Budgeting

Budgeting

Overview 

Budgeting in iVendNext helps control costs, allocate resources, and support financial stability. You can set budgets by Cost Center, Project, or custom dimensions. Whether planning yearly or monthly, these tools help prevent overspending and keep your financial goals 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.


  1. 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.


  1. 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.


  1. 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.


  1. 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.


  1. 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

Some of the key benefits are:


  • 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.



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