In Exercise C.1, using the Budget Maintenance window, you will modify Budget Set 1 data for account 4000.
EXERCISE C.1
Budget Maintenance window
1. Click G/L Accounts on the left navigation pane, then double-click the Budget Maintenance icon to open the Budget Maintenance window (Exhibit C-1).
EXHIBIT C-1
Budget Maintenance window
2. Note several things about this window:
The top portion of the window is where you enter information to generate amounts in the Budget Amount column. The bottom portion under Fiscal Set Lookup is where you enter information to generate amounts in the Inquiry Amount column.
In the Account fields, you can either type an account number or use the Finder button to locate a particular account.
The description of an account will be displayed beside the Account field when the account number is specified.
Computer Tutorial 3 Appendix C 3
In the Year fields, you can select any year established in the fiscal set of the general ledger.
In the Fiscal Set field, you can use the drop-down arrow to select either Actual or Budget numbers for the Inquiry Amount column.
3. Enter 4000 in the Account field. Ensure 1 appears in the Budget Set field, and 2010 appears in the Year field.
4. Click the Go button (the double arrows (») to the right of the Currency type field). Amounts should appear in the Budget Amount column as shown in Exhibit C-2.
EXHIBIT C-2
Budget Amount column showing amounts
5. In the Account field in the Fiscal Set Lookup section, enter 4000. Ensure Actuals appears in the Fiscal Set field, and 2009 appears in the Year field.
6. Click the Go button (») to the right of the Currency Type field. Amounts should appear in the Inquiry Amount column as shown in Exhibit C-3.
EXHIBIT C-3
Enquiry Amount column showing amounts
7. You are now able to modify Budget Set 1 based on Actual 2009 data.
8. Leave the Budget Maintenance window open for the next section.
The Budget Maintenance window is used to create or modify monthly budget amounts for an account. Eight methods are provided under the Budget Method portion of the window. In addition, you can simply click the Budget Amount you want to adjust, and change it by direct entry.
Explanations for the eight budget methods follow:
Fixed amount
When you select this option, a Fixed Amount field appears. You enter an amount which the system enters in (or adds to) the Budget Amount fields for each period.
Spread amount
When you select this option, a Spread Amount field appears. You enter an amount which the system distributes evenly across the Budget Amount fields for each period. If the amount does not divide up evenly, the remainder is added into the last period.
Base, Percent Increase
Enter a base amount and an incremental (or decremental) percentage. The base amount will be entered for the first fiscal period. The amount for other periods will be calculated based on the previous period’s amount multiplied by the percent increase or decrease.
Base, Amount Increase
Enter a base amount and an incremental (or decremental) amount. The base amount will be entered for the first period. The amount for other periods will be calculated based on the previous period’s amount plus the amount increase or decrease entered.
Computer Tutorial 3 Appendix C 5
Copy, As Is
The program copies the amounts in the Inquiry Amount fields to the Budget Amount fields without modification.
Copy, Percent Increase
The program copies the amounts from the Inquiry Amounts fields to the Budget Amount fields, with each Budget Amount field increased or decreased by the percentage entered.
Copy, Amount Increase
The program copies the amounts from the Inquiry Amount fields to the Budget Amount fields, with each Budget Amount field increased or decreased by the amount entered.
Copy, Prorated Spread
The program performs a weighted distribution of amounts based on the period amount in the Inquiry Amount column, the sum of period amounts in the Inquiry Amount column, and the amount you specify in the Spread Amount field. The system uses the following equation to compute each period’s budget amount:
Period inquiry amount × Spread amount = Budget amount Sum of inquiry amounts for period for period
for all periods
Explanations for the buttons at the bottom of the Budget Maintenance window follow:
Add button: adds the new budget information. Save button: saves changes to an existing budget set. Delete button: deletes a budget fiscal set.
Add to button: adds the amounts you are calculating or copying in the Budget Method box to
the existing amounts that are already in the Budget Amount column.
Replace button: replaces the amounts in the Budget Amount column with the amounts being
copied or calculated from the selected Budget Method.
Clear button: clears all the amounts in the Budgeted Amount column and reset them to zero.
This does not delete the fiscal set and will not permanently change the amounts unless you click the Save button.
EXERCISE C.2
1. You should have the Budget Maintenance window open. It should look like Exhibit C-3. If not, repeat Exercise C.1.
2. Click the Fixed Amount radio button under Budget Method. Enter -400,000 in the Fixed Amount field. Click Replace. Note that -400,000 appears in the Budget Amount column for every period.
3. Click the Spread Amount radio button. Enter -6,000,000 in the Spread Amount field. Click Replace. Note that -500,000 appears in every period (that is, the 6,000,000 was spread among all periods.)
4. Click the Add to button. Note the Budget Amount column for every period increased by 500,000 (the amount of the per-period spread amount) so that the amount is now –1,000,000.
5. Click the radio button next to Copy, As Is. Click Replace. Note the amounts from the Inquiry Amount column have been copied to the Budget Amount column. Clicking Add to doubles the amount in the Budget Amount column.
6. In this manner, you can select different Budget methods and have the amounts calculated for you. You can enter an amount directly into the Budget Amount column at any time. Click Clear to start over. This does not delete, just simply clears the field. When satisfied with your changes, you would click Save. To preserve the original budget set, you should close the window without saving.
Note:
When specifying an amount, pay attention to the normal balance of an account. For example, using Sales, which is a revenue account, you must add a negative number to increase the amount, as the normal balance is a credit.