Budgeting and the general ledger

BUDGETINGAND THE

GENERAL LEDGER

Trainer:David Michael

Title:Accounting Trainer

Phone:877-359-5492 Ext: 1225

Email:[email protected]

Discuss the Timing of a Budget Creation When do you start a budget Fiscal Year Ends June 30th. Begin sometime in April or May.

General Ledger Control of Funds – Authorization for Budget Preparation Which Funds will you be budgeting Opening a Fund for Budgeting vs. Opening a Fund for Posting

Budget Overview – Who does what (User View’s) Who is going to have access to the Budget Granting access to Site Managers, but limiting their access to

only their Fund

What will we cover?

What will we cover? Basic Budget Creation

Starting a Budget Managing an Initial Budget What happens if you need to add new GL Account Numbers after

starting a Budget Can you turn off individual GL Account Numbers no longer needed?

Export to Excel and manipulation Exporting a Budget to Excel and entering values / formula’s

Import back How to import back into the Budget Management Module

Review and Approval Process Who approves the Budget How to track when it was sent to who approves the Budget

WHAT WE WILL COVER When does the Budget update the General

Ledger for ReportingWhat is the Final Step in making a Budget Active

Revisionswhat happens if the numbers have to change

How to see if there is any money remaining when ordering from Purchase OrdersHow to lookup the remaining balance available

while adding items to a Purchase Order.

PREPARING A FUND FOR BUDGETING

Show the General Ledger Function of Opening a Fund for Budgeting. Discuss the difference between Open for Budgeting and Open for Posting.

USER VIEW SETTINGS

Select Views to limit a user access to budgets

USER VIEW SETTINGS

Select Plus (+) to Add a user View

USER VIEW SETTINGS

Select the User

And check which Funds the user has access to see and manage

USER VIEW SETTINGS User View

When you limit a User ID to specific Funds, then the user can only see and thus modify or report on Budgets that are linked to the Fund the user has rights to.

If you leave a user off the View settings, but they have access to the Budget module, they will have access to All budgets.

ADDING A NEW BUDGET Timing – When do you start planning for the new

budget, and why is this important. Dates and Periods. When you are starting a new

budget you need to remember what is the Budget Year and Current Year.

Example: My fund fiscal year end is June 30. I am wanting to begin developing the Budget for the Fiscal Year Ending June 30, 2013.

This fiscal year will begin on July 1, 2012. I will start planning this budget around the end of April or beginning of May, 2012.

ADDING A NEW BUDGET Timing continued.

When adding a new budget, the program looks at the Prior Year. This refers to the Fiscal Year prior to the one covered by the Budget, or the Fiscal Year ending June 30, 2012.

The program also asks for a Reporting Month. This refers to the last month in the Ledger for the fund that has been “completed”. If I begin planning the budget at the end of April, have I

completed and balanced March? If so, this would be my Reporting Month. This month is used to project out the full Fiscal Year Actual for comparison.

ADDING A NEW BUDGET

Select Manage Budgets

ADDING A NEW BUDGET

This will list all Current Open Budgets that are available. If you are just starting, there should be nothing here yet.

Select the Plus Icon to Add a New Budget

ADDING A NEW BUDGET

This starts a 3 step wizard to create the initial Budget.

ADDING A NEW BUDGET If starting a new budget with no prior budgets,

you must select Copy From None. This is a required field.

Next, is the Fiscal Year Date Range. NOTE: These two dates are Fiscal Year Ending MM/DD/YYYY through Fiscal Year Ending MM/DD/YYYY. If this Budget is for a Single Fiscal Year, you enter the same Year in both fields.

ADDING A NEW BUDGET Basis to Create the New Budget

Current Year Budget Current Year Actual Greater of Current Year Actual or Budget Zero

If this is the First Budget, i.e. Copy from None, then just select Zero. If, however, you are copying from a Prior Budget, you may have the program Pre-fill the new budget with one of the options.

ADDING A NEW BUDGET Factor.

This is an across the board increase or decrease of all pre-filled values by a user entered percentage. If you want to Increase the new budget compared to the prior year data by 3%, enter a positive 3 here. Entering a negative 2 (-2.00) will result in a Decrease by 2% of all calculated and pre-filled values from the prior year data.

ADDING A NEW BUDGET Last Reporting Month.

This is the Month you are using to base the new budget amounts on. Select a month in the Current Fiscal Year that is completed.

Example: My fund fiscal year end is June 30. I am wanting to begin developing the Budget for the Fiscal Year Ending June 30, 2013.

This fiscal year will begin on July 1, 2012. I will start planning this budget around the end of April or beginning of May, 2012. If I begin planning the budget at the end of April, have I completed

and balanced March? If so, this would be my Reporting Month. This month is used to project out the full Fiscal Year Actual for comparison.

