 Budget
G/L Account Code G/L Account Name Annual Budget
610000 Electricity GBP 30,000
610010 Water GBP 20,000
610030 Telephone GBP 5,500
610031 Mobile GBP 10,000

SOLUTION:
Set Budget Initialization in the General Settings of the Administration Module
Go to Administration > System Initialization > General Settings > Budget tab
Make sure that Budget Initialization check box is checked
For a document that deviates from the budget, Click Warning button
Purchase Orders, Goods Receipt PO and Accounting checkboxes should be checked

Set up the new G/L Accounts as budget relevant

Choose Financials  Chart of Accounts
Choose the Operating Cost drawer
Click 610000 Electricity to highlight the G/L Account
Click Account Details
Choose Relevant to Budget then Click Update, Update then OK.

Create a new Budget Scenario following the details below:

Go to Financials  Budget Setup  Budget Scenarios
Budget Scenario window appears, select 01.01.15 in the fiscal year drop down list.
Right click, select Add Row.
Edit Main Budget to 2015 Budget
Click Update. Click OK
Then Go to Financials >Budget Setup > Budget
Budget Scenario Definition window appears
Select 2015 Budget - 01.01.15 in the Scenario drop down list.
Put an "x" mark on the Operating Costs only.

Click OK
Budget Scenario-Setup window appears
Click Display Accounts with no Budget. Post the following amounts in the Debit fields of their respective accounts.
Account Name Annual Budget
Electricity GBP 30,000
Water GBP 20,000
Telephone GBP 5,500
Mobile GBP 10,000
Click Update.
Choose Yes to all to confirm the system message, then click OK, then Cancel.
 B. Record the payment of the following expenses from last month. The expenses below were paid on the
last day of the previous month.
G/L Account Code G/L Account Name Last Month's Expenses
610000 Electricity GBP 2,600
610010 Water GBP 1,500
610030 Telephone GBP 500
610031 Mobile GBP 800

SOLUTION:
Go to Banking  Outgoing Payments  Outgoing Payments
Choose Account
Enter the following requirements:
Account Name Annual Budget
Posting Date <Last Day of Previous Month>
Due Date <Last Day of Previous Month>
Document Date <Last Day of Previous Month>

G/L Account Account Name Net Amount

610000 Electricity GBP 2,600
610010 Water GBP 1,500
610030 Telephone GBP 500
610031 Mobile GBP 800
Right Click, Choose Payment Means
Choose the Cash tab.
Enter 160000 in the G/L Account field
Click the Total field.
Select CTRL + B to copy the payment amount to the Total field. You can also right click on the Total field and
choose copy balance due.
Choose OK.
Choose Add, then Add again.
 C. Record the payment of the following Expenses for the current month.

G/L Account Code G/L Account Name Last Month's Expenses

610000 Electricity GBP 2,450
610010 Water GBP 1,510
610030 Telephone GBP 465
610031 Mobile GBP 900

SOLUTION:
Go to Banking  Outgoing Payments  Outgoing Payments
Choose Account
Enter the following requirements:
Account Name Annual Budget
Posting Date <Today's Date>
<Today's Date> <Today's Date>
Document Date <Today's Date>

G/L Account Account Name Net Amount

610000 Electricity GBP 2,450
610010 Water GBP 1,510
610030 Telephone GBP 465
610031 Mobile GBP 900

Right Click, Choose Payment Means

Choose the Cash tab.
Enter 160000 in the G/L Account field
Click the Total field.
Select CTRL + B to copy the payment amount to the Total field. You can also right click on the Total field and
choose copy balance due.
Choose OK.
Choose Add, then Add again. Click Cancel.

C. Generate the Annual Budget Report for Electricity, Water, Telephone and Mobile.
Go to Financials Financials Reports  Budget Reports Budget Report
Choose 2015 Budget on the Scenario field, then choose Annual Report.
Put an "x" mark on the Operating costs only.
Click Execute.
On the Budget Report window, Choose Level 5.

D. Generate the Monthly Budget Report for Electricity, Water, Telephone and Mobile.
Go to Financials Financials Reports  Budget Reports Budget Report
Choose 2015 Budget on the Scenario field, then choose Monthly Report.
Put an "x" mark on the Operating costs only.
Click Execute.
On the Budget Report window, Choose Level 5.