Budget Methods

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On the G/L Budget Maintenance screen, you select a budget method to specify budget method options that are used to calculate budget period amounts.

For more information about using this screen, see G/L Budget Maintenance Screen.

Budget Methods
Method	How to Use	How Budget Amounts are Calculated
Base with Amount Increase	When you select this option, the following fields appear: Base Amount. In this field, enter the base amount you want to begin with (that is, the amount for Period 1). Amount Increase. In this field, enter the amount by which the base amount should be increased.	Periods use amounts that are calculated as follows: Period 1 = base amount Period 2 = base amount + amount increase Period 3 = Period 2 amount + amount increase General Ledger continues to calculate budget amounts in this manner until all periods have a budget amount.
Base with Percent Increase	When you select this option, the following fields appear: Base Amount. In this field, enter the base amount you want to begin with (that is, the amount for Period 1). % Increase. In this field, enter the percentage (in decimal notation) by which the base amount should be increased.	Periods use amounts that are calculated as follows: Period 1 = base amount Period 2 = base amount × percent increase Period 3 = Period 2 amount × percent increase General Ledger continues to calculate budget amounts in this manner until all periods have a budget amount.
Fixed Amount	When you select this option, the Fixed Amount field appears. In this field, enter a fixed amount.	Each period uses the fixed amount you specify.
Copy As Is	This option uses the exact amounts in the Fiscal Set Amount column.	Each period uses the exact amount in the Fiscal Set Amount column.
Copy with Amount Increase	When you select this option, the Amount Increase field appears. In this field, enter the amount by which fiscal set amounts should be increased.	Each period uses the amount in the Fiscal Set Amount column plus the amount in the Amount Increase field.
Copy with Percent Increase	When you select this option, the % Increase field appears. In this field, enter the percentage by which fiscal set amounts should be increased.	Each period uses the amount in the Fiscal Set Amount column increased by the percentage in the % Increase field.
Copy with Prorated Spread	When you select this option, the Spread Amount field appears. In this field, enter the amount you want to prorate to the individual periods. Note: In a multicurrency system, you must enter the source and functional equivalents of other currencies separately if you want both sets of numbers. To calculate the functional equivalent from a source amount, inquire on the source amount, and then use the percent increase budget method. If the rate is less than one, use a negative percent increase (calculated by subtracting the rate from 1).	The amount for each period is calculated using the following equation: (the amount in the Fiscal Set Amount column ÷ total of all amounts in the Fiscal Set Amount column) × the amount in the Spread Amount field In other words, a ratio (weight factor) is calculated by dividing each individual period’s fiscal set amount by the sum of the fiscal set amounts for all periods. That weight factor is then multiplied by the spread amount to arrive at each period’s budget amount.
Spread Amount	When you select this option, the Spread Amount field appears. In this field, enter a spread amount.	The spread amount is distributed evenly across all periods. Note: If the amount cannot be divided evenly, the remainder is added to the last period.