Cost Centre Budget in Tally

Cost Centre Budget in Tally

Budgets of Accounts Groups & Account Ledgers have been discussed earlier.  Cost Centre also have been discussed earlier . 

When Cost Centre is activated, at Budget  Entry  set up, you get another column Cost Centre  to include  Cost Centre figures also, apart from Group & Ledger.

Cost Centre Budget  Activation in Tally

At Cost Centres column, Set Yes to get Cost Centre Budget entry screen.

Cost Centre Budget Entry Set Up in Tally

Cost Centre Budget option set up in Tally

At Budget Allocation screen, enter as follows

• Cost Centre Name : At Cost Centre column, select the Cost Centre (Pres Alt+C to create a new Cost Centre)
• Cost Centre Budget Amount: Enter the Budget Amount as below
  • Cost Centre Expenses Budget: At Expenses column, enter the Expenses Budget Amount for the selected Cost Centre.
  • Cost Centre Income Budget: At Income column, enter the Income Budget Amount for the selected Cost Centre.

Cost Centre Budget Entry in Tally

This way continue to enter Cost Centre Budget Figures for other Cost Centres successively. To terminate entry, press <enter>at the blank Cost Centre Name field (do not select any Cost Centre).

Cost Centre Budget of Accounts Groups in Tally

To enter Cost Centrewise Account Group Budget, at Budget Entry set up, set Yes at Group  to get Account Group / Cost Centre Budget entry screen.

Cost Centre Budget of Account Group in Tally

Now Enter Cost Centrewise break up of Account Group Budget, as follows :

• Account Group : At Account Name, select the Account Group (or pres Alt+C) to create a new Account Group
• Cost Centre : At Cost Centre, select the Cost Centre (pres Alt+C to create a new Cost Centre)
• Balance Type: At Type of Budget  column, select the Balance Type from the list, as follows:
  • Budget for Closing Balance:, Select On Closing Balance to create Budget for Closing Balances (normally used for Liabilities & Assets types for accounts, like Loans, Debtors / Creditors accounts).
  • Budget for Transaction: Select On Net Transactions to create Budget for Net transactions (normally used for Income & Expenses Account, like Expenses, Sales, Purchase etc).
• Budget Amount:At Amount  field, enter the Budget Amount for the selected Account Group

This way, continue to enter Budget Figures for each combination of Account Group & Cost Centre successively. To terminate entry, press <Enter> at the blank Account Name field (do not select any Account Group).

Cost Centrewise Budget of Accounts Ledgers in Tally

In the same way as Cost Centrewise Account Groups Budget Entry, you may enter Cost Centrewise Budget of Ledger Accounts.

To enter Cost Centrewise Ledger Budget, set Yes at Ledger and Cost Centre column to get Account Ledger / Cost Centre Budget entry screen.

Cost Centre Budget of Account Ledger in Tally

Now Enter Cost Centrewise break up of Account Ledger Budget, as follows :

• Ledger Account : At Account Name, select the Ledger Account (pres Alt+C) to create a new Account Ledger
• Cost Centre : At Cost Centre, select the Cost Centre (pres Alt+C to create a new Cost Centre )
• Balance Type: At Type of Budget  column, select the Balance Type from the list , as follows:
  • Budget for Closing Balance: Select On Closing Balance to create Budget for Closing Balances (normally used for Liabilities & Assets types for accounts, like Loans, Debtors / Creditors accounts).
  • Budget for Transaction: Select On Net Transactions to create Budget for Net transactions (normally used for Income & Expenses Account, like Expenses, Sales, Purchase etc).
• Budget Amount:At Amount field, enter the Budget Amount for the selected Account Group

This way, continue to enter Budget Figures for multiple Account  Ledger successively. To terminate entry, press <Enter> at the blank Account Name field (do not select any Account Group).

You may also select Not Applicable at Cost Centre, in that case, it becomes a Group / Ledger Budget

Vouchers entry with Cost Centre Details

In Voucher entry, you have to enter the Cost Centre wise allocation for each Ledger Account in the Voucher, which constitute the Actuals figures in the Budget Reports.

Payment Voucher with Cost centrewise allocation in Tally

Cost Centre entry in Reversing Journal Voucher for Scenario Management

Reversing Journal Voucher with Cost centrewise allocation in Tally

Cost Centre Budget Variance Report in Tally

As explained for Account Group / Account Ledger Report, you may get the Cost Centre Budget figures from Category Summary.

Cost Category Budget Variance Report  in Tally

Cost  Category Budget Variance  in Tally

Category Summary has been explained earlier.

At  Category Summary (Display>Statement of Accounts>Cost Ceres>Category Summary), click B:Budget  Variance button to select the Budget  from the list  to get Budget Variance Report

Cost Category Summary with Budget / Scenario Figures

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