budget assignment in tally erp 9

Budgets in Tally ERP9

A budget is useful to control and monitor the funds efficiently. Multiple budgets can be created in Tally.ERP9 and can be compared with the actual values and variance report can be generated.

How to enable Budget Feature in Tally ERP9

Path: Gateway of Tally -> F11 Features -> Accounting Features

Maintain budgets and controls: Yes

Press enter to save the screen

How to Create Budget in Tally ERP9

Path: Gateway of Tally -> Accounts Info -> Budgets -> Create

Record the payment transactions by using payment voucher

Path: Gateway of Tally -> Accounting Vouchers -> F5 Payment

Telephone Expense A/c Debit

Bank A/c Credit

Printing and Stationery A/c Debit

Travelling Expenses A/c Debit

Displaying Budgets and Variance for groups and ledgers

Path: Gateway of Tally -> Display -> Trail Balance

Click on Indirect Expenses

If you have created budget at group level then select group in Trail Balance

Click on Budget Variance

Select the budget from the list of Budgets

The first column indicates created budget as an “expenses budget”

The second column indicates actual expenses booked

Third column indicates budget variance, if budget exceeded then the excess budget value will display with minus value and percentage.

For more detailed, record telephone expenses with Rs.30,000/- by using payment voucher (F5)

Check the budget report

Click on Budget variance and observe the report

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Introduction to Budget in Tally

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This video tutorial is about the budget in Tally. The introduction of the budget feature in Tally made it possible for users to break down their expenses into different categories and track their spending over time.

What is a Budget?

A budget is a strategy for how much money you'll spend and save. It can be a financial plan, such as the one created by the government, or it can be an individual's personal plan. It can also refer to a list of items that need to be purchased, or it could refer to an amount of money allotted for something.

A budget allows people to track their expenses and save money in order to reach their financial goals. A budget is a plan that outlines the income, expenses, and savings for a given period of time. You may manage your spending and make savings with its assistance.

Budget in Tally

Budgeting is an important part of any business or organisation, but it can be difficult to keep track of all your expenses and income without help. Tally can help you with this that you can use as a guide for your own budgeting needs.

In addition, the budget feature also provides a detailed history of all transactions, which makes it easy to see where you have been spending your money. With this feature, organisations can now better manage their expenses and ensure they stay within their budgeted limits.

The new version of Tally.ERP 9 has made it easier to create, alter, and delete budgets for groups, ledger accounts, and cost centres. This feature helps in better planning for the future of the company or business. A budget feature is a powerful tool that helps users to manage their expenses and income in one place. This makes it easier for them to understand the company's financial position at any time.

In the past, when you created a budget in the ERP system, it was only available to the person who created it. Now with these new features, you can share your budget with other system users so that they can see what is happening with their budgets.

In Tally.ERP 9, you can create a budget for a group of accounts or cost centres by clicking on the "Create Budget" button in the "Budget" section of the Accounts tab.

When creating a budget for an account or cost centre, you will need to provide information such as the start date and end date of the period covered by your budget. You will also be able to set any limits for each line item in your budget by using project type, value range and currency type filters.

The new features in Tally.ERP 9 are aimed at making it easier for you to manage your budgets in your business while providing flexibility and control over how it is done.

What is budget in Tally?

Budget is the amount of money that a company has to spend on a given project. In Tally, budget is the total cost of a project divided by the number of hours spent on it. A budget can be used in different ways:

- To estimate how much money you need to complete a project

- To track how much time you spent on your projects and what tasks are left

Budget is a tool that helps you manage your time and resources. It has become a part of Tally, which is an accounting software.

How do you increase your budget in Tally?

In order to increase your budget in Tally, you need to ensure that you are maximising the revenue from each sale. This can be done by maximising the conversion rate and decreasing your sales cost.

The following are some factors that can help increase conversion rates:

- Use a clear call-to-action at the end of your landing page or ad.

- Make sure that your offer is appealing and relevant to the customer.

- Make sure you have a high-quality product with a good return on investment (ROI).

What are the main features of budget in Tally?

