Using budgets
 | Contracts based on lease accounting cannot be used in combination with budgets. Although it is possible to link a budget (definition) to a lease accounting contract line, this has no effect on the budget. A lease accounting contract line linked to a budget (definition) will not be posted to the budget. |
Depending on the setting of the Payment? field on the contract line, budgets can be income or expenditure. If this field is set to Yes, it is an expenditure, if set to No, it is an income. In service contract lines and non-lease accounting contract lines, the amounts can be defined as positive numbers or as negative numbers. However, Planon only takes the Payment? setting on the contract line into account, the sign of the amount (positive or negative) is irrelevant.
The contract line field Payment? determines how an amount should be registered: if it should be deducted from the budget or added to the budget. For example, money is deducted from an expenditure budget if the Payment? contract line field is set to Yes. Money will be returned to the budget if the Payment? contract line field is set to No.
Budgets on a contract line can be registered via:
• A Budget definition
◦ first you have to enable journal entry generation for the contract for the open financial years. You can do this by clicking the Generate journal entries for contracts action in the Financial year TSI.
◦ make sure that the Budget definition and the Budget have the same Code and are linked to the same Cost group.
◦ The Budget must be in the Open status.
◦ The Budget category and the Contract line must be linked to the same property.
• Budgets are now initially registered and further financial changes of amounts are allowed.
• A Capital project and Cost group combination
Budgets on capital projects can be registered and updated by linking a capital project and a cost group to a financial year.
| | The Update budgets on basis of budget definition setting in Field definer > > should be set to Yes to be able to register contract line amounts on budgets. |
Every financial change on a contract line results in an update of the corresponding budget. For example, activating a contract line, closing an amount on the contract line, price changes on the contract line. If a budget definition is linked to a contract line:
• Activation of the contract line and recalculation of the financial commitments due to an updated amount updates the total committed costs on a budget.
• Final closure of the financial commitments (see Closing amounts) updates the total invoiced costs on a budget.
| | For more information on working with budgets, see the Budgets user documentation. |