Creating Budget for Groups

In the Budget Creation/Alteration screen, set Yes in the Groups field, to set budgets for a group or group of ledgers.

Creating Budget for Groups

In the Group Budget screen, select a Group from the List of Groups and enter Account Name.

Enter the cost centre for a group in Cost Centres field, select Not Applicable, if the budget is not for a particular cost center.

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In Type of Budget, select from the following two types.

1. On Nett Transactions

Select this option to monitor the transaction amounts and not the balances. Nett is net of debits and credits for the specified period. Nett transactions Budgets specified for a period automatically gets apportioned over the period. i.e., When On Nett transactions Budgets are defined, the debit amount for the specified period after reducing the credits for the same period is considered without taking into account opening and closing balances. For example to compare transactions against budgets, especially revenue income and expenses On Nett Transactions can be selected.

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2. On Closing Balance

Select this option to monitor the balances of the Accounts and the not the transactions. i.e., each month will have the same budget value except that the actual Opening Balance is also taken into account. Budgets on Closing balances can be set for Bank Account Ledgers, Debtors Ledger balances and so on. For example to compare closing balance figures in final statements, especially Balance Sheet items like assets and liabilities, select Closing Balances.

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Enter the budget amount in the Amount field.

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Note : Group Budgets do not get apportioned whereas Ledger Budgets get apportioned for each month.

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