Budget Revision: Process Activity

In this activity, you will learn how to make changes to an existing budget.

Story

Suppose that the management of the SweetLife Fruits & Jams company has reviewed the budget for 2023 and decided to revise it as follows:

  • The wholesale center's budget has to be increased by $3,600 in the 12th period of 2023 because more revenue is expected during the winter holidays.
  • The rent expenses should be increased by $2,000 and distributed evenly among the periods.
  • Advertising expenses should be increased to $14,200 and distributed proportionally to released values.

Acting as the financial supervisor of SweetLife, you need to modify the 2023 budget in the system.

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, the budget for the HEADOFFICE branch has been created, as described in Simple Budget: Process Activity.

Process Overview

In this activity, to modify a budget, you will make the necessary changes to the budget on the Budgets (GL302010) form, and then release the modified budget articles on the Release Budgets (GL505510) form.

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 accountant by using the following credentials:
    • Username: johnson
    • 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 to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Changing Amounts in the Released Budget

To make changes to the amounts in the budget of the HEADOFFICE branch, do the following:

  1. Open the Budgets (GL302010) form.
  2. In the Summary area, specify the following settings:
    • Branch: HEADOFFICE
    • Ledger: BUDGET
    • Financial Year: 2023
  3. Make sure the Tree View check box is selected.
  4. Select the Sales node and in the table, modify the amount for the twelfth financial period for the 40000 account and the JAM-000 subaccount as follows:
    1. In the Period 12 column, change the amount to 14950.
    2. In the Amount column, specify 125700.

    Notice that the system has cleared the Released check box for the row.

  5. On the form toolbar, click Save to save your changes.

Step 2: Changing the Amount and Distributing Rent Expenses

To change the amount of rent expenses and distribute the expenses evenly among the periods, do the following:

  1. While you are still on the Budgets (GL302010) form, select the Production > Overhead node and in the row for the 62900 account with the Rent or Lease Expense description, change the value in the Amount column to 16400.

    Notice that a warning message has appeared for the row. To release this budget article, the values in the Amount and Distributed Amount columns have to be equal.

  2. On the table toolbar, click Distribute.

    The system opens the Distribute Year Amount by Periods dialog box.

  3. In the dialog box, in the Distribution Method box, make sure Evenly is selected. Leave the Apply to All Articles in This Node check box cleared to apply the distribution method to only the selected budget article, and click OK.

    The system distributes the amount evenly among the periods.

  4. On the form toolbar, click Save to save your changes.

Step 3: Distributing Advertising Expense Amounts Proportionally to Released Values

To distribute the amounts of advertising expenses proportionally to released values, do the following:

  1. While you are still on the Budgets (GL302010) form with the HEADOFFICE budget selected, specify the following settings in the Summary area:
    • Compare to Branch: HEADOFFICE
    • Compare to Ledger: BUDGET
    • Compare to Year: 2023
  2. Select the Production > Purchases node and in the table, click the row with the 61000 account to select it.
  3. In the Amount column for the selected row, specify 14200.

    Notice that a warning message has appeared for the row. To release this budget article, the values in the Amount and Distributed Amount columns have to be equal.

  4. On the form toolbar, click Distribute.
  5. In the Distribute Year Amount by Periods dialog box, which opens, select Proportionally to Compared Values in the Distribution Method box.
  6. Click OK.
  7. On the form toolbar, click Save to save your changes.

Step 4: Releasing the Budget Articles

To release the budget articles, do the following:

  1. Open the Release Budgets (GL505510) form.

    The table shows the budget articles that you modified earlier.

  2. On the form toolbar, click Release All.

    The Processing dialog box opens. Close it when the processing is complete.