Budget management plays an inevitable role in a successful business. It is the analysis, organization and oversight of costs and expenditures for a business or organization. Managing the budget is an essential part of running a business. Budgets make people intentional about the way money is spent as well as organize and prioritize work to meet financial goals.
Budget management is one of the best ways to analyze the actual performance. Budgets often allow you to take measures for the future wellbeing of the business, giving you enough space to plan the financial stability for the company. With Odoo’s highly advanced budget management features, it is effortless to manage the budgets in the business.
We have to install relevant apps to use budgeting. The main module is the accounting app. Find the app module to install the Finance and Accounting app. You have to configure as well. Choose the Accounting module with Configuration and go to Settings to enable the Budget management feature.
Now click on the “Settings” and go to the Budget Management and enable this feature with a tick mark on the checkbox. The ‘Analytic accounting’ feature will be enabled automatically while doing this. For reference you can consider the screenshot below.
After enabling budget management click to the save button and save the changes in setting.
Create Budgetary Positions : Budgetary positions give you the ability to include several accounts into one configuration which can then apply to your budgets. Budgetary positions are lists of accounts for which you want to keep budgets. They need to be defined so Odoo can know which accounts he needs to go get the budget information.
To go to the Budgetary Positions > Go to the account module configuration > from the drop down menu select Budgetary position > click on the create. For reference you can see the screenshot below.
Enter a name for this position, then under the “Accounts” tab click on “Add a line”, and the account to include. Add as many accounts as apply.
When it’s done. Click to the “Save” button.
Create Analytics Account : To create an Analytical account go to the accounting module > configuration > and click on the analytic account.
When you click on the Analytic account, you can see the list of Analytic accounts which are already created, or you can also create a new one with the help of the “Create” button.
Now click on the Create button to create a new Analytic Account. When you click on the create button, the new window will appear and you have to fill in the details and save.
After saving your new analytic account is created. For reference you can see the screenshot below.
Set a Budget : Go to the Accounting tab from the Dashboard of the Accounting module and click on Budgets from the drop-down menu. A page on Budgets will open up, as shown below.
Accounting Module > Accounting > Budget
Here you’ll see any existing budgets. To add a new one, click on the Create button as you can see in the above screenshot.
- Budget Name : Give your budget a name for easy reference.
- Responsible : This field will default to your name, but you can change it to whoever is responsible for managing this budget.
- Period : Set a date range that this budget is valid for.
Under the “Budget Lines” tab, click “Add a Line” to open a new line of the form.
- Budgetary Position : Select a Budgetary Position. While this isn’t a required field, it tells Odoo which account to consider for transactions related to your budget.
- Analytic Account : Select an Analytic Account, if applicable. If you add an entry here, Odoo will only tally the journal entries that match this analytic tag within the Budgetary Position you selected.
- Start Date : This will default to the budget’s start date but you can adjust it to any date within the budget period.
- End Date : This will default to the budget’s end date but you can adjust it to any date within the budget period.
- Planned Amount : Enter the amount planned for this line of the budget.
- Practical Amount : This is a calculated field that represents how much of this portion of the budget has already been spent.
- Theoretical Amount : This is a calculated field that represents how much of the budget could have been spent by today’s date.
- Achievement : This is a calculated field that displays the planned/practical figure.
- Entries : Once the budget is confirmed and approved, this link takes you to the entries that count toward this budget’s use, so far.
Now you can Save this in the form of a draft.
Once a budget is confirmed, the budget lines cannot be modified without canceling first. When you’re ready, click “Confirm”. At this point, Odoo will calculate the transactions that have already been used toward the budget.
The budget will then be ready for a user with proper permissions to Approve.
When a budget has been used or is no longer needed, click “Done”. At this point, matching journal entries will no longer tally against this budget.
This is how you can manage Budget in odoo. I hope this information will be helpful for you to understand the budget management in Odoo Accounting Module. To read more about Odoo module functionality please visit Planet-Odoo