A budget is a forecast (estimate) of cost, expenditure or /and revenue for a specified period of time. it may include one or mare accounting years. It is used to major the achievement of the company's goal or objectives.
An encumbrance is part of the budgeted amount that prevents the user from exhausting their budget amounts. when a user's expense is extending into the encumbrance amount an alert will be generated so that management can adjust the budgeted amount.
Use budgeting to enter estimated account balances for a specified range of periods. You can use these estimated amounts
- to compare actual balances with projected results, or
- to control actual and anticipated expenditures.
General Ledger gives you a variety of tools to create, maintain, and track your budgets, including the ability to upload budget amounts from your spreadsheet software.
Entering Budget amount
Oracle GL provides many methods to enter budget data, depending on your specific organization needs. When you define a budget, you choose whether to require budget journals for your budget. If you enabled the require budget journal flag for your set of books, this option will already be selected and cannot be changed.
When you require budget journals, you can only use budget entry methods that create journals, namely budget journals, mass budgets, budget transfers, consolidation of budget balances, and the application desktop integrator’s journal wizard.
JE : Budget Journals, MassBudget Journals, Journal Wizard and Transfer budget Amounts
Not JE : Budget Amounts, Budget Formulas, Budget Wizard and Upload Budgets
General Ledger supports a variety of budgeting methods that facilitate budget entry and reporting. You can plan your budget setup according to the method that best meets your budgeting needs. Creating Budget Formulas to Allocate Budget Amounts
- Creating Budget Formulas to Allocate Budget Amounts
- Creating a Flexible Budget
- Using Mass Budgeting
- Using Top-Down, Bottom-Up, and Middle-Out Budgeting
- Creating Master/Detail Budgets
- Uploading Budgets from a Spreadsheet
Budget Accounting Cycle
The basic functionalities of budget are
1. Define budget and assign periods
2. Define budget organization and assign a/c ranges to it
3. Enter or generate budget
4. Use budgetary control and online fund checking
5. Generate Reports