Tally is a free and easy-to-use spreadsheet software that has been around in the market for years. It is popular among small business owners and freelancers who need to track expenses. The main features of Tally are its intuitive user interface, compatibility with both Mac and Windows platforms, and its budgeting feature.

Tally allows you to create budgets for your finances by assigning a budget to each spending category. You can also set up recurring budgets or budgets based on different time frames like weekly, monthly, or yearly. In addition, it offers a lot of features that help you manage your budgets, such as categories and tags, budget reports, and more.

How to create budget in Tally?

Budgets are a way for companies to manage their finances and create budgets. In order to create a budget, you need to go to Gateway of Tally > Accounts Info > Budgets > Create.

The budget creation screen will ask you for the name of your budget. This name is used on all the screens that have anything to do with your budget. So it's important that you choose an appropriate name.

The Budget Creation screen will ask you for your budget's start date and end date and how much money you want it to have at the end of each period. You can also enter a description of what this money is being used for.

Which of the following can be budgeted in Tally?

Budgeting is possible for Net Transaction and Closing Balance in Tally. The following are some of the ways that Tally allows you to budget in your account:

- You can budget for a specific category like Cash or Income.

- You can set up a recurring transaction like rent or mortgage.

- You can set up automatic transactions like a recurring monthly expense, like your cell phone bill.

How do you activate a budget in Tally?

A budget is a primary tool for managing the company's financial resources. It helps in tracking expenses and operating cash flow. It is also used to determine the number of funds allocated for various projects and other activities. The budget feature in Tally is activated by pressing: 

Type Alt+G (Go To) followed by Alter Master, Budgets, and Enter. Otherwise, enter by selecting Gateway of Tally > Alter > Budgets.

What is the introduction of budget?

What are the types of budget.

• Budget master. A master budget is a compilation of lower-level budgets prepared by various
• organizational functional divisions.
• Budget for operations.
• Budget in cash.
• Budgeting for money.
• Budget for the Labor Party.

How can I enter budget in Tally?

• Tally Gateway > Create > Budgets > and then hit Enter.
• Give your budget a name.
• To access the Ledger Budget page, set the option Ledgers to Yes.
• Choose the appropriate Ledger Name.
• Decide on a budget kind.
• Fill in the Amount.
• Press the Enter key.

What is the purpose of budget?

What are benefits of budgeting, learner's ratings.

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ITC Adjustment & ITC Setoff

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Banking Transactions

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Budget & Operating Expense

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Cost Centers

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Sales Process & Transactions in Tally

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POS - Point of Sale

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Introduction to Godown Transactions in Tally

Billed quantity discount in tally, assignmnet : godown & actual bill.

Stock category & Price list

Stock category in Tally

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Multi Currency

Multi Currency in Tally

Assignment : multy currency.

Manufacturing Process

Introduction to Manufacturing Process in Tally

Manufacturing process transactions in tally, understanding manufacturing process with by product in tally, assignment : mfg process.

Item Cost Tracking & Batch Detail

Item cost tracking in Tally

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Financial MIS Reports in Tally

Inventory mis report in tally, mix supply in tally, assignment : mix supply.

GST Detail Report

GST Detail Report in Tally

Introduction of payroll, payroll transactions in tally, payroll reports in tally, payroll statutory reports in tally, assignment : payroll.

Additional Function of Tally

Additional functionalities in Tally

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How To Resolve 9 Common Conflicts In Project Management

Based in Vancouver, BC, Mark leads the capital projects and infrastructure advisory practice with a major professional services firm. He brings 5+ years of experience in engineering and project management, and a passion for the natural and built environment. His work with projects has taken him all over the world.

The only constant on projects is change—and conflict, stemming from everything from scope creep to limited resources. The more you encounter conflict, the better you'll be able to prevent it from derailing your project. Here are a few you're likely to encounter and how to resolve them.

Conflicts are Inevitable: You can't avoid the conflict that comes with teamwork, so it's important to develop strong conflict resolution skills and a sense of how to transform problems into opportunities for collaboration.

Navigating Miscommunications: Misunderstandings can disrupt progress, so it's imperative to clarify expectations from the start and model good communication for the rest of the team.

