Originally Posted 5-18-2011
In this Video I show how to maintain Budget Transaction History, Enter Budget Transactions and how I use multiple Microsoft Dynamics GP Budgets in FRx (although it could be Management Reporter, Jet Reports, or any financial reporting tool).
I use multiple budgets to monitor my original budget set at the beginning of the year and an adjusted budget.
The adjusted budget accounts for changes based on actual numbers. Let’s say I budget $100 for sales revenue and expenses as a percent of sales. If my sales were $200, at least some of my expenses should be higher, so I change my adjustment budget using the same percent of sales, but increase or decrease based on the difference between actual revenue and budgeted revenue. This gives me realistic budgets for my expense accounts based on actual sales.