Budgets in Microsoft Dynamics 365 Business Central (D365BC)

Budgets in Microsoft Dynamics 365 Business Central: Efficiency and Effectiveness

There are four major types of budgets in Microsoft Dynamics 365 Business Central (D365BC): G/L (general ledger) Budgets, Cost (accounting) Budgets, Item (inventory) Budgets and Job (project) Budgets. This post focuses on the capabilities of D365BC G/L Budgets.

 
To learn about D365BC modules, its financial reporting capabilities, the industries and sectors it serves, its license types and their prices and to estimate your implementation cost and savings, visit the corresponding page or contact us.
 

What Can You Budget By?
First of all, it is worth mentioning that G/L Budgets can be used for cost and project budgeting too (although there are separate budget types for these categories). This flexibility of G/L Budgets is explicated by the fact that they rely on Dimensions (the “tags” attached to transactions) making the things that users can budget by virtually unrestricted. Here are just a few examples of what companies can budget by in D365BC:
      – departments;
      – lines of business;
      – areas;
      – Customer groups;
      – Vendor groups;
      – projects;
      – etc.

In multi-Company contexts, it is possible to create a Budget by Company (Business Unit). This means that it is possible to create one single Budget for all the Companies in the system. Alternatively, it is possible to create separate Budgets within each Company.

D365BC G/L Budgets can be created for:
      – individual G/L Accounts;
      – individual G/L Accounts by individual Dimensions;
      – individual G/L Accounts by groups of Dimensions;
      – groups of G/L Accounts (e.g. a Budget for all travel-related expenses, etc.).

Furthermore, it is possible to budget by the following periods:
      – day;
      – week;
      – month;
      – accounting period;
      – quarter;
      – year;
      – etc.

What Filters Can You Use?
It is possible to create Budgets without any Filters. Yet, it is often more convenient to budget by smaller chunks. For example, it may be more convenient to create a Budget for the administration department (all G/L Accounts) first and then proceed to the next department rather than budgeting for all of them at the same time.

Here are the Filters that can be used to help in the budgeting process:
      + G/L Accounts – users can budget by one particular G/L Account (all departments for 40010), a range (e.g. 40011 to 40099) or a group (40011 to 40039 and 40051) of G/L Accounts;
      + G/L Account categories – assets, liabilities, equity, income, cost of goods sold, and expenses can be used to filter G/L Accounts for budgeting purposes;
      + Balance Sheet vs Income Statement – it is possible to budget by both Balance Sheet and by Income Statement G/L Accounts, but if it is necessary to budget by the Income Statement type of G/L Accounts only, Balance Sheet Accounts can be filtered out;
      + Date – any day or any range of dates can be used to budget by. For example, it is possible to budget separately for July 1 and then for each day or for the rest of the month; the rest of the month or for Jan. 1 – Mar. 31 and then the rest of the year.

What Else Can You Do with Budgets in D365BC?
Here are several more useful things about D365BC Budgets:
      ✓ create unlimited Budgets – unlimited Budgets can be set up generally speaking (e.g. 1,000 Budgets in the system) and for any particular period (e.g. 10 Budgets for 2022);
      ✓ copy from an existing Budget – this can help create a new Budget;
      ✓ increase by a percentage – a Budget from the previous year (or any other period) can be easily increased by a certain percentage (e.g. +10 %) for the following year (or any other period) – for example, if a complex Budget by department, product line, etc. already exists, users can use the corresponding function to create a new Budget (10% up from the previous period) – the operation takes a minute to complete from the start to the end; additional changes can be made to the new (or old) Budget too;
      ✓ import from and export to Excel – it is possible to create a Budget in Excel, using formulas, highlights, etc. and then to import it into the system and, vice versa: to export a Budget into Excel for further editing or sharing;
      ✓ drill into a number – if a Budget already exists, each number can be drilled into to see what it is made of – for example, $1,000,000 revenue for G/L Account 40011 can be made up of $500,000 by sales and delivery departments each; the latter can be further made up of $250,000 by national vs international delivery each, etc.;
      ✓ round dollar amounts – it is possible to round by $1, $1,000 and $1,000,000 – this means, for example, that Budgets can be set up not to show the penny even if pennies are a part of the amounts as the result of using Excel formulas, copying from another Budget, etc.;
      ✓ use in reporting – Budgets can be used in a variety of reports – for example, it is possible to create budget to actuals, actuals % of the Budget and other reports;
      ✓ export or print – Budgets can be viewed on the screen (including, tablets and smart phones), exported in different formats (e.g. Word – DOCX and Excel – XLSX) or printed on paper or to a file (PDF);
      ✓ rely on user-friendly interface – the system controls around Budgets are intuitive and users learn fast how to work with Budgets.

Conclusions
Budgets in Microsoft Dynamics 365 Business Central have a number of features to make users’ work efficient and effective and to achieve corporate objectives. It is possible to budget by departments, lines of business, areas, etc. G/L Accounts, dates and other Filters are available to make the work convenient. Such features as import from / export to Excel, rounding, copying Budgets and others streamline the budgeting process even further.

If you would like to learn more about Microsoft Dynamics 365 Business Central Budgets – for example, to confirm that they can meet the needs of your company fully or if you have other questions about the system, contact us.