Multi-budgets and scenarios of Tally ERP 9

Tally.ERP 9

Budgets are a measure of the results expected for the planned activities for a company. Whether you formally plan budgets or not, you will be working against several budgets  Revenue, Production, Expense, Financial, Investment and so on.

Once these budgets are recorded, you would periodically want to check up how your business measures up against this plan. And once you get a handle on the variance, you would probably take decisions on course corrections – record possible outcomes of these changes (as scenarios) and compare against the budgets once again.

This is a powerful planning mechanism that provides the flexibility to work in a changing/dynamic environment.

With Tally.ERP 9, you can set up any number of budgets – and to make this easy, budgets can roll up into ‘group’ budgets and these can roll up again into ‘master’ budgets: the people who come up with the budgets can make entries and the roll-up is automatic (and can be overridden at the rolled up level as well).

While viewing any report, you can choose to pull up the budgeted figures as well, along with a variance column. You could just as easily pull up budget figures alone  and make these available to various people.

A ‘scenario’ is the name given to a specific combination of vouchers that will be included to deliver a report – you can include and exclude different voucher types and build as many scenarios as needed  say one where a product launch is on time and another where it is delayed by three months. You could then view actual figures against a scenario. You could also see the variance between a scenario and the budget!

Budgets and Scenarios are powerful tools when used by themselves; used together they deliver unprecedented power to help plan & monitor your business.

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