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 .
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