Understanding Journalized Budgets

Although most organizations do not need a formal audit trail for budgeting, some do. For example, construction companies use cost accounting, and governmental agencies record supplemental appropriations for the original budget. For these types of organizations, journalized budgets provide a formal audit trail.

Budget entries for a journalized budget are the same as journal entries, but you assign a budget ledger type. You create the budget by entering budget amounts as journal entries, which you then review and post like other journal entries. Batches with budget entries have the same batch type (G) as other journal entries. The system updates journalized budgets in the F0911 table. When you post the batch, the system updates the F0902 table. However, the system does not update the budget amount fields BREQ, BAPR, and BORG in the F0902 table.

To change a budget that you entered as a journalized budget, you must use the Journal Entry form. Do not use the annual or detailed budget method to change a journalized budget entry. Budget journal entries typically do not have to be in balance. You specify whether your budget ledgers are required to balance in the Ledger Type Master Setup program (P0025). Budget ledger types should begin with B, J, K, L, M, N, O or U.