Budget vs. Actual Calculations

The SuiteApp considers the following when validating budgets in transactions:

• Amount in purchase order transaction lines considered as committed amount

• Amount in vendor bill transaction lines considered as actual amount

• Amount in purchase request transaction lines considered as committed amount

The following table gives an example of different transactions and their calculation in budget validation:

Serial Number	Transaction	Fields and Segments		Amount	Amount Type	Budget Amount (From Saved Search for Budget Validation)	Consumed Amount (From Saved Search for Budget Consumed)	Budget Validation
		Account	Department
1.	Budget	A1	D1	100		100
2.	Purchase order	A1	D1	50	Committed	100	50	Within budget
3.	Vendor bill created from PO	A1	D1	50	Actual	100	50	Within budget
4.	Vendor bill created without PO	A1	D1	60	Actual	100	110	Exceeds budget
5.	Purchase request from Employee Center	A1	D1	30	Committed	100	140	Exceeds budget

In this example, the outcome of budget versus actual amount is as shown below:

Budget vs Actual
Budgeted Amount	Consumed Amount	Actual Amount	Total Amount
100	30	110	140

When you edit a transaction line, the consumed amount is calculated from the last saved consumed amount. So, in this example, assume that you change the amount in Vendor bill created without PO from 60 to 40. The consumed amount for the changed transaction is recalculated as 120 (140 – 20), as shown below:

Serial Number	Transaction	Fields and Segments		Amount	Amount Type	Budget Amount (From Saved Search for Budget Validation)	Consumed Amount (From Saved Search for Budget Consumed)	Budget Validation
		Account	Department
1.	Budget	A1	D1	100		100
2.	Purchase order	A1	D1	50	Committed	100	50	Within budget
3.	Vendor bill created from PO	A1	D1	50	Actual	100	50	Within budget
4.	Vendor bill created without PO	A1	D1	60	Actual	100	120	Exceeds budget
5.	Purchase request from Employee Center	A1	D1	30	Committed	100	140	Exceeds budget

The SuiteApp also works with the Multiple Currencies feature in the following manner:

• For custom budget, if the currency is different from the transaction currency, the SuiteApp converts the budget amount and consumed amount on the transaction lines to transaction currency.

• For standard budget, the currency is derived from the budget category selected. If the budget category is global, currency is same as the currency of the parent company. If the budget category is local, the currency is same as the currency of the subsidiary. The SuiteApp converts the budget amount and consumed amount on the transaction lines to transaction currency.

• The SuiteApp derives the exchange rate for conversion from the value in the Exchange Rate field.

Related Topics

Using Budget Validation in Transactions

Guidelines for Importing Transactions Using CSV Files

Budget Dashboard

Budget vs. Actual Workbook

General Notices