Creating a Flexible Budget (Oracle General Ledger Users' Guide)


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Creating a Flexible Budget

You can create a flexible budget that you can easily update to reflect current operating results or statistics. This is useful if you want to see revised budget amounts based on actual amounts, rather than on other projected amounts.

For example, assume you want to "flex" your budget based on the number of production units in a particular accounting period. You can define the budget to reflect actual production units instead of planned production units to eliminate volume variances. You would define the following formula:

BUDGET = COST * (ACTUAL UNITS / PLANNED UNITS)

You can maintain the number of actual production units in a statistical account that you adjust each accounting period. Once you have recorded the actual production units, you can calculate your flexible budget for the month and generate the appropriate reports.

To create a flexible budget:

1. Enter and post journals to update the actual balances in the source account.

2. Define a budget formula, specifying the account on which the flexible budget is based.

3. Calculate budget amounts using the budget formula batches you defined for the flexible budget.

Creating a Flexible Budget

To create a flexible budget:

See Also