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Associate Accounts with Budget Codes

Saranya Detintaranaruk
In the checkbook, the budget of the entire outlet must be put in the account which we associated. How many accounts shall we associate for one budget? How many budget can we associate to one account?
 
Ideally we have the budget by line account. We want to see a comparison of actual spending vs. budget of each account.
 
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David Fournier

Hi Saranya Detintaranaruk,

Thank you for your query.

Budgets (&/or Forecast &/or Plan values) are loaded against a specific Account by Department or Division as outlined here:

Adaco: Creating or Importing a Budget or Forecast or Plan

The Budget Code is a way of grouping Account values on reports such as the Adaco: Checkbook Accounting Report or Fourth Analytics Adaco: Budgets. Our recommended best practice is to align Budget Code names with the sections of the company's P&L that are relevant to the usage of Adaco (ignoring Revenues, Payroll & Related expenses, etc.), e.g.:

  • Balance Sheet (Assets/Liabilities)
  • Cost of Sales
  • Other Operating Expenses
  • Utilities
  • Management Fees

For example, there would be a Budget/Forecast/Plan loaded for the individual Accounts of China, Glass, Silverware, & Linen which can be viewed when approving Purchase Requisitions per Account; the reports will then also subtotal the above 4 accounts plus any additional accounts with the 'Other Operating Expenses' Budget Code set.

A single Account can only have one Budget Code set against it but a single Budget Code is usually associated against multiple Accounts, in line with the P&L Statement.

Please let us know if you have any further questions on this topic.

Best

David

Fourth

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