Introduction - Configure cost budgets

  • 10 minutes

Budgeting in cost accounting resembles budgeting in the general ledger. A cost budget is created based on cost types just as a budget for the general ledger is created based on general ledger accounts.

A cost budget is created for a certain period, such as a fiscal year. You can create as many cost budgets as needed. Additionally, you can create a new cost budget manually, or by importing a cost budget, or by copying an existing cost budget as the budget base.

Cost Budgets can be created by using the following methods:

  • Manually

  • Transferring budgets from the general ledger by using the Copy G/L Budget to Cost Budget batch job

  • Copying cost budgets by using the Copy Cost Budget to Cost Budget batch job

Copy cost budgets

To copy a G/L budget to a cost budget, follow these steps:

  1. Select the Search for Page icon in the top-right corner of the page, enter Cost Budgets, and then select the related link.

  2. Select New.

  3. In the Name field, enter a name.

  4. In the Description field, enter a description.

  5. Select Cost Budget per Period.

  6. On the Cost Budget per Period page, select More options > Actions > Functions > Copy G/L Budget to Cost Budget.

  7. On the Options FastTab, in the Budget Name field, select the cost budget that you want to copy to.

  8. If you only want to copy to certain cost types, cost centers, or cost objects, you can enter them in the Cost Type No., Cost Center Code, and Cost Object Code fields. You can also leave the fields blank.

  9. In the Date Change Formula field, you can set a date formula that the program can use for changing the dates in the budget. For example, to add one year to the G/L budget, enter 1Y in this field.

  10. On the G/L Budget Entry FastTab, in the Budget Name field, enter the G/L budget that you want to copy to the cost budget.

  11. Select OK.

Other than copying a G/L budget to a cost budget, you can also perform the following tasks:

  • Copy a cost budget to a G/L budget

  • Copy a cost budget to a cost budget

Transfer Budget to Actual

By using the Transfer Budget to Actual batch job, the program creates cost entries by shifting budgeted costs to cost centers (or cost objects).

This process is mainly done for reporting purposes and it allows users to build analysis reports with a combination of actuals from the other three sources (transfer from G/L, cost journals, and cost allocations) and actuals from budget transfers.

Because any cost entry can be deleted, it's also possible to delete cost entries that are coming from budget transfers.

To transfer a cost budget to actuals, follow these steps:

  1. Select the Search for Page icon in the top-right corner of the page, enter Cost Budgets, and then select the related link.

  2. On the action menu, select More options > Actions > Functions > Transfer Budget to Actual.

  3. On the Cost Budget Entry FastTab, select the budget for which you want to transfer the budget entries to actuals.

  4. Enter a date filter.

  5. If you only want to transfer specific cost types, cost centers, or cost objects, apply the filters as required.

  6. Select OK.

The details of the posting process are recorded in a new entry in the registers. The cost register entry contains the first and last numbers for the new cost entries.