ADDING A NEW BUDGET

Select Start to begin

ADDING A NEW BUDGET

This brings you to Step 2 of 3 of the Add Budget Wizard. Here you select the Fund and enter the Title of the Budget.

ADDING A NEW BUDGET

Start by Selecting

the Fund for this

Budget from the

Drop Down List

ADDING A NEW BUDGET

Enter a Description. NOTE: Every Description for All Budgets must be unique. The format here is what I have found works the best for me.

ADDING A NEW BUDGET

Select Next when you are ready

ADDING A NEW BUDGET

This brings you to the Final step in the Wizard, the Confirmation screen. If the information showing is correct, Select Finish to create your initial Budget.

ADDING A NEW BUDGET

You have a New Budget ready to enter or update the Budget Amounts.

MANAGING YOUR BUDGET


Enter the Annual

Budget Amount

And pick the Distribution Scheme


Or, you can enter the Budget Amount directly into the

appropriate month


You can also select to Export your Budget to

Excel and fill in the amounts quickly.

MANAGING YOUR BUDGET If you export your Budget to an Excel spreadsheet,

you need to re-import the budget prior to making any other changes such as submitting to the Board or approving the Budget.


From the Wizard Hat, select Submit Budget to

Board to start the approval tracking.


This moves the Options down to allow selection of only those that apply

MANAGING YOUR BUDGET As you select the Next item in the approval process,

the available options change. If you have entered Submit Budget to Board, the available

options change to: Approved Budget to Board or Reject Budget to Board

If you Reject, the only options available will be to: Create a Budget Revision or Start a new Budget

If you select Approved Budget to the Board you have: Submit Budget to Agency or Post Budget


Each step of the Approval options will walk you through a 2 step wizard. On Step 1, you can enter the Date of the action and a series of notes about that action.

MANAGING YOUR BUDGET Selection of Post Budget makes this Budget record

the current Active Budget for this fund. This limits any changes you may need to make to be part of a Budget Revision.

Once a Budget is Active, it is part of any Financial Statements printed from the General Ledger Reports.

Budget amounts are also locked and cannot be changed.

SUBSEQUENT YEAR BUDGETS When creating budgets for years after the initial

budget year, you can copy from the prior year actual. After the First Budget for each Fund is created, all

subsequent budgets can be defined with the starting point of the prior year’s budget.

When starting these, you can pre-fill the budget with either the Current Year Actual projected to the end of the year, or the Current Year Budget, or the Greater of either of these.

Start in the same place, by clicking on the Plus Sign in Maintain Budgets to create a new Budget.

SUBSEQUENT YEAR BUDGETS

Select a Prior Budget to Start from

Select how to Pre-fill the Budget Amounts

Select a Percent to Increase or Decrease the Pre-filled amount

SUBSEQUENT YEAR BUDGET

Name this Budget

And select Next to Review


Sometimes you forget the simplest thing. If you forgot to Open the Fund for future years, you will get this message. All you have to do is Open General Ledger, Select the Closing button, and from the Wizard Hat, select Open Fund for Budgeting. Choose the correct Fund and finish the wizard.


Open Fiscal year for Budgeting


Pick the Year you are budgeting


Pick the Fund (s) you are creating a Budget For and select Next. On the Last step of the Wizard, confirm your choices. Then you can go back to the Budget program and Finish creation of your next year’s Budget.

SUBSEQUENT BUDGET YEAR

New Budget Created for the New year

SUBSEQUENT BUDGET YEAR

Budget Amounts are Pre-filled using the Greater of Prior Year Budget or Prior Year

Actual

SUBSEQUENT YEAR BUDGET From this point, managing a Budget is the same for

creating the initial and for managing any subsequent year budgets.

You can go to each account individually or export to Excel to manage amounts.

You will need to process the Budget through the same approval steps as outlined previously.

This creates a New Budget for the New Year. The original Budget for the prior year is left as is and can be reviewed or revised as needed.

CHECKING BUDGET AVAILABILITY In the Purchase Order module, you can check to

see if there is any remaining Budget left prior to approving a Purchase Order.

This can be done on each line item within the Purchase Requisition.

This does require the GL Account Number the Purchase Requisition is being charged against to be listed in the Requisition.

CHECKING BUDGET AVAILABILITY

First, Select Requisition


Highlight your Purchase Order and Select Edit (Pencil Eraser Icon)


Select the Red check mark to Check Budget Remaining

CHECKING BUDGET AVAILABILITYThis will show the Amount of This PO,

by Account Line Item, and the Available budget remaining.

What Questions would you like to ask?

David Michael

Budgeting and the General Ledger

877.359.5492 Ext: 1255

[email protected]

Budgeting and the general ledger

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