Budget is a key tool for organizations where an estimated amount is allocated towards expenditure of specific process. Using budgets, organizations have set limitations on spending for a fixed time-period. We have built this as a feature in Aerchain where you can define budgets to a certain facility or a project overall.

Steps to create a Budget

Creating a budget in Aerchain is as seamlessly easy process. Click on the modules button towards the top left corner and navigate to the budget module. Click on the New Budget button to create a new budget and the new budget form will be opened like shown in the image below.

 Follow the below information regarding the fields that are required to create a new budget

Name: Enter a short name that will define the purpose of this Budget

Choose date range: Enter the date range from the start date to the end till the budget will be valid

Budget type: Select the budget type where whether it is a 'Project - Capital expense' or an 'Opex - Stock Expense'. Please note that if you select Project you will need to upload the BOQ whenever something is procured under this budget.

Facility: Select the facility which would be using this budget 

Cost Centre: Select the cost center which would be responsible for the financial aspects of this budget

Company: If there are multiple companies in the same domain select the right one from the drop-down

Department: Select the department that the budget is being allocated to 

Description: Enter a detail block of text that would explain the purpose of this budget

Attachments: Attach any documents that will be used for reference while using this budget

Budget Items: There are two types of budget items that can be added here depending on the budget type we have selected.

• Project: For the budget type 'project' we can add specific list of products and spending against those products under the mapped dimensions will be reflected in the budget allocated
  • Select BOQ as yes and at the budget items line-item level in the actions column, there will be a + button 
    
  • After clicking the + button a new window will be opened for bulk addition of products where you can select the products by searching for them in the search bar or bulk uploading
    
  • Beside the product, click on the + button and it will be added to the panel on the right
  • Change the quantity as per required, this will be reflected in the PR, PO, when creating them under this budget
• Opex: If Opex is selected, you need not add products and a project name is enough. When creating a PO or PR you can select this budget and all the products value will be reflected in this budget
  • Here you need not add the line items level as they do not need any product to be added
  • The project name or sub-divisions in a project can be added as the budget items like shown in the image below for an example
    
• Please note that you can define the budget for multiple products with different dimensions such as different facilities and different cost centers as per necessity

After you are satisfied with the entries done in the budget form please go ahead and click on submit to proceed further. In other scenario where you want to get back to this and do some edits, you can save this form and submit it later.

Once, the submit button is clicked, the budget will go be passed to the respective stake holders for their approval. Once approved, the budget status changes to live depending on the date range defined. After the budget is live, any procurement done that falls under this budget and the corresponding Invoices have been accounted, it will reflect in the view page of that particular budget like shown in the image below.

Please read here to know more about using a budget on a transaction