Understanding Annual Budgets

Using the annual budget method saves time when you enter budget amounts for each accounting period but still provides detailed amounts by period. The system distributes or spreads the annual amounts among accounting periods according to the budget pattern codes that you assign. You can assign budget pattern codes during any cycle of the annual budget process. You can enter annual budgets for amounts as well as units.

Organize your annual budget by one of these types of entries:

• Business unit: This type of entry creates a budget for accounts that are associated with a specific organizational unit, such as a department or warehouse.

• Account: This type of entry crosses business units and company boundaries. For example, use this type of entry to create a budget for salary and wage accounts across all business units.