Teamwork Makes the Dream Work: Successful project management heavily relies on teamwork, and you need to foster an open, collaborative environment that increases morale and the chances of project success.

From miscommunications to scope creep, conflicts are bound to pop up on any project and will test your problem-solving as a project manager. 

I’ll explore some of the most common types of conflict that can arise and provide you with some practical conflict resolution solutions to navigate them smoothly.

These tips will improve your conflict management, help you maintain your composure, create win-win scenarios, and keep your projects on track.

1. Scope Creep

Scope creep is the sneaky expansion of a project's goals and deliverables beyond what was originally agreed upon. It’s when a seemingly simple website redesign balloons into an entire ecommerce platform—with all the trimmings—without any adjustments to the budget or timeline.

Example conflict situation : You're managing a project to launch a new software tool. Initially, it was just supposed to include basic features. But as you progress, stakeholders start asking for additional functionalities.

Before you know it, you've added a CRM system, a mobile app, and integration with every other tool on the market. Your original timeline is in tatters and your budget? Let’s just say it’s not looking good.

Conflict resolution techniques to manage scope creep:

• Clearly define project requirements upfront : Detail every deliverable, set clear expectations and get stakeholder buy-in from the start.
• Consider change control processes in your project management plan : Any addition to the scope should require a formal review and approval. This process helps manage expectations and keep everyone aligned.
• Communicate regularly : Keep all stakeholders in the loop about how additional requests will impact timelines and budgets. Active listening and transparency can help curb unnecessary scope expansions.

2. Poor Communication

Communication issues can undermine even the most well-planned projects. Without effective communication, misunderstandings proliferate, deadlines are missed, and frustration grows. It’s like a game of “telephone” where everyone hears a different message, and no one knows what’s actually going on.

Example conflict situation : Imagine your team is spread across different continents. You send out an urgent email about a critical task, but due to time zone differences, half the team doesn’t see it until the following day. Meanwhile, the other half acts on outdated information. Chaos ensues, and the project timeline takes a hit.

Conflict resolution tips to improve open communication:

• Set clear communication protocols : Decide on the best channels for different types of communication. For instance, use Slack for quick questions and email for formal updates.
• Leverage project management tools : Tools like Asana or Trello can help keep all communication in one place, which reduces the chances of things falling through the cracks.
• Regular check-ins, but not too many : Be an active listener and practice emotional intelligence. Balance is key—too few meetings and you risk misalignment; too many and everyone becomes a Zoom zombie.

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3. Resource Conflicts

Resource conflicts happen when multiple projects compete for the same resources—whether that’s budget, equipment, or human talent. Think of it as several people fighting over the last piece of cake: someone is bound to be left unsatisfied.

Example conflict situation : Two departments both want the same senior developer to work on their projects. The developer is torn between priorities, overworked, and unable to deliver high-quality work on either project. This results in delays and frustration all around.

How to resolve conflicts in resourcing:

• Prioritize projects : Rank projects by strategic importance and allocate resources accordingly. Not all projects are created equal, and the most critical ones should get the most attention.
• Flexible staffing : Consider hiring temporary staff or freelancers to manage peak workloads without overburdening your core team.

Treat your resources like a well-curated buffet—make sure everyone gets what they need without overloading their plate. And remember, nobody likes to see someone hogging all the shrimp.

4. Unclear Roles And Responsibilities

When roles and responsibilities aren’t clearly defined, tasks can either fall through the cracks or get duplicated. It’s like trying to play football with no designated positions—everyone’s running around, but no one knows who’s supposed to score.

Example conflict situation : On a content creation project, one team thinks the writers are also responsible for editing, while the writers assume there’s a separate editing team. The end result is a heap of unedited content and a lot of finger-pointing.

Conflict resolution strategies for resolving conflicts before they happen:

• Create a detailed RACI chart : This chart clarifies who is responsible, accountable, consulted, and informed for each task. It’s a straightforward way to prevent confusion and ensure everyone knows their role. Of course, there may be changes down the road, so try and anticipate these as best as possible and document a strategy in your project management plan.

