Overview 

Budgeting is a fundamental financial planning tool that helps businesses control expenses, allocate resources effectively, and ensure financial stability. In iVendNext, budgeting is designed to be flexible and user-friendly, allowing you to set budgets against Cost Centers, Projects, or custom Accounting Dimensions. This feature ensures that your expenses remain within predefined limits, helping you maintain financial discipline and achieve your business goals.

Whether you’re planning for the next financial year or managing monthly expenses, iVendNext’s budgeting tools provide the necessary controls to prevent overspending and ensure that your financial plans are on track.

How to Create and Manage Budgets

Creating a budget in iVendNext is a simple and intuitive process. Here’s a step-by-step guide to help you get started:

1. Navigate to the Budget List
   To begin, go to: Home > Accounting > Cost Center and Budgeting > Budget.

2. Create a New Budget
   Click on New to create a new budget. You’ll be prompted to select what to budget against—Cost Center, Project, or an Accounting Dimension. This flexibility allows you to tailor your budget to specific areas of your business.

3. Select Accounts and Set Budget Amounts
   In the accounts table, select the income or expense account for which you want to set a budget. For example, if you’re setting a budget for telephone expenses, select the relevant account and enter the budget amount for the year.

4. Save and Submit
   Once you’ve entered the budget details, click Save and then Submit to activate the budget. Your budget is now ready to be used for tracking and controlling expenses.

Monthly Distribution of Budgets

iVendNext allows you to distribute your budget across months, ensuring that your expenses are evenly spread throughout the year. This feature is particularly useful for businesses that have seasonal fluctuations in expenses or revenues. Here’s how you can set up monthly distribution:

1. Define Monthly Distribution
   While creating or editing a budget, you can define a Monthly Distribution record. This allows you to allocate specific amounts to each month, ensuring that your budget aligns with your business’s cash flow needs.

2. Automatic Distribution
   If you don’t set a monthly distribution, iVendNext will automatically distribute the budget equally across all months. This is a great option if your expenses are consistent throughout the year.

Control Actions (Alerts)

One of the most powerful features of iVendNext’s budgeting tool is the ability to set Control Actions. These actions help you manage your budget effectively by providing real-time alerts when expenses are approaching or exceeding the budget. Control actions can be triggered in the following scenarios:

• Material Requests: When a material request is submitted.

• Purchase Orders: When a purchase order is submitted.

• Actual Expenses: When an expense is posted through a journal entry or purchase invoice.

You can set the following types of control actions:

1. Stop: Prevents users from submitting transactions that exceed the budget. This is useful for enforcing strict budget limits.

2. Warn: Displays a warning message but allows the transaction to be submitted. This is ideal for situations where you want to monitor spending but still allow flexibility.

3. Ignore: No action is taken, and no warning is shown. This option is useful if you want to track expenses without enforcing any restrictions.

Budget Variance Report

The Budget Variance Report is a powerful tool that helps you analyze how your actual expenses compare to your budget. This report provides valuable insights into your financial performance and helps you identify areas where you may need to adjust your spending. Here’s how to access and use it:

1. Navigate to the Budget Variance Report
   Go to: Home > Accounting > Cost Center and Budgeting > Budget Variance Report.

2. Analyze the Report
   The report provides a detailed comparison of budgeted vs. actual expenses for a selected period. You can view variances in monthly, quarterly, or yearly intervals. This allows you to track your financial performance over time and make informed decisions.

Key Benefits of Budgeting in iVendNext

• Expense Control: Prevent overspending by setting budget limits and receiving real-time alerts.

• Financial Planning: Plan your expenses and revenues for the next financial year with confidence.

• Flexibility: Set budgets against Cost Centers, Projects, or Accounting Dimensions to tailor your financial plans to your business needs.

• Detailed Reports: Use the Budget Variance Report to analyze your financial performance and make data-driven decisions.

Conclusion

Budgeting in iVendNext is a powerful feature that helps businesses maintain financial discipline and plan for the future. By setting budgets, distributing them across months, and using control actions, you can ensure that your expenses remain within predefined limits. The Budget Variance Report further helps you analyze and adjust your financial plans as needed, ensuring that your business stays on track to achieve its goals.

Whether you’re a small business or a large enterprise, iVendNext’s budgeting tools provide the flexibility and control you need to manage your finances effectively. Start using budgeting in iVendNext today and take the first step toward financial stability and growth.