Defining Budget Title

Budget Definition

A budget is a formal statement of estimated income and expenses based on future plans and objectives. In other words, a budget is a document that management makes to estimate the revenues and expenses for an upcoming period based on their goals for the business.

Prerequisite

• Institute finance policy should be created.
• Financial year should be created.
• Ledgers and groups should be created.

Roles

Finance Admin

Path

Budget » Operational Budget

Purpose

1.     Able to add budget title with respect to financial year.

2.     Able to create groups under each budget title.

3.     Able to associate departments and cost centers to created groups.

4.     Groups can be made finance policy wise or individual department wise, as per the requirement.

5.     If attach employee salary is CHECKED, the salary budget amount is calculated on the basis of the current salary books and appears in the budget.

6.     Any cost center which is not a separate department like “MDP” etc. can be declared as a cost center.

7.     Research projects can also be added as cost center.

8.     Any income received in the form of funding to research project will also be associated.