5. Stakeholder Disagreements

Stakeholder disagreements can feel like being caught in a family feud. Different departments or key players have conflicting priorities or visions for the project, and you’re left in the middle, trying to find common ground. It’s a classic case of “too many cooks in the kitchen.”

Example conflict situation : Your design team wants to prioritize aesthetics, while the engineering team insists on functionality. Both are vital, but their inability to agree leads to team conflict and a stalemate, stalling the project and causing frustration on both sides.

How to manage stakeholder disagreements:

• Facilitate regular stakeholder meetings : Bring everyone together to discuss their concerns and priorities. This creates a forum for open dialogue and problem-solving.
• Document key decisions : Keep a record of every agreement and decision made. This reduces the chances of backtracking and rehashing old debates.

6. Unrealistic Deadlines

Unrealistic deadlines are the bane of any project manager’s existence. They lead to rushed work, stressed-out team members, and, ultimately, a lower-quality product. 

Example conflict situation : A tech startup wants to launch a new app feature in a month, despite the development team’s warnings that it will take at least three months to develop and test properly. The result is a rushed, buggy release that frustrates users and damages the brand’s reputation.

Effective conflict resolution tips to handle unrealistic deadlines:

• Break down tasks into manageable chunks : Focus on delivering small, incremental milestones rather than everything at once. This approach can help keep the project on track, even if adjustments are needed.

If you can’t negotiate a longer timeline, try to negotiate the scope. If the deadline is immovable, make sure everyone understands what can realistically be delivered within that timeframe.

7. Inadequate Risk Management

Risk management might not be the most glamorous aspect of project management, but it’s certainly one of the most critical. When risks are ignored, they have a nasty habit of becoming reality at the worst possible time.

Example conflict situation : A project team is developing a new app but fails to anticipate potential delays due to third-party integrations. Halfway through, a key vendor delays its integration, causing a ripple effect that pushes the launch date back by several weeks.

How to improve risk management:

• Conduct a risk assessment early on : Identify all possible risks and their potential impact on the project. Prioritize them based on likelihood and severity.

8. Budget Overruns

Budget overruns are all too common in project management. They happen when costs exceed the original project estimate , often due to poor planning, unexpected expenses, or scope creep. It’s like trying to build a house with an unlimited appetite for granite countertops—costs quickly spiral out of control.

Example conflict situation : A marketing project aimed at launching a new product is underestimated in terms of the budget needed for digital ad spend. As the campaign progresses, additional funds are required to meet targets, leading to budget overruns and tough financial decisions.

How To Avoid Budget Overruns

To effectively avoid budget overruns, it’s essential to implement a robust cost control strategy from the outset. Here’s a more detailed approach to keeping your project finances in check:

1. Create a Comprehensive and Realistic Budget Plan

A well-crafted budget plan should be as detailed as possible. It must account for all potential costs, including those that might seem unlikely or are traditionally overlooked. The more specific you are, the fewer surprises you’ll encounter.

• Include all direct and indirect costs : This means not just materials and labor but also overhead, taxes, software licenses, contingency costs, and any other expenses that could arise. For example, if you’re planning a digital marketing campaign, don’t just account for ad spend—also consider design, copywriting, monitoring tools, and post-campaign analysis.
• Factor in a contingency buffer : Typically, you should set aside about 10-20% of the total budget as a buffer for unforeseen expenses. This cushion allows for flexibility and prevents minor setbacks from becoming major financial crises.

2. Implement a Rigorous Cost Tracking System

Tracking expenses in real-time is crucial to preventing budget overruns. By keeping a close eye on your spending, you can quickly identify any deviations from the budget and take corrective actions before things spiral out of control.

• Use project management software with cost tracking features : Tools like Microsoft Project, Asana, or Monday.com offer budget tracking features that integrate directly with your project plan, allowing for seamless monitoring of both costs and project progress.
• Regularly update your budget tracking sheet : Make it a habit to update your budget sheet daily or weekly, depending on the project’s pace. This practice ensures that every expense is accounted for and provides a clear picture of where you stand financially.

