Budget Planner

A Budget Planner is a tool used within Salesforce that helps users or businesses organize and manage their financial resources efficiently. It allows for the creation and management of different types of budget plans depending on the specific project or goal. Here’s an easy-to-understand breakdown of the important points and features, focusing on each type of budget plan: Key Features of Budget Planner:

1. Centralized Management: All financial planning happens within Salesforce, meaning you can link budgets directly to projects, departments, or customers.
2. Flexibility: The planner supports three different types of budget plans, allowing for diverse project management needs.
3. Tracking & Forecasting: Users can track expenses and adjust the budget accordingly as projects progress.
4. Real-Time Visibility: Since it’s integrated with Salesforce, users get up-to-date insights into financial health and project status.

Types of Budget Plans:

1. 1. Cost Budget:
      • Purpose: Ideal for projects where the primary concern is controlling costs.
      • How it works: You define an overall cost limit, and the planner tracks expenses against this. It helps ensure that spending does not exceed a set limit.
      • Use case: Useful for internal projects or when managing fixed costs like overhead, salaries, and fixed resources.
   2. Time and Material Budget:
      • Purpose: Suitable for projects where costs are directly tied to hours worked and materials used.
      • How it works: The budget is calculated based on time (labor hours) and materials consumed during the project. It allows for flexibility, adjusting based on work done.
      • Use case: Ideal for service projects, consulting work, or construction, where time and resources fluctuate.
   3. Fixed Budget:
      • Purpose: Best for projects with a set budget and deliverables.
      • How it works: The budget is fixed, and the project must be completed within this financial limit. Any adjustments to the scope may require re-negotiation.
      • Use case: Often used for client projects with a clear start and end, like software development or a marketing campaign.
   

Cost budget A cost budget allows you to create budget plans with an initial budget for projects. This type of budget can be adjusted later as needed. Time and material budget: Similar to the cost budget, but here the budget is allocated for both materials and time-based work, allowing for flexible tracking of resources and labour. fixed budget: It is similar to the cost budget plan, but once the budget is set, it cannot be changed. NOTE: The budget is allocated for the projects from the Project workbench. Steps to Create a New Project Workbench:

• Go to the Project Workbench tab.

• Click on the New Project button. This will navigate you to a new page.

• Enter the required details, such as the project name, manager, organization, start and end dates, etc.

Once filled click on the save button will be renavigated to Project Workbench. You can allocate a budget for the created project from the Project Workbench by using the Allocate Budget button Steps to Create a New Cost Budget Plan:

•  Navigate to the Budget Tab:

 Open the App Launcher and select the Budget tab to view existing budget plans. Use search or filters to find plans by organisation and year.

•  Search/Filter Plans:

 Search or filter budget plans by year and organisation to find the one you need.

•   Create a New Budget Plan:

Click “New Budget Plan,” select the budget type (e.g., Cost Budget), and you’ll be taken to the Budget Allocation page. Select Year and Organization: Choose the year and the organization for which the budget plan is being created.

• Set Threshold Limit: In the budget configuration, you can set a threshold limit. By default, this is set to 90%, meaning you will be notified when 90% of your budget is consumed.

• Choose Budget Periodicity:

Select the periodicity of the budget (monthly, quarterly, or yearly). By default, it is set to monthly, meaning the budget applies to the current month.

• If quarterly is selected, you will be asked to enter the budget for four quarters.

• If yearly is selected, you will need to enter the budget amount for all 12 months.

• Available Funds Calculation:

Choose between “Posted Actual Expenditure” or “No Posted Actual Expenditure.” If you select Posted Actual Expenditure, expenses will be reflected in the journal during billing.

• Select the Project:

In the project section, choose the project for which the budget is being set.

• Budget Sub-Category:

Select the budget sub-category, which will auto-populate related account details.

• Note: Budget sub-categories come from the Chart of Accounts tab. You can either select an existing sub-category or navigate there to create a new one if necessary.

Note: In the chart of account check if available for budgeting process is enabled.

