Including a budget view when reporting your consolidated financials can benefit your company in a multitude of ways. It can give you insight into how your actual results compare with the budgeted figures, indicating whether you're underperforming or overperforming. Reviewing budgeted versus actual figures can also help reallocate your resources to ensure funds are being used efficiently.
In this blog, we'll discuss the two ways to add a budget to your consolidated financial reports: before or after the consolidation book is created.
Most companies prefer to create and assign a budget during the consolidation book's initial setup, and Sage Intacct considers this a best practice. This allows them to maintain one budget in multiple currencies, which is converted to the consolidated currency through the consolidation process.
This option also allows them to use one single budget for both consolidation and local currency reporting, as well as local and consolidated currencies. When entering budget amounts, the budget module will default to the entity's base currency.
The second option is to create the budget after the consolidation book has been set up and established. This option is commonly used instead of creating a new consolidation book, where you can create a budget in the existing book's consolidation currency.
To create a budget, navigate to Applications > Budget > Budget > Budgets repository - "Plus" icon.
In the example below, the budget I created is set up for a currency of US Dollars only and is to be used for local currency reporting (or only with a consolidated financial). It's important to choose a unique budget ID that includes helpful information such as the location and type of budget. I have entered the following information for the Budget information:
When dealing with an entity that deals in multi-currency, the budget amounts must be converted to the consolidation currency BEFORE entering the budget. For example, if you have an entity with a Canadian base currency, the budget amounts entered should already be converted to USD.
The budget you have just created is then added to the columns in the consolidated financials.
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Uploading Your Budgets Using Pre-Built Templates
How To Create Ad-Hoc Reports Using Views and Filters
Creating Expanded Columns and a Summary for Reports