Automating Budgeting In Microsoft Dynamics 365

John Smith

  • Apr 24, 2019

With the growing demands of businesses, Microsoft created an enterprise resource planning ERP level software, Microsoft Dynamics 365 for all businesses.

If you are unaware of Dynamics 365 this blog will give you a glimpse of what it offers. We will be discussing the budgeting in Dynamics 365. For better tracking of finances and resources for different projects or companies.

Microsoft offers us three boxed approaches for budgeting in Dynamics 365. These three budget approaches consist of Budget Register, Budget Plan. and Budget Control. The story is not ended here if you need to implement any of the above-mentioned approaches for the budget in Dynamics you have to fulfill some requirements. Some of the basic requirements for budgeting are mentioned for your information.

Basic Requirements For Budgeting.

Suppose you already have a chart of account and you have to make plans such as calendar and financial dimensions. You have to follow these steps:

Organize Your Account Structure.

You have to make one account structure with a financial dimension for your budgeting.
General ledger > accounts chart > structure > organize account structure.

Define The Currency Exchange Rate.

You have to go to General ledger /currencies /currency exchange rate and set up your rate for the type budget.

Configure Ledger Set Up

After that link budget account structure, fiscal calendar, and budget exchange rate in Ledger form
General ledger / ledger setup / ledger.

Make A Journal For The Budget

If you find the need of making a journal for your budget, make sure it is with the budget journal type.
General ledger /journal setup / journal names.

Make Economic Reasons

You have to go to General ledger / journal setup / financial reasons.

For Basic budget set up, you have to follow these steps.

Explain Basic Budget Limitations

Go to Budgeting > Setup > Basic budgeting > Budgeting Parameters, select the budget journal and set the time limit for budget balances. For better understanding the time limit for budget balances parameter let me share an example with you. Just imagine you have a budget for the account of $6000 for the year 2019 divided into $500 per month and your budget entries: Jan 2019: $ 500, Feb 2019: $ 500 and so on. You have posted an invoice with the amount $400 in January. Now it is February and you want to make a new transaction of amount $ 550. These options will do the next:

Financial period: Your budget space is not enough. It is only $ 500.

Financial year: The remaining budget is now $ 6000-$ 400 = $ 5600. So enough budget to continue.

Financial year to date: The remaining budget is: (2 * $ 500) – $ 400 = $ 600.

Make Budget Workflow

Go to Budgeting / Setup / Basic / workflow.

Describe Budgeting Dimension.
Go to Budgeting / Setup / Basic / Dimensions.

Make Budget Models

You can create Budget Models and give submodels if you think it is needed then go to Budgeting > Setup > Basic budgeting > budget models.

Make Budget Codes

You can also use budget codes to classify budget types and for this, you have to go to Budgeting > Setup > Basic Budgeting > Budget Codes. The original budget is used when you are creating an early budget amount for an account. The transfer is used when you are moving a budget amount from one account to another. Revision is used when you are changing the budget amount for an account. Use this kind of budget after you have added to the original budget register for the account.

Make Budget Distribution Terms

To explain the financial dimension values and the percentages that are used to produce budget distributions is Budgeting > Setup > Basic Budgeting > Budget Allocation terms. These budget distribution terms provide an automated way to distribute percentages of budget amounts across financial dimension values.

Make Budget Transfer Rules

To allow the budget transfer rules that you well-defined, select Use rules for budget transfers in the Budget parameters form Budgeting > Setup > Basic Budgeting > Budget Transfer rules, select the account structure and describe rule lines as above mention. You can also copy from existing rule by click the copy button.

Some of the procedures may not make sense to you right now but you will understand them better when you will practice these features on Microsoft Dynamics 365.







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