Maaz Rasheed MalikOracle Functional

Consultant

WHAT IS BUDGET

An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.

Steps of Implementation.1. Creation of organization.2. Budget of budget.

We will click on Budgets > Define > Organization.

Enter Organization,Description,Display Sequence

Click on Ranges Button.

In this screen you can add ranges one line or multiple line.

Here we can define ranges from high to low.

We can set password click on SET PASSWORD.

Creating Budget versionA project can have more than one budget. Budget types distinguish the different budgets that you enter for a project. For example, one budget type may identify the approved cost budget and another type may be the forecast cost budget. You must classify every project budget you enter by a budget type.

Click Budget > Define > Budget

BUDGET CYCLE

Budget cycle1. Open Year.2. Enter/Modify Budget amount.3. Post amount.

We can open next year by clicking on OPEN NEXT YEAR.

o Note: Wait for the REQUEST to complete.

Budget Sources

Entering Amount1. Budgets amount Directly to system.2. Enter them through budget journals.

Amount MethodIn amount method we will simply go to budget amount screen and enter 100$ or if want to enter 150$ we will just over write it.

Journal MethodIt work differently you have to enter increment or the difference between the previous value and the new value e.g. the previous balance is 100$ and you want this balance to change from 100 $ to 150 $ in order to do that you will enter a debit of 50 $ and that will change the balance from 100 $ to 150 $. Similarly if you want to reduce balance from 100$ to 50$ you will enter a credit amount of 50$.

This screen is used to enter budget amounts Budgets > Enter > Amounts

Budget amount Screen

We can enter value directly or can enter in the SINGLE ROW MODE.

We can click on BUDGET RULES to define how amount divides.

3.Post Amount

Click on Inquiry > Amount.

Two types of balances1) Primary Balance Type (actual by default).2) Secondary Balance Type (budget by default).

Click On SHOW VARIANCE BUTTON

To compare actual numbers with budget numbers we will post a journal entry for which we have to open a period.

Setup > Open/Close

After period is open we will go to Journal.

Journal > Enter

Click on Post button.

We Will Go Back To Inquiry >Amount .

From this we can see the actual is 100 and Corporate is 100 but the Variance is 0. Variance is comparing with actual with the budgets.