Financial Budgets in Tally

Every Business has its objectives and goals. It must have an efficient mechanism to set its targets and appraisal of achievements in respect to the target. To exercise the Financial  Management controls, and optimally manage its financial resources, business must plan and create a Financial Budget.

Financial Budget Activation in Tally

In Tally, you may set independent Budgets for Account Groups, Ledger Accounts & Cost Centres and to track Budget Variance.

At Gateway, click F11: Features >Accounting Features to get Accounting Features screen.  At Budgets & scenario Management section of Accounting Features screen, set Yes at Maintain Budgets and Controls  to activate Budgets.

Financial Budgets Activation in Tally

Consequently you get Budgets  & Scenarios options at Account Info menu .

Accounts Info Menu in Tally

Accounts Budget Entry in Tally

Select GoT>Accts Infoto get Accounts Info Menu . At Accounts Info Menu .select Budget to get Budget  Menu. At Budget Menu, select Create to get Budget Creation screen .

Accounts Budgets Entry in Tally

At Budget Table Entry screen , enter as follows :

  • Budget Name:At Name, enter Budget Name.
  • Parent Budget:At Under , select the parent Budget, else select Primary (you must select Primary for the first Budget record created).
  • Periodical Budget Details : Enter the following details for each Budget Period
    • Budget Period:Enter the Start and End Date of the Budget period at From & To column, respectively.
    • Budget Account Type:At Set Alter / Budgets of column, set :
      • Group Budget : Yes at Groups column to get Group Budget Creation screen , else set No 
      • Ledger Budget : Yes at Ledgers column to get Ledgers Budget Creation screen , else set No 

Account Group Budget in Tally

At Budget Table entry screen , on  setting Yes at Groups column, you get  Accounts Groups Budget  entry screen to enter Group Budget for each Account Group, as explained below:

  • Account Group Name:At Account Name field, select the Account Group for which you like to enter the Budget figures (press Alt+C to create new Account Group)
  • 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

Group Budget Creation in Tally

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

Accounts Ledger Budget in Tally

At Budget Table entry screen, on setting Yes at Ledgers column, you get  Accounts Ledgers Budget  entry screen to enter Ledger Budget for Ledger Account

Accounts Ledger Budget Creation in Tally

This way, continue to enter Budget Figures for each Account Ledger successively. To terminate entry, press <Enter> at the blank Account Name field (do not select any Ledger Account ). The total of  Budget Amounts for  all Ledger Accounts under a Group, normally equals to the Budget Amount for the corresponding Group.

Financial Budget Variance Statements in Tally

Having set the Budgets and entering Vouchers as usual (which constitutes the Actuals), you may get Budget Variance Statements showing figures of Budgets, Actuals & Variance , from the following reports:

  • Trial Balance (Display>Trial Balance)
  • Group Summaries (Display > Account Books > Group Summary).

At the Report Display screen, click the B:Budget Variance button from the button bar and select the Budget Master record from List of Budgets at Budget screen to get the Budget Variance Report .

Budget & Variance details in Trial Balance in Tally

Trial Balance (Display > Trial Balance) has been explained earlier.  You may set the Important options:

  • Details : At  Trial Balance with Budget  Report  , click F1:Detailed button to get next level details .
  • Full Details :In Detailed Format  (with F1:Detailed  button), at Trial Balance Configuration screen, set Yes at  Expand All Levels in detailed format to show details (of  Budget, Actual & Variance)  of  all underlying Ledger Accounts of each Account Group
  • Percentage Figures :  At Trial Balance Configuration screen, set Yes at Show Percentages to get % of Variances and other figures

Other Buttons & Configuration options of Trial Balance are explained earlier.

Financial Budget Variance Reports set up in Tally

Financial Budget Variance Reports in Tally

Columnar Report with Comparative figures for various Periods / Companies have been discussed earlier. Here, we explain the additional steps relating to Budget Report.

Specified New Columns :  To get comparative columnar Budget  Reports, at Budget Report Display , Click C:New Column button, to get Column Definition screen .  Now set as follows:

  • Budget Figures : At  Type of Value to Show prompt, select the Budget Name from list of Budgets. The Budget figures would be shown in a new Column, to get a new columns for specified period / specified Company
  • Variance Figures : At Show Variance , set Yes to show Variance Figures also.

Auto Columns :  Auto Repeat Columnar Reports has been explained earlier. To get comparative columnar Budget Reports, at Budget Report Display, Click N:Auto Column button to get Auto Repeat Columns set up screen. At Repeat Using, select the Period / Company as follows:

  • Periodical Report  : Select the  repeating period frequency from the list to get Periodical break up of the figures
  • Inter Company Report  : Select Company from the list to get columns of each currently selected Companies,

Budget Report Column set up in Tally

Account Group Summary with Budget & Variance in Tally

Group Summary Display has been explained earlier. In the same way as Trial Balance, at Group Summary Display (Display > Account Books > Group Summary), click B:Budget Variance button to get Variance Analysis screen, to select the desired Budget Name from the list of Budgets created .

In the same way, you may get the Budget Figures using the Budget Variance Button in other Reports (where available) and the respective Configuration Options.

Click here to see PDF