Methods used for creating budgets

Several methods are available for creating budgets. The method that you select will depend on the number of budgets you will define and how unique or similar the budgets are. This table describes the available methods that you can use for creating budgets:

Entering budgets manually

You can define period budgets based on amounts, units, and rates you specify manually. These are the different ways you can define period budgets:

  • Specify units and rates to calculate amounts.

  • Specify amounts and rates to calculate units.

  • Specify units and amounts to calculate rates.

    For example, if you have a budget for labor costs, then you can specify the standard labor rate per hour (Rate) and the number of hours (Units). The budget Amount is automatically calculated as Rate * Units.

    See Defining a period budget.

    Note: You can assign a name and description to a rate to make it easier for users to select an appropriate rate. This is called a global factor.

    See Defining global factors.
Spreading amounts in budget entry

If you specify an annual budget, then it is spread equally across all periods for the year. For example, if you specify an annual budget of $120,000 and you have 12 periods, then a $10,000 budget is populated in each period.

You can use weighted values to define and use a spread code to spread budget amounts across periods. Spread codes can represent seasonal fluctuations, working days, weeks each month, or any other relevant values. For example, you can populate 5% of an annual budget in Period 1, 7% in Period 2, and 4% in Period 3. The weighted values that you will use in a spread code must total 100%.

See Defining spread codes.
Converting budgets from a non-Lawson system

You can interface budgets that you create in spreadsheets or other applications to the Budgeting application.

See Converting existing budget data.
Duplicating or copying values in budget entry

As a time-saving alternative to specifying budget values in each accounting period, you can duplicate or copy existing data.

You can specify amounts in specific periods, then duplicate the amounts up to the next period that contains a value. For example, if you want a budget of $10,000 in periods 1 through 6, and a budget of $15,000 in periods 7 through 12, then specify $10,000 in period 1 and $15,000 in period 7. The duplicate function populates $10,000 in budget periods 2 through 6, and $15,000 in budget periods 8 through 12 automatically.

You also can copy last year's actuals or budgets to create a new budget.

See Copying a budget.
Copying existing budgets by using a batch program You can use a batch program to define a new budget by copying from actuals or existing budgets. See Copying a budget.
Calculating computed budgets during data entry or by using a batch program

You can use a compute statement to create budgets. A compute statement is an arithmetic calculation that lets you construct your own calculation formulas. For example, you can base next year's budget amount on current year totals, factoring in a 5% increase. After you define a computed budget, you can attach a compute statement to a budget detail record and calculate the computed budget.

See Setting up computed budgets.