Example: Budget Checking Calculation
For account 3.8605, these default ledgers contain the totals indicated:
BA (budget amount) for the year: 1,000
PA (encumbered amount) balance to date: 320
AA (actual amount) balance to date: 420
Using the totals for the ledgers, the calculation is:
1,000 – (320 + 420) = 260
If any unposted transactions in the F0911 table cause the account to exceed the available budget amount of 260, the transaction appears on the report.
You can substitute other ledgers for the default ledgers in the processing options. You also choose the level of detail to use to accumulate the balances and the calculation method to use to determine the total budget amount.
The calculation for the budget variance includes any vouchered amounts already encumbered by purchase orders. If a vouchered amount that is encumbered by a purchase order appears in the AA ledger as an unposted amount, the system does not count it twice.