About Budgets
The Budgets TSI is used to create and manage budgets in Planon. The primary purpose of budgets is to monitor the consumption of approved budget amounts over time.
Budgets can be defined as property-related or capital project-related. By linking a capital project to a cost group, budgets can be created for each project–cost group combination. The progress of capital projects and the status of the related budgets are displayed in the Financial console.
Budgets are updated through journal entries that are generated as a result of financial changes in other TSIs, such as Work Orders and Contracts . These journal entries reflect financial commitments and expenditures and enable users to track budget depletion.
 | Contracts based on lease accounting cannot be used in combination with budgets. Although it is technically possible to link a budget (definition) to a lease accounting contract line, this has no effect on the budget. |
Budgets and cash flow
In Planon, budgets and cash flow are separate financial concepts with different purposes:
• Budgets define planned financial limits and are used for financial control.
• Cash flow focuses on actual and forecasted cash movements over time.
Cash flow does not create, update, or influence budgets. Instead, cash flow values can be compared with budgets to assess financial performance and identify deviations between planned and actual or forecasted results.
For more information on working with cash flow in Planon, see Cash flow.