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Budgeting

Purpose

The Budgeting module allows the cooperative to plan its income and expenditure for a financial year, monitor actual spending against the budget, and identify variances. Good budgeting ensures resources are used efficiently and financial targets are achieved.

Budgets List

👉 HOW TO CREATE AND TRACK BUDGETS (Vivid Guide)

  1. Go to Treasury & Control -> Budgeting in the sidebar.
  2. Click the blue button at the top right: "Create Budget".
  3. Select Account & Target: Choose the Expense account, enter the budget amount (target limit) for the period, and select the start/end dates.
  4. Click the green button to save.
  5. Monitor Variance: Regularly check the budget list page to see the Actual Spent vs. Budget Limit variance chart.

Who Can Access

  • Administrator
  • Manager
  • Accountant

How to Open This Page

Treasury & Control → Budgeting

Key Concepts

Term Meaning
Budget A financial plan for a specific period
Budget Line A specific income or expense category
Actual Real amounts spent or earned
Variance Difference between budget and actual
Over-Budget Actual spending exceeds the budget
Under-Budget Actual spending is below the budget

Creating a Budget

  1. Go to Budgeting → New Budget.
  2. Enter:
  3. Budget Name (e.g., "2025 Annual Budget")
  4. Financial Year
  5. Start and End Date
  6. Add Budget Lines:
  7. For each income or expense category, enter the budgeted amount.
  8. Click Save Budget.

Budget Controls

Budget Controls link budget lines to specific accounting codes, ensuring that spending in a cost category cannot exceed the budgeted amount without approval.

  1. Go to Budgeting → Controls.
  2. Link each budget line to an accounting ledger account.
  3. Set whether the control is Soft (warning only) or Hard (blocks the transaction).

Budget Revisions

When the budget needs to be updated mid-year:

  1. Go to Budgeting → Budget Details.
  2. Click Revise Budget.
  3. Update the budget amounts.
  4. Document the reason for revision.
  5. Click Save Revision.

Budget vs Actual Reports

  1. Go to Budgeting → Reports.
  2. Select the budget.
  3. Choose the period.
  4. Click Generate.

The report shows each budget line with the budgeted amount, actual amount, and variance.

Tips

Tip

Involve department heads in the budget planning process. They know their operational needs better than anyone.

Tip

Review the budget vs. actual report monthly. Don't wait until year-end to discover you are significantly over or under budget.