documentation/content/applications/finance/accounting/reporting/budget.rst

=======
Budgets
=======

:ref:`Analytic budgets <accounting/budgets/analytic-budgets>` track specific activities and projects
using analytic accounts, helping businesses make informed decisions about specific departments,
projects, or other groups of transactions. In contrast, :ref:`financial budgets
<accounting/budgets/financial>` are tied to the general ledger accounts that appear on the profit
and loss and focus on the company's overall economic position.

.. _accounting/budgets/analytic-budgets:

Analytic budgets
================

Analytic budgets allow for allocating and tracking income and expenses in detail, breaking down
costs and revenues by specific projects, departments, or groups of transactions. Analytic budgets
can be applied across various departments or projects to measure profitability and performance. Odoo
manages analytic budgets using :doc:`analytic accounting <analytic_accounting>`.

To activate the option for creating analytic budgets, go to :menuselection:`Accounting -->
Configuration --> Settings`, and enable :guilabel:`Budget Management` in the :guilabel:`Analytics`
section.

.. important::
   Odoo structures budgets using :ref:`plans <accounting/analytic_accounting/analytic_plans>` and
   :ref:`accounts <accounting/analytic_accounting/analytic_accounts>`, which must be configured
   *before* creating a budget.

.. _accounting/budgets/analytic-budget-set:

Set an analytic budget
----------------------

To create a new budget, go to :menuselection:`Accounting --> Accounting --> Analytic Budgets` and
click :guilabel:`New`. Make sure the following fields are appropriately completed: :guilabel:`Budget
Name`, :guilabel:`Period`, and :guilabel:`Budget Type`.

Click :guilabel:`Add a line` in the :guilabel:`Budget Lines` tab to structure the budget with the
:ref:`analytic plans <accounting/analytic_accounting/analytic_plans>` and :ref:`accounts
<accounting/analytic_accounting/analytic_accounts>` previously created. While the :ref:`analytic
plans <accounting/analytic_accounting/analytic_plans>` correspond to the column names, select the
:ref:`analytic accounts <accounting/analytic_accounting/analytic_accounts>` to define the budget
lines and set the amounts for each in the :guilabel:`Budgeted` column. Once all the budget lines are
settled, click :guilabel:`Open`. If changes need to be made once the budget's status is
:guilabel:`Open`, there are two options:

- :guilabel:`Reset to Draft`: To overwrite the data, then reopen the budget.
- :guilabel:`Revise`: A new budget will be created. Once it is :guilabel:`Open`, a :guilabel:`Rev`
  reference is added to the :guilabel:`Budget Name`. The original budget is then
  :guilabel:`Revised`.

.. _accounting/budgets/analytic-budget-check:

Check an analytic budget
------------------------

Once the budget is :guilabel:`Open`, two additional columns are available: :guilabel:`Committed` and
:guilabel:`Achieved`. These columns' amounts are automatically calculated based on the related
:ref:`analytic distribution <accounting/analytic_accounting/analytic-distribution>` of journal
items. When the :ref:`analytic distribution <accounting/analytic_accounting/analytic-distribution>`
of a journal item within the budget's period is updated, the budget's columns for the analytic
account(s) selected in the distribution are automatically updated. The :guilabel:`Achieved` amount
reflects the current result according to the items of confirmed journal entries for the associated
:ref:`analytic account <accounting/analytic_accounting/analytic_accounts>`. In contrast, the
:guilabel:`Committed` amount displays the full value of the :guilabel:`Achieved` amount, plus any
confirmed sales or purchase orders that have not yet been invoiced or billed.

.. note::
   - When a line in a request for quotation or purchase order includes an analytic distribution, a
     :guilabel:`Budget` smart button appears, providing a link to the :ref:`budget report
     <accounting/budgets/analytic-budget-reporting>` for more details.
   - For :guilabel:`Open` budgets, if a request for quotation or a purchase order is created using
     the associated analytic distribution and exceeds the allocated budget amount, the corresponding
     purchase order line is highlighted in red.

