Detail of 'how will i make a budget' in tally erp9?

Answer 1

To create a Budget in Tally.ERP 9

Go to Gateway of Tally > Accounts Info > Budgets > Create

1. In the Budget Creation screen enter a Name for your budget.

2. Select from the List of Budgets for Under field. You can have a hierarchical setup for budgets. In the List of Budgets, Primary is at the top of the hierarchy and you can create more primary budgets. Sub-budgets can be created under Primary budgets.

3. Enter the period of the budget in the From and To fields. The period entered can be a month, a year or any other period.

4. In Set/Alter Budgets of, select

• Groups - To create a budget for a Group of ledger accounts.

• Ledgers - To create a budget for Ledgers.

• Cost Centres - To create a budget for Cost Centres.

5. Accept to save.

To create a Budget in Tally.ERP 9

Go to Gateway of Tally > Accounts Info > Budgets > Create

1. In the Budget Creation screen enter a Name for your budget.

2. Select from the List of Budgets for Under field. You can have a hierarchical setup for budgets. In the List of Budgets, Primary is at the top of the hierarchy and you can create more primary budgets. Sub-budgets can be created under Primary budgets.

3. Enter the period of the budget in the From and To fields. The period entered can be a month, a year or any other period.

4. In Set/Alter Budgets of, select

• Groups - To create a budget for a Group of ledger accounts.

• Ledgers - To create a budget for Ledgers.

• Cost Centres - To create a budget for Cost Centres.

5. Accept to save.

You can modify a budget, using the alter option.

Go to Gateway of Tally > Accounts Info > Budgets > Alter

1. In the Budget Alteration screen, modify the fields as required. Change the period or change budgets of Groups, Ledgers and Cost Centres.

Note: By default, Set/Alter Budgets is set to No. Set this option to Yes to alter.

Deleting a BudgetTo delete a budget:

Go to Gateway of Tally > Accounts Info > Budgets > Alter

· Press Alt+D. Creating Budget for GroupsIn the Budget Creation/Alteration screen, set Yes in the Groups field, to set budgets for a group or group of ledgers.

In the Group Budget screen, select a Group from the List of Groups and enter Account Name.

Enter the cost centre for a group in Cost Centres field, select Not Applicable, if the budget is not for a particular cost center.

In Type of Budget, select from the following two types.

1. On Nett TransactionsSelect this option to monitor the transaction amounts and not the balances. Nett is net of debits and credits for the specified period. Nett transactions Budgets specified for a period automatically gets apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for the specified period after reducing the credits for the same period is considered without taking into account opening and closing balances. For example to compare transactions against budgets, especially revenue income and expenses On Nett Transactions can be selected. 2. On Closing BalanceSelect this option to monitor the balances of the Accounts and the not the transactions. i.e., each month will have the same budget value except that the actual Opening Balance is also taken into account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances and so on. For example to compare closing balance figures in final statements, especially Balance Sheet items like assets and liabilities, select Closing Balances.

Enter the budget amount in the Amount field.

Note : Group Budgets do not get apportioned whereas Ledger Budgets get apportioned for each month.

In the Budget Creation/Alteration screen, set Yes in the Ledgers field, to set budgets for ledgers. Creating Budget for Ledger AccountsIn the Ledger Budget screen, select a Ledger from the List of Ledgers and enter Account Name.

Budgets can also be defined for Cost Centres pertaining to Ledger Accounts wherein you can repeat the same ledger with another Cost Centre.

Enter the cost centre for the Ledger Account in the Cost Centre field. Select Not Applicable if the budget is not for a particular cost centre, but for the company.

In Type of Budget, select from the following two types.

1. On Nett TransactionsSelect this option to monitor the transaction amounts and not the balances. Nett is net of debits and credits for the specified period. Nett transactions Budgets specified for a period automatically gets apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for the specified period after reducing the credits for the same period is considered without taking into account opening and closing balances. For example to compare transactions against budgets, especially revenue income and expenses On Nett Transactions can be selected. 2. On Closing BalanceSelect this option to monitor the balances of the Accounts and the not the transactions. i.e., each month will have the same budget value except that the actual Opening Balance is also taken into account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances and so on. For example to compare closing balance figures in final statements, especially Balance Sheet items like assets and liabilities, select Closing Balances.

Enter the budget amount in the Amount field.

Note : Ledger Budgets get apportioned for each month. Creating Budgets for Cost CentresThe purpose of a budget is to control expenditure. You can create multiple budgets in Tally.ERP 9, each for a specific purpose such as for the Bank, for the Head Office, Marketing budgets, Finance budgets, and so on.

1. In the Cost Centres field in the Budget Creation/Alteration screen, set Yes to set budgets for cost centres.

2. In the Cost Centre Budget screen, select a Cost Centre from the List of Cost Centres and enter Cost Centre.

3. Enter a budget figure in Expenses for the cost centre.

4. Enter a budget figure in Income for the cost centre.

5. Enter Closing Balance.

6. Accept to save. Viewing Budget VarianceBudget Variance report can be viewed from Trial Balance, Group Summary, monthly summary etc. The Budget Variance button (Alt+B) is active, if Budgets feature is enabled and at least one budget created. Budget Variance displays Budgets, Actuals with percentage and Variance from the budget with percentage.

1. Budget Variance can be accessed from:

o Gateway of Tally > Display > Trial Balance to display the Trial Balance screen.

o Gateway of Tally > Display > Account Books > Group Summaryand select a group from List of Groups to display the Group Summary screen.

2. Click on Budget Variance (Alt+B) from the toolbar to display the Budget Analysis screen.

3. Select from the List of Budgets for Budgets/Scenario.

4. Three columns display Budget, Actuals and Budget Variance, respectively.

Note : Use Column functionality to add/ remove columns for Multi-period or Multi-budget Comparative Variance report.

Corporate budget Column displays the values of the Budget, which is defined.

Actuals Column displays the value of Actual Expenditure incurred.

Corporate Budget Variance displays the values of the Variance of the Actuals and Budgets. i.e., Budgets - Actuals = Variance .

Note: If the Budget Variance shows the negative value, then the actual expenditure value has exceeded the Budgeted values.