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Using MassBudgeting

MassBudgeting gives you the flexibility to allocate budget amounts to ranges of accounts throughout your organization using simple formulas.

You define a MassBudget formula using parent segment values to allocate budget amounts to accounts with child segment values. This enables you to allocate budget amounts to multiple accounts without having to specify each account separately in the formula.

All MassBudget formulas use the following equation:

ALLOCATION AMOUNT = COST POOL * (USAGE FACTOR / TOTAL USAGE)

When you generate MassBudget formulas, General Ledger creates budget journal entries. You can use the Enter Journals window to review and change any unposted MassBudget journal batches. Post the batches to update your budget balances.

MassBudgeting Example

With a simple MassBudgeting formula, you can calculate new budget amounts based on the previous year actuals, or on other budgets.

To illustrate MassBudgeting, assume you have a total 1995 budget that you want to distribute based on each department's contribution to the total 1994 revenue. The budget formula would be as follows:

1995 DEPT. BUDGET = TOTAL 1995 BUDGET * (DEPT. REVENUE/TOTAL 1994 REVENUE)

When you generate this MassBudgeting formula, General Ledger calculates the percentage of revenue for which the department was responsible, then allocates that percentage of the total 1995 budget to the department.

See Also

Defining MassBudgets

Generating MassBudget Journals

Posting Journal Batches


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