Balance sheet budget

Here you will learn how to configure the system to generate a balance sheet budget of your enterprise.

With the subsystem tools, you can get flexible solutions depending on the industry you work in and your company's management methods. You can export the budgeting model and its basic catalogs (budgeting scenarios, budget profiles, budgeting steps, and so on) to a file and import them to another infobase. Along with the standard configuration, you get a file with a budgeting model example. Below you can find recommendations on how to set up the application based on the economic theory and best practices.

An underlying approach to planning is to develop a multi-factor and interrelated model of financial plans. This principle allows you to carry out the factor analysis of received values and make changes to financial plan values with minimal labor costs. In other words, one or several system sources must be used to calculate each new amount. If you cannot use system data as it does not exist or is not reliable, you can enter required data manually.

Before you continue with the setup, we recommend that you configure:

• Basic settings of financial planning
• Income and expense budget
• Equity change budget
• Cash flow budget
• Capital investment budget
• Master plans

Note that the balance sheet budget is built based on budget balance items, not budget flow items. When you calculate budget balance items, you need to include other budget balance items and budget flow items.

Step 1. Generate a structure of budget balance items.

Step 2. Generate a list and a structure of budgets related to the balance sheet budget. Note that a data structure must be created based on the enterprise policy of financial planning and budgeting.

For budgets, select a planning method: fixed boundaries of the planning horizon or rolling boundaries of the planning horizon, where the horizon amount remains the same when the planning period is moved forward. With the rolling planning, you need to check and update the financial plan for new periods regularly. Keep in mind that you need to select a planning method based on the enterprise policy of financial planning and budgeting.

Step 3. Set up rules to request information from system sources.

Once you set up the application, the financial planning subsystem is ready for use as a tool for financial planning of the balance sheet budget.