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| Accpac tip about Accounting and I/C, O/E, P/O |
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Week |
Feb week 1 2012 |
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Subject |
Budget methods |
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Details
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The eight Budget Method options provide you with a variety of ways to tell the system to calculate budget period amounts based on information you specify. |
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Fixed amount
When you select this option, a Fixed Amount field appears. You enter an amount which the system enters in (or adds to) the Budget Amount fields for each period.
Spread amount
When you select this option, a Spread Amount field appears. You enter an amount which the system distributes evenly across the Budget Amount fields for each period. If the amount does not divide up evenly, the remainder is added into the last period.
Base, percent increase
When you select this option, the Base Amount and % Increase fields appear. Enter the base amount you want to begin with in the Base Amount field (that is, the base amount you want to use to calculate the budget for Period 1). Enter the percentage (in decimal notation) by which the base amount should be increased in the % Increase field.
The system multiplies the base amount by the percent increase and puts the result in the Period 1 Budget Amount field. To calculate the budget amount for Period 2, the system takes the Period 1 amount and multiplies it by the value in the % Increase field. To calculate the Period 3 budget amount, the system multiplies the Period 2 amount by the % Increase value. The system continues to calculate budget amounts in this manner until all the periods have a budget amount
Base, amount increase
When you select this option, the Base Amount and Amount Increase fields appear. Enter the base amount you want to begin with in the Base Amount field (that is, the base amount you want to use to calculate the budget for Period 1). Enter the amount by which the base amount should be increased in the Amount Increase field.
The system uses the Base Amount you specify as the Period 1 Budget Amount. To calculate the budget amount for Period 2, the system adds the Base Amount to the Amount Increase and puts the result in the Period 2 Budget Amount field. To calculate the budget amount for Period 3, the system takes the Period 2 amount and adds the Amount Increase figure. The system continues to calculate budget amounts in this manner until all the periods have a budget amount
Copy, as is
When you select this option, the system copies the exact amounts in each period of the Inquiry Amount fields into the corresponding periods of the Budget Amount fields.
Copy, percent increase
When you select this option, the % Increase field appears. Enter the percentage by which the period amounts should be increased in the % Increase field.
The system multiplies amount in the Inquiry Amount field for each period by the percentage in the % Increase field, and copies the result into the Budget Amount field for the corresponding period.
Copy, amount increase
When you select this option, the Amount Increase field appears. Enter the amount by which the period amounts should be increased in the Amount Increase field.
The system adds the period amount in each Inquiry Amount field to the amount in the Amount Increase field and copies the result into the Budget Amount field for the corresponding period.
Copy, prorated spread
When you select this option, the Spread Amount field appears. In the Spread Amount field, enter the amount you want to prorate to the individual periods.
The system performs a weighted distribution of amounts based on:
• The period amount in the Inquiry Amount field.
• The sum of period amounts in all the Inquiry Amount fields.
• The amount you specify in the Spread Amount field.
The system uses the following equation to compute each period's budget amount:
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Period inquiry amounts x Spread amt. for period = Budget amount
Sum of amts. (all periods) |
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In other words, it first arrives at a ratio (weight factor) by dividing each individual period’s inquiry amount by the sum of the inquiry amounts for all periods. It then multiplies that weight factor by the spread amount you specify to arrive at each period’s budget amount.
You can use the Add To or Replace buttons to move figures into the Budget Amount column:
• Add To: adds the amounts you are copying or calculating to amounts already in the column.
• Replace: replaces the amounts in the Budget Amount column with amounts you are copying or calculating.
Note: In a multicurrency system, you must enter the source and functional equivalents of other currencies separately -- if you want both sets of numbers.
To calculate the functional equivalent from a source amount, inquire on the source amount, then use the percent increase budget method. If the rate is less than one, use a minus percent increase (calculated by subtracting the rate from 1). |
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