Entering budgets for Balance Sheet items.
Introduction
When entering budgets for Balance Sheet items, the budget amount should be entered as the expected amount of change for the month, in the same way as you would enter the budgets for sales and expense items for the month.
Example
Let’s look at a simple example.
- Sales budget for a branch is: $-1600
- Purchase budget for the month is: $+800
- Expenses budget for the month is: $+300
The change in the bank account for the month would be:
Sales: -1600
Purchases: +800
Other Branch Expenses +300
Bank change: +$500
In this example, for the Y/E March 2022, we are budgeting for the bank balance to increase by $500 for the month (month 2).
The General Ledger Annual Budget Report would look like this:
The values in the total column are the cumulative totals for each month, which add up to the budget change for the year.
The Bank Account is budgeted to change by 114. It does not show the closing Bank Balance as we have not taken into consideration the opening budget for the BNZ Bank Account.
Looking at the Annual Budget for the previous year, Y/E March 2021, we see that the total change for the year for the BNZ Bank Account was $6.
Now look at the Balance Sheet report section for the BNZ Bank Account.
The closing balance for the budget is $120. This is composed of $114 for this year plus $6 opening balance.
The input .xlxs file for budgets looks like this …
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