Budget management is essential for companies to improve profit, reduce costs, and increase investment. By analyzing the budget report on a regular basis gives you a complete overview of the financial situation and of the company and performance.
A budget overview can identify the current capital and give you an estimate for the expenditure. You can control the company’s finance and to ensure the company can fund the current commitments by the proper budget management.
In Odoo, by enabling the budget option from the settings, you can view the Odoo budget management menu from the accounting, and you can create a budget by clicking on create button. You can view the existing budget from either the list or kanban view in the budget menu. And you can also filter the Drafts and to Approve budgets separately.
Enable odoo budget management from the accounting configuration as shown below to configure budget management.
From the accounting dashboard, click on the budget from the drop-down a page will open as shown below,
Click on create button to create a new budget, and the list view shows the already created budget.
- Enter the budget name and select the period of the budget,
- You can add budget lines by clicking on adding a line. You can select an already created budgetary position, or you can create a new budgetary position.
- Click on the Create and Edit button, and a wizard opens as shown below to configure the Budgetary position shown below.
- Enter the budgetary position name and select the account of budgetary based on the nature of that budgetary position. If your budgetary position is based on income, then select an income account.
- From the budgetary lines, each line has a start date and end date. You can select your date period as the start and end date. You can also select the Planned Amount for each budgetary position
- Based on the actual amount, the theoretical amount will automatically be calculated. Based on the customer invoice creation, budget lines are automatically reconfigured. Let’s look at how budgets and invoices are linked. You can create new invoices from the Accounting menu. Select any customer and product, enter the amount, and click on the confirm button. After the confirmation, go to the budget menu and select the newly created budget from the menu. A budget overview can identify the current capital and give you an estimate for the expenditure.
Click on the entries button to show created journal entries from the budget lines.
- Let’s look at the relationship between budget and vendor bills. First, go to the accounting tab, and create the vendor bill shown under the vendor menu. Then click on confirm button and then click on the register payment button. After this, go to the budget menu, then you can see that limit of the budget became exceeded, and you have to manage the expense.
- You can easily analyze the budget by using a Budget analyst report. From the dashboard of the accounting module, select The budget analysis then a report view will popup as shown below,
Click on the budget that you want to get complete details. And there are filtering and grouping option to filter the budget.