Budget Methods
On the G/L Budget Maintenance screen, you select a budget method to specify budget method options that are used to calculate budget period amounts.
For more information about using this screen, see G/L Budget Maintenance Screen.
| Option | How to Use | How G/L Calculates Budget Amounts |
|---|---|---|
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Base, Amount Increase |
When you select this option, the Base Amount and Amount Increase fields appear.
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General Ledger uses the base amount you specify as the Period 1 Budget Amount.
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Base, Percent Increase |
When you select this option, the Base Amount and % Increase fields appear.
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General Ledger multiplies the base amount by the percent increase to calculate the Period 1 budget amount.
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Copy, As Is |
Select this option to copy or add the amounts in each period of the Inquiry Amount column into the corresponding periods of the Budget Amount column. |
General Ledger copies the exact amounts in each period of the Inquiry Amount fields into the corresponding periods of the Budget Amount fields. |
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Copy, Amount Increase |
When you select this option, the Amount Increase field appears. In this field, enter the amount by which the period amounts should be increased. |
General Ledger adds the period amount in each Inquiry Amount field to the amount in the Amount Increase field, and then copies the result into the Budget Amount field for the corresponding period. |
|
Copy, Percent Increase |
When you select this option, the % Increase field appears. In this field, enter the percentage by which the period amounts should be increased. |
General Ledger multiplies the amount in the Inquiry Amount field for each period by the percentage in the % Increase field, and then copies the result into the Budget Amount field for the corresponding period. |
|
Copy, Prorated Spread |
When you select this option, the Spread Amount field appears. In this field, enter the amount you want to prorate to the individual periods. Note: In a multicurrency system, you must enter the source and functional equivalents of other currencies separately if you want both sets of numbers. To calculate the functional equivalent from a source amount, inquire on the source amount, and then use the percent increase budget method. If the rate is less than one, use a negative percent increase (calculated by subtracting the rate from 1). |
General Ledger performs a weighted distribution of amounts based on:
The system uses the following equation to compute each period's budget amount: (Period inquiry amounts x Spread amount for period) / Sum of amounts (all periods) In other words, a ratio (weight factor) is calculated by dividing each individual period’s inquiry amount by the sum of the inquiry amounts for all periods. That weight factor is then multiplied by the spread amount you specify to arrive at each period’s budget amount. |
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Fixed Amount |
When you select this option, the Fixed Amount field appears. In this field, enter a fixed amount. |
General Ledger adds the fixed amount you specify to the Budget Amount field for each period. |
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Spread Amount |
When you select this option, the Spread Amount field appears. In this field, enter an spread amount. |
General Ledger distributes the spread amount you specify evenly across the Budget Amount fields for all periods. Note: If the amount cannot be divided evenly, the remainder is added into the last period. |
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