Budget scenarios are used for planning as well as budget tracking and reporting. They help you analyze your company’s (or division’s or department’s) financial position given certain conditions.

SAP Business One allows you to define these conditions as well as determine the fiscal period during which they apply. Whenever you set up a new company, a scenario called the “main budget” is created automatically. All the checks for budget deviation are done against the main budget. You
can use this scenario as a basis of other scenarios, but you cannot delete the main budget scenario.

When you create a new posting period, you must define the main budget first for this fiscal year. When you run the different budget reports on the
Main Menu > Financials > Financial Reports > Budget reports, you select which scenario to use for comparison. This way you can get insights regarding how your budget may be affected if you increased or decreased the budget amount.

To define the monthly budget amount, go to: Main Menu > Financials > Budget Setup > Budget. Enter debit amount for expenses, and credit for revenues.

To set up budget scenarios, go to: Main Menu > Financials > Budget Setup > Budget Scenarios.

 

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