Overview of Static Budgeting
A static (fixed) budget is based on a single level of activity, for example, a particular
volume of sales or production. The actual results are compared against budgeted (standard)
costs only at the original budget activity level.
Static budgeting in Infor ERP LN is called multi-dimension budgeting.
As part of the Controlling process, a budget can be allocated across various cost levels (dimensions). This table lists various cost levels at which the budget can be allocated.
| Example - A | Ledger Account---> | Cost Center---> | Product | Sales Area---> | Project |
| Example - B | Ledger Account | ||||
| Example - C | Ledger Account---> | Cost Center | |||
| Example - D | Ledger Account---> | Cost Center---> | ---------> | Sales Area | |
| Example - E | Cost Center---> | Product---> | -----------------> | Project |
The budget is first allocated to a ledger account. If required, this budget amount or quantity can be split and allocated to other cost types. Therefore, this budget is referred as a multi-dimension budget.