Hierarchical Budget: Process Activity

In this activity, you will learn how to prepare a hierarchical budget.
Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story

Suppose that for the SweetLife Fruits & Jams company, the budget structure has been defined in the system. Acting as an accountant, you need to prepare a hierarchical budget for the Service and Equipment Sales Center branch in the system for the financial years 2023 and 2021.

Configuration Overview

For the purposes of this lesson, the Subaccounts feature has been enabled on the Enable/Disable Features (CS100000) form. On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined according to your the company business needs. For details, see Subaccounts: Implementation Activity.

On the Ledgers (CS202000) form, a ledger with the Budget type has been defined for the SweetLife Fruits & Jams company. For details, see Budget Ledger: Implementation Activity.

Process Overview

To create a hierarchical budget, you preload the budget structure on the Budgets (GL302010) form. For 2023, you will upload the budget amounts from a file and distribute these amounts over the periods of the year on the Budgets form. You will then post the 2023 budget to a budget ledger by releasing the budget articles on the Release Budgets (GL505510) form.

System Preparation

Before you prepare the hierarchical budget, do the following:
  1. Sign in to the tenant with the pasic login and the 123 password.
  2. Open the Master Financial Calendar (GL201000) form.
  3. On the form toolbar, click Generate Calendar.
  4. In the Generate GL Calendar dialog box, which appears, make sure 2021 is selected in the From Year and To Year boxes, and click OK.
  5. Open the Manage Financial Periods (GL503000) form.
  6. In the Action box of the Summary area, select Open.
  7. In the To Year box, select 2021.
  8. On the form toolbar, click Process All.

Step 1: Preloading the Budget Structure

To preload the budget structure for 2023, do the following:

  1. Open the Budgets (GL302010) form.
  2. In the Summary area, in the Branch box, select SWEETEQUIP.
  3. In the Ledger box, make sure BUDGET is selected.
  4. In the Financial Year box, select 2023.

    As soon as you select the year for which you want to create a new budget, the system opens the Preload from Budget Configuration dialog box.

  5. In the dialog box, click Yes to confirm that you want to preload the budget articles. The system closes the dialog box and populates the budget articles on the Budgets form according to the budget tree configuration.
  6. In the Summary area of the form, make sure the Tree View check box is selected.

Step 2: Defining the Budget Amounts for 2023 and Releasing the Budget

To define the budget amounts and release the budget, do the following:

  1. While you are still viewing the budget for the SWEETEQUIP branch on the Budgets (GL302010) form, click Load Records from File on the table toolbar of the right pane, and select the Budget_SWEETEQUIP_2020 file. In the wizard that opens, leave all the default settings and map the columns as the system suggests.

    The system fills in the budget with the year amounts from the file.

  2. On the table toolbar of the right pane, click Distribute.
  3. In the Distribute Year Amount by Periods dialog box, specify the following settings:
    • Distribution Method: Evenly
    • Apply to All Articles in This Node: Selected
    • Apply to Subarticles: Selected
  4. Click OK to close the dialog box.

    The system distributes the amounts evenly among the budget articles.

  5. On the form toolbar, click Save to save the budget.
  6. Open the Release Budgets (GL505510) form.
  7. On the form toolbar, click Release All.

    The Processing dialog box opens; close this dialog box when the processing is complete.