Budget

[abbas9001]

Can anyone help me in understanding the terms
Budget
Encumbrance
Actual
Funds Available
Whic we can see on period balances screen.
Can I get a formula how the calculations are done.
Thanx.

[muthyala]

That Is Back end Process.As Per Code it will calculate
Rgds
Muthyala

[Upendra]

Budgets: Everyone company will have restrictions on their expenditure. Once, the amounts are fixed by internal cost control departments, those will be loaded into GL by way of Journal or ADI (Active Desktop Integrator).

Encumbrances: Encumbrances are nothing but reserving the funds. Once, an amount is fixed for particular expenses, what ever the PO (Purchase Order) that is approved against that expense is treated as encumbrance. That is nothing but reserving the funds from the available funds.

Available Funds: Available Funds are nothing but Budget-Actual Expenses-Encumbrances.

I think this will clear your doubt.

Upendra Donepudi

[Upendra]

And, as said by Muthyala, It is not a back end process. It is just a simple logic.

For Example, For an expense called TRavel Expenses in Sales Department

the Budget fixed is Rs.1,00,000 per period.
In that period, so far accounted is Rs.70,000/-
PO raised for Travel Tickets Rs.10,000/-

In that above scenario, your Budget Amount is Rs.1,00,000/-
Your Actual amount is Rs.70,000/-
Your Encumbrance Amount is Rs.10,000/-
Available balance is Rs. 1,00,000 - Rs.70,000-Rs.10,000 = Rs.20,000/-

I believe you understood the logic.

Upendra Donepudi