3. Establish Cost Control Policies and Procedures in Your Project Management Plan

Having clear policies and procedures for managing costs can help prevent budget overruns. These policies should outline how expenses are approved, tracked, and reported.

• Set up a cost approval process : Define who has the authority to approve expenditures and set thresholds for different levels of spending. For example, minor expenses might require only a manager’s approval, while significant costs may need executive sign-off.
• Regular financial reviews and audits : Schedule periodic budget reviews and audits to assess spending and adjust the budget as needed. These reviews should involve key stakeholders to ensure transparency and accountability.

4. Monitor and Manage Scope to Prevent Scope Creep

Scope creep is one of the leading root causes of budget overruns. As new tasks or features are added without corresponding budget increases, costs can quickly spiral out of control.

• Conduct regular scope reviews : Regularly review the project scope with stakeholders as part of your project management plan to ensure that any changes are formally approved and documented. Use a change control process to evaluate the impact of scope changes on the budget and timeline.
• Implement a change request process : Require a formal change request for any additions to the project scope. This request should outline the impact on budget and schedule, ensuring that stakeholders understand the financial implications before approving any changes.

5. Optimize Resource Allocation and Reduce Waste

Efficient use of resources is critical to controlling costs. By optimizing how resources are allocated and reducing waste, you can make the most of your budget.

• Use resource management tools : These tools help in allocating resources effectively, ensuring that team members are not overburdened or underutilized. Proper resource management prevents overtime costs and reduces the need for additional hires or freelancers.
• Negotiate with suppliers and vendors : Regularly review contracts with suppliers and vendors to ensure you’re getting the best deals. Consider renegotiating terms or seeking alternative suppliers if costs are higher than expected.
• Encourage cost-saving initiatives : Foster a culture where team members are encouraged to suggest cost-saving ideas. Simple actions, such as reducing unnecessary meetings or opting for less expensive software tools, can add up to significant savings over the course of a project.

6. Engage Stakeholders in Cost Management

Keeping stakeholders informed and engaged in the project management and budget management process can prevent surprises and ensure everyone is aligned on financial priorities.

• Regular stakeholder updates : Provide stakeholders with regular updates on the project’s financial status, including any variances and the reasons behind them. This transparency builds trust and facilitates more productive discussions about budget adjustments.
• Collaborative decision-making : Involve stakeholders in discussions about major financial decisions, especially those that might impact the overall project scope or objectives. This ensures buy-in and helps in making decisions that are in the best interest of the project.

9. Team Dynamics

Working with a diverse, global team can lead to unique challenges—particularly when cultural differences impact communication and collaboration. It’s like trying to conduct an orchestra when each musician is playing a different tune. Harmony is possible, but it requires careful coordination.

Example conflict situation : A global marketing campaign is being managed by a culturally diverse team. Different team members have varying expectations about work hours, the work environment, deadlines, and meeting formats, which can lead to misunderstandings and conflicts.

Conflict resolution when navigating cultural differences:

• Foster cultural awareness and sensitivity : Conduct workshops or training sessions to help team members understand and respect each other’s cultural norms.
• Adapt communication styles : Be flexible and open to adjusting your approach based on the cultural context of your team. Patience and active listening are key. 

Embrace the variety, but make sure you have a good mix of personalities that complements rather than clashes with team dynamics and enhances teamwork.

What’s Next?

Managing conflicts effectively is key to project success. By understanding these common conflicts and implementing a mix of strategic and practical solutions, you’ll upgrade your conflict resolution skills and be better prepared to keep your projects on track and your stakeholders happy. 

Remember, a great project manager is not just a master of schedules and budgets but also a skilled mediator, problem-solver, and strategist.

Want to connect with other project managers to share resources and best practices? Join our membership community and get access to 100+ templates, samples, and examples, and connect with 100s of other digital project managers in Slack.

12 Conflict Resolution Techniques Project Managers Must Know

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₹ 1200 crore luxury high-rise project coming up near Sarjapur in Bengaluru

Nbr group announces the acquisition of a prime 9.65-acres land parcel in the prestigious sarjapur-mullur suburb of bengaluru..