• Allocate Budget:

Enter the budget amount for the selected sub-category.

• Add Additional Sub-Categories:

If needed, click the New button to allocate the budget for additional sub-categories

• Save the Budget Plan:

Click Save to store the budget plan

• Find or Edit the Budget Plan:

The budget plan will be saved for the selected organization. You can find it using the search box or by filtering by organization. Click on the name of the budget plan to edit or modify it.

• Draft Status:

The newly created budget plan will be saved as Draft. You can edit or delete it at this stage.

• Submit for Approval:

Once you verify all the budget details, click the arrow icon and then select Submit for Approval. The status will change to Submitted for Approval. Note: When a budget plan is in Submitted for Approval status, it cannot be edited but can still be deleted by clicking the delete icon.

• Approval Process:

An email will be sent to the assigned user for approval. Once approved, the status will change to Approved. Alternatively, you can go to the Budget Plan tab, select the budget plan to approve, and approve it on the related page. 2. New Time and Material Budget Plan

• Follow the Cost Budgeting Steps:

The process for creating a time and material budget plan is similar to that of a cost budget.

• Key Differences:

You can create a budget for both materials (referred to as budget sub-categories) and time associated with completing tasks. For time, you can allocate the budget on an hourly basis, depending on the task requirements.

• Rest of the Process:

The remaining steps are identical to those in the Cost Budget Plan creation process, including setting thresholds, selecting periodicity, and finalizing the budget. 3. New Fixed Budget Plan  The process for creating a fixed budget plan is similar to that of a cost budget plan. Once the budget plan is created, you will not be able to modify it. Since it’s a fixed budget, the only actions you can perform are:

• Forecasting the budget.

• Deleting the budget plan if necessary.

Manage forecasting

• Access the Forecasting Page: Click on the Forecasting icon to be redirected to the Forecasting page.

• View the Following Information:

• Total Budget Amount: Displays the total budget amount allocated.

• Total Committed: Shows the total amount committed to costs. For time and material budgets, this is displayed directly as Total Consumed.

• Total Consumed: The total amount utilized from the allocated budget.

• Total Balance: The remaining balance, calculated by subtracting the Total Committed amount from the Total Budget Amount.

• Amount Utilized (%): Shows the percentage of the total budget that has been utilized.

Creating a Purchase Order to See Budget Plan Changes  Start by selecting the Cost Budget Plan to monitor the changes in the budget.

1. Steps to Create a Purchase Order:

• Follow this to create a purchase order.

• Add the project you previously created in the Project Workbench in the project field.

• In the Chart of Accounts, select the chart of account corresponding to the budget plan, which aligns with the project sub-category.

• When you create the purchase order, the amount will appear in the Committed section of the budget plan.

• To fully consume the purchase order, a bill needs to be created.

Steps to Create a Bill for the Purchase Order:

1. Go to Accounts Payable: Navigate to the Accounts Payable tab, and select Purchase Orders.
2. Select the Purchase Order: Choose the purchase order you want to bill for.
3. Create a New Bill: Click on the arrow icon in the right corner of the purchase order and select New Bill.

4. Enter Bill Details:

• Add a Bill Number in the designated field.

• • Attach any necessary supporting documents.

5. Review Projects:  Scroll down to review the list of projects. Verify the details, and if any information is missing or incorrect, you can correct it on this page.

6. Submit the Bill: Once submitted, the amount will move from the Committed section to the Consumed section of the budget plan.

Observing Changes in a Time and Material Budget Plan:

1. Material Budget:

• The process for allocating material is same as described for the Cost Budget Plan for its sub categories.

2. Time Allocation:

• Navigate to the My Timesheets tab.

• Select the employee, the project they worked on, the activity performed, and the hours worked.

• Note: Projects listed are based on the current user’s resource team. Ensure that the resource team for the project includes active users and they are of available dates.

• Save the timesheet entry. The time allocated by the employee will be recorded.

3. Budget Changes:

• Unlike the cost budget plan, there will be no Committed amount. The allocated time will directly reflect in the Consumed section of the budget plan.