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 |
A |
Amount Type |
Budget Amount (From Saved Search for Budget Validation) |
Consumed Amount (From Saved Search for Budget Consumed) |
Budget V |
|
---|---|---|---|---|---|---|---|---|
Account |
D |
|||||||
1. |
Budget |
A1 |
D1 |
100 |
|
100 |
|
|
2. |
Purchase order |
A1 |
D1 |
50 |
C |
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 |
C |
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 |
A |
Amount Type |
Budget Amount (From Saved Search for Budget Validation) |
Consumed Amount (From Saved Search for Budget Consumed) |
Budget V |
|
---|---|---|---|---|---|---|---|---|
Account |
D |
|||||||
1. |
Budget |
A1 |
D1 |
100 |
|
100 |
|
|
2. |
Purchase order |
A1 |
D1 |
50 |
C |
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 |
C |
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.