To reveal the :guilabel:`Theoretical` amount or percentage, use the :icon:`oi-settings-adjust`
(:guilabel:`adjust settings`) icon in the :guilabel:`Budget Lines`' header. The
:guilabel:`Theoretical` amount represents the amount of money that could theoretically have been
spent or should have been received based on the current date relative to the start/end dates. Click
:guilabel:`Details` to open a filtered view of the :ref:`budget report
<accounting/budgets/analytic-budget-reporting>` related to that specific budget line.

.. image:: budget/budget.png
   :alt: open budget with committed, achieved, and theoretical amounts

.. note::
   Deleting a budget is only allowed in the :guilabel:`Draft` and :guilabel:`Cancelled` stages.

To view the budget lines of one or multiple budgets directly from the :guilabel:`Budgets` list view,
select the budget(s) and click :guilabel:`Budget Lines`.

.. _accounting/budgets/analytic-budget-generate:

Generate periodic budgets
-------------------------

To create periodic budgets (monthly, quarterly, and yearly) for the selected :guilabel:`Analytic
Plans`, click :guilabel:`Generate`. A new budget is created for each :guilabel:`Period` between the
start and end dates:

- If a single analytic plan is selected, each budget includes a line for each account in that
  analytic plan.
- If multiple analytic plans are selected, each budget includes a line for each account/analytic
  plan combination.

To generate periodic budgets, follow these steps:

#. In the :guilabel:`Budgets` list view, click :guilabel:`Generate`.
#. In the :guilabel:`Generate Budget` window, set the dates and select the :guilabel:`Period` and
   the :guilabel:`Analytic Plans`.

   .. image:: budget/generate-budgets.png
      :alt: all the options to generate periodical budgets

#. Click :guilabel:`Split` to create the periodic budgets.
#. Click :guilabel:`Budgets` in the top-left corner to return to the :guilabel:`Budgets` list view.
#. One by one, click on the different periodic budgets with the :guilabel:`Draft` status to open
   them and set the amounts in the :guilabel:`Budgeted` column for each analytic account linked to
   the chosen analytic plans.
#. Click :guilabel:`Open` for each periodic budget.

.. _accounting/budgets/analytic-budget-reporting:

Reporting
---------

To perform various reporting actions, go to :menuselection:`Accounting --> Reporting -->
Budget Report`, then:

- Track, analyze, and compare budget data.
- Filter and group data using the :icon:`fa-plus-square` (:guilabel:`plus-square`) or
  :icon:`fa-minus-square` :guilabel:`(minus-square)` icon.
- Drill down into the report to see more details on the actual amounts and transactions.
- Export the data for further analysis or reporting needs.

.. _accounting/budgets/financial:

Financial budgets
=================

Financial budgets are structured around specific income and expense accounts and transactions for
official financial reporting and compliance purposes.

.. note::
   Financial budgets are available on the :ref:`Profit and Loss
   <accounting/reporting/profit-and-loss>` report.

.. _accounting/budgets/financial-budget-set:

Set a financial budget
----------------------

To create a new financial budget, follow these steps:

#. Go to :menuselection:`Accounting --> Reporting --> Profit and Loss` to open the
   :ref:`Profit and Loss <accounting/reporting/profit-and-loss>` report.
#. Click the :icon:`fa-calendar` :guilabel:`(calendar)` button to use the date selector and choose a
   period.
#. Click the :icon:`fa-bar-chart` :guilabel:`Budget` button and name the budget. A new column
   labeled with the budget name will appear next to the :guilabel:`Balance` column.
#. Assign amounts to each account requiring analysis.
#. A new :guilabel:`%` column will appear to the right of the new budget column, indicating the
   current status.

Different financial budgets can be created using these steps for comparison purposes.

.. note::
   The date selector enables the division of periods and navigation between periods, automatically
   updating the amounts accordingly.