NBR Group, a leading Bengaluru-based real estate developer, is thrilled to announce the acquisition of a prime 9.65-acres land parcel in the prestigious Sarjapur-Mullur suburb of Bengaluru. This strategic acquisition will facilitate the development of a luxurious high-rise residential project valued at over Rs1200 crore.

The ambitious project will feature an impressive saleable area of approximately 9 lakh square feet, with an anticipated gross development value exceeding Rs1200 crore. Designed to redefine luxury living, this development will include state-of-the-art amenities, sustainable building practices, and premium residential spaces that cater to the discerning tastes of modern homebuyers.

"We are thrilled to announce the acquisition of this prime land parcel in Sarjapur-Mullur, Bengaluru. This area represents a mature market with a robust demand for residential real estate and a limited supply of land," said Nagabushana Reddy, Managing Director of NBR Group. "This project marks a significant expansion for NBR Group in the luxury housing segment, catering to the high demand for premium residential spaces in Bengaluru. Our commitment to quality and excellence will ensure that this project sets new benchmarks in the industry," added by the Manging Director.

The Sarjapur-Mullur area is known for its excellent connectivity, proximity to key IT hubs, and access to top-tier educational institutions, making it a highly sought-after location for residential developments. The new project by NBR Group will not only enhance the urban landscape but also provide a unique blend of modern living and natural tranquility.

NBR Group has a long-standing reputation for developing high-quality residential projects that meet the evolving needs of homebuyers. With a focus on innovation, sustainability, and customer satisfaction, the company has consistently delivered exceptional living spaces that stand the test of time. This latest project further cements NBR Group's position as a leading developer of luxury residences in Bengaluru.

For more information about the project and future updates, please visit www.nbrgroup.in.

NBR Group is a renowned real estate developer based in Bengaluru, known for its commitment to quality, innovation, and customer satisfaction. With a diverse portfolio of residential and commercial projects, NBR Group continues to set new benchmarks in the real estate sector, delivering exceptional living and working spaces that cater to the modern lifestyle.

• ₹ 1200 crore luxury high-rise project coming up near Sarjapur in Bengaluru','cta_text':'Bengaluru','article_id':'101727263934599','article_category':'cities','publish-date':'Sep 25, 2024 05:30 PM IST','logged_in_status':(getCookie('ht_token') ? 'logged_in':'non_logged_in'),'user_ID':(getCookie('ht_token') ? getCookie('_ht_clientid'):'NA')});" > Bengaluru
• ₹ 1200 crore luxury high-rise project coming up near Sarjapur in Bengaluru','cta_text':'Real Estate News','article_id':'101727263934599','article_category':'cities','publish-date':'Sep 25, 2024 05:30 PM IST','logged_in_status':(getCookie('ht_token') ? 'logged_in':'non_logged_in'),'user_ID':(getCookie('ht_token') ? getCookie('_ht_clientid'):'NA')});" > Real Estate News
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Create, Alter, and Delete Budgets in TallyPrime

Every business must control its expenses and keep track of their incomes. A budget helps to achieve such expense control and income tracking. In TallyPrime, you can create budgets and also alter or delete a budget. In case there is a budget variance, you can also view the same and analyse reasons for such variance.

A budget is a plan prepared for the flow of funds in an organisation. Budgets help you to refine goals and use funds efficiently. It provides accurate information for the evaluation of financial activities, aids in decision-making, and provides a reference for future planning. The purpose of a budget is to estimate the expenses and income for a particular period. Such estimation helps you to work towards the execution of the plan to achieve better organisational performance. With the help of a budget, you can also see the variance between a planned budget for expenses and income and an actual expense and income. The variance between budget and actual helps you to take an informed decision on how to increase the revenue and control the expenses.

TallyPrime provides you with the flexibility to create budgets for  ledgers, groups, and cost centres , as per your requirement. For example, if you want to control the overall Indirect Expenses, then you can create a budget for the Indirect Expenses Group. Similarly, if you want to set a target for your income from Commission, you can create a budget for the Commission Ledger. Apart from ledgers for the indirect income you can create similar kinds of budgets for your indirect expenses. Additionally, in your business, if you have multiple departments for which you want to monitor the expense and income, you can set a budget too for the departmental cost centres. All these budgets help you to estimate your probable expenses and achievable incomes.

