Understanding Budgets

Budgeting provides a projection of future expenses and revenues. Using budget history, you can compare actual amounts to your projections and use the information to improve your budgeting process.

You can enter annual budget amounts by business unit or account. Entering amounts by business units creates a budget by department, location, project, and so on. Entering amounts by account creates a budget that crosses business unit boundaries.

To review budgets, use an online review or a printed budget worksheet. With an online review, you can compare budget amounts with actual amounts. With the budget worksheet report, you can:

• Review your requested, approved, and final budgets for the next year.

• Compare budget amounts against actual amounts and projected amounts for the current year, and against actual amounts from the previous year.

• Show a projected amount and the percentage that the budget amount varies from the projected amount.