Revision: 86e03dd678

+<p> Budgeting is a financial plan that helps controlling Company expenses.</p>

+

+<p align="justify">In StrideERP, you can set and manage budgets against a Cost Center or a Project. This is useful in controlling your expenses. You can also create separate Accounting Dimensions to tag transactions with different fields.</p>

+

+<p align="justify">For example, if you are doing online sales, you can set a budget for search advertisements and configure StrideERP to stop or warn you from overspending beyond a set budget.</p>

+

+<p align="justify">Budgets are also great for planning purposes. When you are making plans for the next Financial Year, you would typically target a revenue based on which you would set your expenses. Setting a budget will ensure that your expenses do not get out of hand at any point.</p>

+

+<p align="justify"> </b> To access the Budget list, go to:</b></p>

+

+Home > Accounting > Cost Center and Budgeting > Budget

+

+<h3> 1. How to Create a new Budget </h3>

+<ol>

+<li>Go to the Budget list and click on New.</li>

+<li>Select what to budget against, Cost Center, Project, or an <a href="https://docs.gostride.io/accounting/accounting-dimensions">Accounting Dimensions</a></li>

+<li> In the accounts table, select an income/expense account for which a budget is to be set.</li>

+<li>Enter the budget amount for that account.</li>

+<li>Save and Submit.</li>

+</ol>

+<img src="/files/Budget.png">

+

+<h3> 2. Features </h3>

+<h3> 2.1 Monthly Distribution</h3>

+<p align="justify"> You can also define a Monthly Distribution record to distribute the budget between months. If you don't set the monthly distribution, StrideERP will calculate the budget yearly or in equal proportion for every month.</p>

+<img src="/files/Monthly distribution.png">

+<h3> 2.2 Control Actions (Alerts) </h3>

+<p align="justify"> Control actions can be triggered when:</p>

+<ul>

+<li>A Material Request is being submitted</li>

+<li>A Purchase Order is being submitted</li>

+<li>When an actual expense is being posted (through a journal entry or a purchase invoice).</li>

+</ul>

+<p align="justify"> You can set a control action in the Budget based on Material Requests, Purchase Orders, or on actual expenses. Further, you can set a control action for annual or monthly budgets.</p>

+

+<p align="justify"> There are three types of control actions. </p>

+<ul>

+<li><b>Stop:</b> This will not allow users to submit the transaction.</li>

+<li><b>Warn: </b>This will show a warning message but lets the user submit the transaction.</li>

+<li><b>Ignore:</b> This will neither prevent the user from submitting transactions nor show an error message.</li>

+</ul>

+

+<p align="justify"> You can set separate actions for monthly and annual budgets. If you exceed the budget, a warning will be shown</p>

+<p align="justify"> Note that a similar warning will be triggered for any type of transactions set in the budget for the particular Account heads.</p>

+<img src="/files/Control Action.png">

+

+<h3> 3. Budget Variance Report</h3>

+<p align="justify">At any point in time, you can check the Budget Variance Report to analyze the actual expense incurred vs budget allocated against a cost center or a project.</p>

Revision: 86e03dd678

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