Budget Definition

Hi,

I explored the forum regarding budget definition and found following two ways.

1 - For annual budgets ,In cost center form account wise budgets can be defined.
2 - For Monthly budgets ,Monthly distribution can be entered.
3 - Then in company configuration we can define the action (warn,ignore,stop).

What is the science behind monthly distribution? How is it defined? By default there is 8.333, what does it mean?

Regards,

In Cost center you can define annual budget. Then if you make Monthly Distribution record, where you can define the percentage for each month. The default is 100/12 = 8.33%, hence your annual budget is distributed equally over all months.

Hi @Zahid.Butt

Refer following link -
https://frappe.github.io/erpnext/user/manual/en/accounts/setup/cost-center.html
https://frappe.github.io/erpnext/user/manual/en/accounts/budgeting.html

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Hi,

I performed following steps.

1 - Defined monthly distribution “Admin Expenses” with default percentages 8.333 each month.
2 - I entered annual budget against account in cost center.
3 - In company list I selected to stop if expense exceeds the budget amount both in monthly and annually.

Still system allows to enter expenses more than budget amount. Screenshots are attached for reference.

Regards,

Zahid

For monthly budget, it checks for accumulated budget vs actual expense till the month from the beginning of the year.

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Thanks for your precious time nabinhait. Its done.

Regards,