Budgeting and Control - Tally ERP9

2.5 Budgeting and Control

Businesses need to control their expenses based on income levels and monitor variances. Budgets in Tally.ERP 9 helps you compare the actual financial performance versus budgeted figures and obtain variance reports. You can define multiple budgets (e.g. Optimistic Budget, Realistic Budget) or even create budgets for different periods. The budget values can be defined for each Group as well as for all Ledgers.

To configure for budgets,

Go to Gateway of Tally > F11: Features > F1: Accounting Features

Set parameter Maintain Budgets and Controls to Yes

To create budgets,

Go to Gateway of Tally > Accounts Info. > Budgets > Create

Specify a name for the budget

Specify a date range for the budget

Set Yes to Groups / Ledgers and assign budget to selected groups/ledgers

To view budget reports,

Select any report (Balance Sheet, Profit and Loss A/c, Trial Balance)

Select Alt + C (New Column)

Specify details for period, Currency and Method of Stock Valuation. (Default or as per requirement)

Select the created budget name for Types of Value to show

Set Show Variance to No

Variance Analysis

Once you have created Budgets, you can view the Variance Analysis Report which provides infor- mation on the difference between the actual versus the budgeted figures. This report helps man- agement to figure out variances and work to remedy the situation with the ability to drill down to the voucher level the user is able to understand which particular transaction or group of transac- tion brought about the variation.

To view a variance analysis report, you may set the option Show Variance to Yes, as explained above or follow the steps given below :

Go to Gateway of Tally > Display > Trial Balance/Account Books (Group Summary)

Select the Budget Variance (Alt + B) – Type of budget

To view the variance report in detailed mode, press Alt+F1 from the above report.