How To: Analyse Budget Figures

Note: the Budgets functionality needs to be enabled by ticking the 'Profit and Loss: Nominal Account Budgets' option in the Accounts section of System Values.

1. Open an Accounts screen (show me how).
2. Open the [ Profit & Loss ] tab.
3. Tick the "Show Budget" check-box.
4. Click on the "Go" button.
   Note: The radio buttons can be changed at the top of the screen to show the figures on a monthly, quarterly or annual basis. Remember to click on "Go" to refresh the screen when selecting a radio button.

Information contained in the Screen

1. Diff: calculated based on the difference between the budget and/or value column.
   Notes:
   1. If the difference is 0.00 it is left blank.
   2. Pink background:
      1. with Positive amount: exceeded the budgeted cost or expense.
      2. with Negative amount: failed to reach income that was budgeted.
   3. Green background
      1. with Positive amount: exceeded income budget.
      2. with Negative amount: expense or cost is less than budget.
2. The Gross Profit is calculated for the budget column in the same way as the 'value' column is currently calculated i.e. Sales - Cost of Sales = Gross Profit.
3. The Gross Profit Margin is calculated for the budget column in the same way as the 'value' column is currently calculated i.e. (Gross Profit/Sales) * 100.
4. The Net Profit is calculated for the budget column in the same way as the 'value' column is currently calculated i.e. Gross Profit - Total Expenses = Net Profit.
5. The Net Profit Margin is calculated for the budget column in the same was as the 'value' column is currently calculated i.e. (Net Profit/Net Sales) * 100.
6. If stock is adjusted there maybe a net gain displaying as a negative cost figure as the stock was received in but without a creditor.

See Also

• Accounts overview