You can create multiple budgets in TallyPrime for specific purposes. For example, you can create budgets for Banks, Head offices, and Departmental budgets like Marketing Budgets, Finance Budgets, and so on. You can compare the budgeted figures with Actual figures and generate the budget variance report . Since a budget is an estimation of expenses and income and not an actual accounting entry it does not impact the books of accounts.

Create a Budget

In an organisation, budgets are created to set a plan and financially control expenses and incomes. The target is to increase income and control expenses to get a better financial position. In this process, you can create budgets for groups, ledger accounts, and cost centres depending on your business requirement. If you want to set up a budget for an entire Group, instead of a particular ledger like Indirect Expenses then you need to create your budget for Groups. But in case, you want to monitor all the expense ledgers under Indirect Expenses separately, then you need to create a budget for Ledgers. Apart from Groups and Ledgers, budgets are created for Cost Centres as well. Budgets for Cost Centres are created when you want to monitor department-wise your expenses or income and even employee-wise to see which employee is incurring more expenses and which employee is earning more revenue. All this leads to identifying the solution to improve the performance of your organisation. You can create multiple budgets, each for a specific purpose.

You can also have a hierarchical setup for budgets in TallyPrime. Budget hierarchy is used to define the budget structure of an organisation. Suppose, you want to create a budget for the overall department, you need to create the budget under Primary  from the  List of Budgets . After the Department Budget is created, you can further go ahead and create specific Department Budgets such as Sales Department Budget, Marketing Department Budget and so on under the main Department Budget. This shows the budget structure in a hierarchical form.

You can create budgets based on Nett Transactions and on Closing Balance. If you want to monitor the transaction amounts and not the overall balance, you need to select  On Nett Transactions . This means, for  On Nett transactions  budgets, the debit amount for the specified period (after reducing the credits for the same period) is considered without taking into account opening and closing balances. On the other hand, if you want to monitor the balance of the accounts and not transactions then you need to select  On Closing Balance . This means each month will have the same budget value, except that the actual  Opening Balance  is also taken into account.

In this section

Create Budgets for Ledgers

Create budgets for groups, create budgets for cost centres.

In TallyPrime, you can create budgets for individual ledgers and see the variance between the planned and actual budget. This helps you to view how far were you able to achieve the set budgets and the reasons for not achieving them. You can create a budget not only for your expense ledgers but also for your income ledgers.

For example, your company provides transportation costs to your employees, but you want to monitor such expenses. In that case, you can create a budget for the transportation ledger created under the expense ledger and track the expenses incurred. In case you see a variance between the budgeted and actual expenses you can take a decision on how to control the expenses.

Depending on how you want to set your budgets based on the balance of accounts or on the transaction amounts, you can decide to select the  Type of Budget  either as  On Nett Transactions  or  On Closing Balance .

• Press  Alt + G  (Go To) >  Create Master  >  Budgets  > and press  Enter . Alternatively, go to  Gateway of Tally  >  Create  >  Budgets  > and press  Enter . 
• Enter a  Name  for the budget.
• Set the option  Ledgers under Set/Alter Budgets of to Yes . The  Ledger Budget  screen appears.
• Accept the screen. As always, p ress   Ctrl + A  to  save the  Budget Creation  screen.

Once the budget is created for the respective ledgers, you can check whether the expenses are incurred within the budget set or it has exceeded the budget. Accordingly, you can take the decision to control the expenses so that it does not exceed the budget.

You  may have created a group for your advertising expenses that entail expenditure on digital marketing, print advertising, participation in business exhibitions, and others. In such a case, you can create budgets for the group created for advertising expenses. Creating a budget for the group will help you control the expenses on advertising and plan for the funds required for all the  activities .

Moreover, you can also view the budget variance report for a particular group to know the difference between the actual expense incurred on the ledgers under a group and the budget set for the group.

