59 lines
1.9 KiB
Markdown
59 lines
1.9 KiB
Markdown
ERPNext will help you set and manage budgets on your Cost Centers. This is
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useful when, for example, you are doing online sales. You have a budget for
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search ads, and you want ERPNext to stop or warn you from over spending, based
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on that budget.
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Budgets are also great for planning purposes. When you are making plans for
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the next financial year, you would typically target a revenue based on which
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you would set your expenses. Setting a budget will ensure that your expenses
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do not get out of hand, at any point, as per your plans.
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You can define it in the Cost Center. If you have seasonal sales you can also
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define a budget distribution that the budget will follow.
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In order to allocate budget, go to Accounts > Setup > Chart of Cost Centers and click on Chart of Cost Center.
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Select a Cost Center and click on Open.
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#### Step 1: Click on Edit.
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<img alt="Accounts Receivable" class="screenshot" src="{{docs_base_url}}/assets/img/accounts/accounts-receivable.png">
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#### Step 2: Enter Monthly Distribution.
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If you leave the** **distribution ID blank, ERPNext will calculate on a yearly
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basis or in equal proportion for every month.
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#### Step 3:Add New Row and select budget account.
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### To Create New Distribution ID
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ERPNext allows you to take a few budget actions. It signifies whether to stop
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, warn or Ignore if you exceed budgets.
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These can be defined from the Company record.
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Even if you choose to “ignore” budget overruns, you will get a wealth of
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information from the “Budget vs Actual” variance report. This report shows
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month wise actual expenses as compared to the budgeted expenses.
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{next}
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