Spread methods tab

Spread methods define how values are distributed across periods. The spread methods are then used to define employee types and asset types. For example, when a budget holder selects an employee type, the spread method for that employee type determines how the employee's salary or increase is spread across the periods.

Asset types that require a custom depreciation method use a spread method to define the depreciation. A custom spread specifying a 0 spread weight for lag periods should be used when depreciation lag is specified.

Two default spread methods are provided:

  • The Evenly method spreads values evenly across all the periods.
  • The WeekdaysPerMonth method spreads values according to the number of weekdays in each calendar month. The number of weekdays are generated the first time Detail Budgeting Administrator is opened after a database is created (and before the Calendar Start Month is changed). These numbers are based on the year AFTER the current year. For example, if you first opened Detail Budgeting Administrator in 2009, the number of weekdays are generated based on 2010. If the numbers must be corrected for a subsequent fiscal year (such as Leap Year), administrators must manually change the numbers.

Spread methods such as WeekdaysPerMonth, which vary according to the fiscal year defined by the Calendar Start Month field, should be reviewed and updated at the beginning of each new year.

The weights specified in each period field (P01, P02, etc.) are used to compute monthly amounts:

(Weight for period / total weights for all periods) * yearly amount entered in Detail Budgeting = portion of yearly amount assigned to period

For example, a spread method with the P01 weight set to 2, and all other weights set to 1 for a yearly total of 13, and assuming a twelve-period year, spreads an annual amount of 1000:

P01 amount = (2/13)*1000 = 154

P02, etc. = (1/13)*1000 = 77

P12 amount = 76 (to make total 1000)

The last period, P12, is used to accommodate rounding differences.

For more detailed information about how salaries are spread, see "Computing Monthly Salaries."