You can create budgets in TallyPrime for groups like expenses, sundry debtors, sundry creditors, and more. This budget will apply to all ledgers created under these groups. 

Select the  Type of Budget  as  On Nett Transaction  or  On Closing Balances  depending on your budget requirement.

• Press  Alt + G  (Go To) >  Create Master  >  Budgets  > and press  Enter . Alternatively, go to  Gateway of Tall y >  Create  >  Budgets  > and press  Enter . 
• Set the option  Groups  to  Yes . The  Group Budget  screen appears. 
• Accept the screen. As always, press  Ctrl + A  to save the  Budget Creation  screen.

With the budget created for Groups, you can track at a Group level whether the  expense or income i s within the budget. If the  expenses exceed  the budget then you can plan to control the expenses. 

Similar to creating budgets for ledgers and groups, you can also create budgets for cost centres. For example, you want to track the expenses and income of each department in your organisation. Then you can create cost centres for different departments such as Sales Department, Finance Department, Research Department and so on and create budgets for them. Moreover, you may also want to know the difference between the actual expenses under a cost centre and the budget set for the same which you can view in the budget variance report.

To create a budget for cost centres ensure that the option Enable Cost Centres is set to Yes in the Company Features.

• Press  Alt + G  (Go To) >  Create Master  >  Budgets  > and press  Enter . Alternatively, go to  Gateway of Tally  >  Create  >  Budgets  > and press  Enter .
• Set  Cost Centres  to  Yes . The  Cost Centre Budget  screen appears.

After the budget is created for cost centres, you can track the expenses and income to see if they are within the budget.

Alter a Budget

Based on the financial situation of the company, market inflation, a need to cut costs, or to increase or decrease investment in a particular function, you may need to alter budgets created for groups, ledgers, or cost centres.

You can enable the facility to alter a budget in TallyPrime and then make the necessary changes, as per your requirement. 

• Press  Alt + G  (Go To) >  Create Master  >  Budgets  > and press  Enter . Alternatively, go to  Gateway of Tally  >  Alter  >  Budgets  > and press  Enter .
• Modify the  Name  and  Period of Budget , as needed.
• Set the option  Set/Alter Budgets of  to  Yes , for  Groups ,  Ledgers , or  Cost Centres .
• Make the required changes.
• As always press  Ctrl + A  to save the  Budget Alteration  screen.

Delete a Budget

In your business, there may be situations that:

• You have created budgets in TallyPrime for certain projects that are cancelled. For example, you have created a budget for print advertising and your organization has decided to advertise only digitally.
• You have created a budget and want to split the budget into two or more separate budgets, based on the nature of work. 
• You want to merge two budgets created in TallyPrime, as the budgets fall under the same nature of work or project.

In such cases, you will want to delete an existing budget in  TallyPrime . 

• Press  Alt + G  (Go To) >  Alter Master  >  Budgets  > and press  Enter . Alternatively, go to  Gateway of Tally  >  Alter  >  Budgets  > and press  Enter .
• Select the required budget.
• Press  Alt + D  and press  Y  to delete.

As a budget is only an estimation you can delete  a budget without any dependency. You can delete a budget even if there  is a transaction in the ledger, group or cost centres for which you have created the budget.

View Budget Variance

Budgets give you an estimation of the expenditure that you can incur in your business for a particular work, department, or project. However, there may be some difference between the actual expenses and the respective budgets. The budget variance report provides you with information on the actual expenses as compared to the budget. This helps you plan for the future and facilitates financial control in your business.

You can view the Budget Variance report from Trial Balance, Group Summary, and Monthly Summary. Budget Variance is active when at least one budget is created.

To view Budget Variance from the Group Summary, press Alt+G (Go To) > type or select Group Summary > press Enter and select the required group.

If the  Budget Variance  shows a negative value, it means that the actual expenditure has exceeded the budgeted value.

Related Topics

• Financial Controlling Using TallyPrime
• How to Create Scenarios in TallyPrime
• How to Create Cost Centre in TallyPrime
• How to View Cash Flow and Cash Flow Projection…
• How to View Funds Flow Statement in TallyPrime

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