BUDGETS – Budgets Proposed - Nominal

You can set up budget figures for each period of the year for some or all accounts. These are maintained using the options on this sub-menu.

There are a number of ways to create and update the budget figures on accounts:

Base this year’s figures on last year’s actual results, or on last year’s budgets

Enter the total budget value you want for the year, and ask the computer to divide these across the periods, either equally or based on a pre-defined model

Enter all the periods for the year one by one for each account

Import them from an external source such as a spreadsheet

Note

When you select the BUDGETS option a further menu of options is given.

Budget Factor Tables

In most companies both income and expenditure follows a seasonal trend of some nature during the year.You can define up to five budget factor tables in the nominal ledger System Profiles to provide period by period trend figures. You might define one for sales accounts, another for gross margin accounts, perhaps a third for wages and salary costs, and a fourth for marketing expenditure.

A budget factor table defines the percentages to apply to the annual budget figure for 12 or 13 periods (depending on the number of periods in your financial year). The percentages must sum to 100%. If you enter a budget figure for the year, and ask to allocate it according to a budget factor table, then the individual period budgets are calculated from the total budget times the budget factor for that period.

In the example below, a budget of £800,000 has been allocated across the 12 periods according to the budget factor table overleaf