Budget Your Business Operations In Odoo

Budgeting process is the most effective way to keep your business and its finances on track. For a growing business you may not always be able to hands-on with every part of it. You may have to split your budget between areas such as sales, purchase, marketing, etc:-(Budgetary Positions). So the budget allows you to measure your actual financial performance against the planned one.

Here, we are going to explain how Odoo can be used to manages the budget of a company. Odoo manages budget using both general and analytic accounts. Let’s discuss how to create budgetary positions, how to create a budget and budget reporting.

Installing Budget Management

Firstly we have to install Budget Management module in Odoo,
Go to Settings ——–> Configurations ——-> Accounting ——–> Click Budget Management ——–> Click Apply.
Budget Management module will be installed.

Creating Budgetary Positions

Before creating a budget, we have to create some budgetary positions for sales,expenses, salary, etc;-. This budgetary positions will logically group general accounts for which we want to keep budget according to sales and purchases.
We will discuss the rest with an example of company named Bio Food Channel.

Go to Accounting ——-> Configurations ——–>Budgets ———> Budgetary Positions.

Then create some  budgetary position for sales.
Click on Create. Enter the details such as Name.Code and add some sales account from your account page and Click on Save.

Likewise create the budgetary positions for expenses and salary.

Creating Budget

Go to Accounting ——–> Budgets ———->  Budget.
Click on Create. Enter the details company name, code of the company/contract, duration of budget and the budgetary lines such as budgetary positions (sales or expenses), planned amount (-15000 and 25000 for sales and expenses respectively).

Save the details and click on Confirm. Then Approve it.

There is a progress bar in the top of the table where shows Draft, Confirmed and Validated states.
Confirmed state means the budget can be still changed before actual approval.
Validated state means the budget is approved by the budget owner and the name of the user approving the budget will be displayed in the validate user field.
When we click on Done, the budget is fully approved and no more changes will be allowed. You can no longer cancel the budget and reset it to Draft.

Now the budget for the company Bio Food Channel is successfully created, confirmed and approved and you can see in the budget that the planned amount is as same as we entered. But there are changes in the practical amount because we have been making entries in our accounting  for this analytic account. So the practical amount for sales and expenses has been added.
Percentage for a budget can be calculated as ,
Percentage = ( Practical amount/Theoretical amount)*100

Budget reporting can be done by just clicking on the Print option. We can have the printed copy of the budget or each budgetary positions.

If we have defined the budget for any project, we will be able to see the running budget status from related contract of that project. Please see the screenshot below: