Modification of a Hierarchical Budget: Process Activity

The following activity will walk you through the process of modifying a hierarchical budget by adding a leaf article to a budget node and uploading a budget based on the updated budget tree.

Story

Suppose that the management of SweetLife Fruits & Jams needs to have a budget article that aggregates all travel expenses of the company. The hierarchical budget should include the Travel Expenses leaf that would aggregate budgeted amounts for accounts from 70000 (Travel - Tickets) to 70020 (Travel - Meals). Further suppose that the budget for 2024 should be based on the configured budget tree and uploaded to the system.

Acting as a system administrator, you need to add a leaf budget article to the Production node of the budget, add the budget amounts for travel expenses in 2023, and finally, upload the budget for 2024 that already includes travel expenses.

Configuration Overview

On the Enable/Disable Features (CS100000) form, the Subaccounts feature has been enabled. On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined according to the company’s business needs, as described in Subaccounts: Implementation Activity.

In the U100 dataset, on the Ledgers (CS202000) form, a ledger with the BUDGET identifier and the Budget type has been defined for the SweetLife Fruits & Jams company.

On the Budgets (GL302010) form, a simple budget has been converted into a hierarchical budget for the HEADOFFICE branch, as described in Conversion of a Simple Budget into a Hierarchical Budget: Process Activity.

Process Overview

In this activity, you will add the Travel Expenses leaf to the Production node of the hierarchical budget on the Budget Configuration (GL205000) form. On the Budgets (GL302010) form, you will convert the 2023 budget based on the updated budget tree and update the Travel Expenses article. You will then release the modified budget article on the Release Budgets (GL505510) form. Finally, on the Budgets form, you will upload a budget for 2024 from an Excel file.

System Preparation

To prepare the system, in a tenant with the U100 dataset preloaded, do the following:

  1. Launch the MYOB Advanced website, and sign in as an administrator by using the following credentials:
    • Username: gibbs
    • Password: 123
  2. On the Company and Branch Selection menu, also on the top pane of the MYOB Advanced screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu button to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Adding the Travel Expenses Leaf

To add the Travel Expenses leaf to the Production node of the SweetLife budget, do the following:

  1. Open the Budget Configuration (GL205000) form.
  2. In the Budget Tree pane, click the Production node.
  3. On the table toolbar of the Subarticles pane, click Add Row, and specify the following settings for the added row:
    • Node: Cleared
    • Account: 70000
    • Subaccount: 000-000
    • Description: Travel Expenses
    • Account Mask: 700??
    • Subaccount Mask: 000-000
  4. On the form toolbar, click Save to save your changes.
  5. On the toolbar of the Subarticles pane, click Configure Security to review the new leaf added to the ProductionBudget access group.

    The system navigates to the Restriction Groups by Budget Article (GL105020) form with the Travel Expenses budget article selected. Notice that the Included check box is selected for the row with the ProductionBudget group in the table. This means that the Travel Expenses article has been added to this restriction group.

Step 2: Converting the Budget by Using the Updated Budget Tree

To convert the budget by using the updated budget tree, do the following:

  1. Open the Budgets (GL302010) form.
  2. In the Summary area, specify the following settings:
    • Branch: HEADOFFICE (SweetLife Head Office and Wholesale Center)
    • Ledger: BUDGET
    • Financial Year: 2023
    • Tree View: Selected
  3. On the form toolbar, click Manage Budget.
  4. In the Manage Budget dialog box, which opens, select Convert Budget Using Current Budget Configuration in the Select Action box. Click OK, and in the warning message that displays, click OK.
  5. On the form toolbar, click Save to save the changes.

Step 3: Updating the Travel Expenses Article

To update the Travel Expenses article, do the following:

  1. While you are still on the Budgets (GL302010) form, click the Production node.

    One budget article has been added to the node automatically by the system during the conversion.

  2. In the row for the 70000 account, enter 3600 in the Amount column.
  3. On the table toolbar, click Distribute.
  4. In the Distribute Year Amount by Periods dialog box, which opens, make sure that the following settings are specified:
    • Distribution Method: Evenly
    • Apply to All Articles in This Node: Cleared
  5. Click OK. The amount you have specified has been distributed evenly through the periods of the financial year.
  6. On the form toolbar, click Save to save your changes.

Step 4: Releasing the Updated Budget

To release the updated budget, do the following:

  1. Open the Release Budgets (GL505510) form.
  2. On the form toolbar, select the updated budget and click Release.

Step 5: Uploading and Releasing a Budget for 2024

To upload a budget for 2024 that should be based on the updated budget tree, and then release it, do the following:

  1. Open the Budgets (GL302010) form.
  2. In the Summary area, specify the following settings:
    • Branch: HEADOFFICE
    • Ledger: BUDGET
    • Financial Year: 2024
    • Tree View: Selected
  3. In the Preload from Budget Configuration dialog box that the system displays, click Yes.
  4. On the table toolbar, click Load Records from File.
  5. In the File Upload dialog box that opens, click Choose File and select the Budget_SWEETLIFE_2024.xlsx file. Click Upload.
  6. In the Common Settings dialog box that opens, select Update Existing in the Mode box and click OK.
  7. In the wizard that opens, leave all the default settings and map the columns the system has filled in, and click OK.

    The system uploads the budget articles from the Excel file.

  8. On the form toolbar, click Save to save the budget configuration.
  9. Open the Release Budgets (GL505510) form.
  10. On the form toolbar, click Release All to release all the listed budget articles.