TallyPrime, ERP 9, is a powerful accounting software that allows users to create multiple budgets for specific purposes. These budgets can be created for banks, central offices, departmental budgets such as marketing and finance budgets, and more. In addition, you can also create budgets for groups, accounting accounts, and cost centers. With TallyPrime, you can create several budgets for different purposes and have a hierarchical configuration for them.
The Budget List in TallyPrime is at the top of the hierarchy and you can create several main budgets as needed. You can also view the budget variance to know the difference between actual spending and the budget set for a specific ledger. If the budget variation shows a negative value, it means that the actual expenditure has exceeded the budgeted value. Incremental budgeting takes the real figures from last year and adds or subtracts a percentage to obtain the current year's budget.
Value proposition budgeting is a way of thinking that everything included in the budget adds value to the company. Activity-based budgeting is a type of top-down budget that determines the amount of inputs needed to support the objectives or products set by the company. The budget variance report provides you with information on actual expenses compared to the budget. Creating a budget for the group will help you control advertising expenses and plan the funds needed for all activities. You can create budgets in TallyPrime for groups such as expenses, diverse debtors, diverse creditors, and more.
Depending on your company's financial situation, market inflation, or need to reduce costs or increase or decrease investment in a given function, you may need to modify the budgets created for groups, accounting books or cost centers.