Budget

Overview

Budget – Business Overview

The Budget document is used to plan, control, and monitor how much your organization intends to spend or earn over a specific period. It helps management set financial limits, align spending with business goals, and ensure that actual expenses and revenues stay within approved expectations.

In Dafater, the Budget acts as a financial guardrail, supporting disciplined decision-making and proactive cost control across departments, projects, or cost centers.

Purpose in Business Operations

The Budget is primarily used to: - Define planned expenses and revenues in advance
- Control spending by setting limits for departments or activities
- Compare actual financial performance against planned figures
- Support financial accountability and governance

By using Budget, businesses can avoid overspending, improve financial forecasting, and make informed management decisions.

Prerequisites and Setup Requirements

Before using the Budget, the following should be in place: - A defined chart of accounts reflecting how your business tracks income and expenses
- Clear organizational structure, such as departments, cost centers, or business units
- An agreed budgeting period (monthly, quarterly, or annual)
- Management-approved financial targets or spending limits

These elements ensure that budgets are realistic, structured, and aligned with business objectives.

Typical Workflow and Business Process Fit

Planning – Finance or management prepares the Budget based on forecasts, historical data, and strategic goals.
Review and Approval – The proposed Budget is reviewed by relevant stakeholders and approved by management.
Execution – Day-to-day business transactions occur within the limits defined by the Budget.
Monitoring – Actual spending and income are regularly compared against the Budget.
Control and Adjustment – Management takes corrective action if spending exceeds or risks exceeding the approved limits.

This workflow embeds financial discipline into everyday business operations.

Key Business Scenarios Where Budget Is Essential

Departmental expense control to prevent overspending
Annual financial planning and performance tracking
Project or initiative budgeting to manage costs effectively
Cash flow and profitability planning
Compliance and governance, especially in larger organizations

In all these cases, the Budget provides clarity and accountability.

Important Considerations for Users

Budgets should be realistic and based on reliable data
Regular review is essential to catch deviations early
A budget is a control tool, not a restriction—flexibility may be needed for strategic decisions
Clear ownership of each Budget improves accountability
Consistent monitoring ensures the Budget remains relevant throughout the period

In summary, the Budget is a foundational financial planning tool in Dafater that helps businesses control costs, align spending with strategy, and maintain financial health through structured planning and monitoring.

Basic Information

Module: Accounts
Document Type: Other

Fields

Field Name	Label	Type	Required	Options	Description
naming_series	Series	Select	✓	BUDGET-.YYYY.-	Defines Dafater budget document numbering pattern.
budget_against	Budget Against	Select	✓	, Cost Center, Project	Specifies whether budget applies to cost center or project.
company	Company	Link	✓	Company	Company for which this budget is defined in Dafater.
cost_center	Cost Center	Link		Cost Center	Cost center against which budget limits are enforced.
project	Project	Link		Project	Project against which budget limits are tracked.
fiscal_year	Fiscal Year	Link	✓	Fiscal Year	Fiscal year for which the budget is applicable.
monthly_distribution	Monthly Distribution	Link		Monthly Distribution	Monthly allocation pattern used for budget spreading.
amended_from	Amended From	Link		Budget	Original Dafater budget document being amended.
applicableonmaterial_request	Applicable on Material Request	Check		-	Enable budget validation during material request creation.
actionifannualbudgetexceededonmr	Action if Annual Budget Exceeded on MR	Select		, Stop, Warn, Ignore	Action when annual budget exceeds on material request.
actionifaccumulatedmonthlybudgetexceededon_mr	Action if Accumulated Monthly Budget Exceeded on MR	Select		, Stop, Warn, Ignore	Action when monthly budget exceeds on material request.
applicableonpurchase_order	Applicable on Purchase Order	Check		-	Enable budget validation during purchase order creation.
actionifannualbudgetexceededonpo	Action if Annual Budget Exceeded on PO	Select		, Stop, Warn, Ignore	Action when annual budget exceeds on purchase order.
actionifaccumulatedmonthlybudgetexceededon_po	Action if Accumulated Monthly Budget Exceeded on PO	Select		, Stop, Warn, Ignore	Action when monthly budget exceeds on purchase order.
applicableonbookingactualexpenses	Applicable on booking actual expenses	Check		-	Enable budget checks while booking actual expenses.
actionifannualbudgetexceeded	Action if Annual Budget Exceeded on Actual	Select		, Stop, Warn, Ignore	Action when annual budget exceeds on actual expenses.
actionifaccumulatedmonthlybudget_exceeded	Action if Accumulated Monthly Budget Exceeded on Actual	Select		, Stop, Warn, Ignore	Action when monthly budget exceeds on actual expenses.
accounts	Budget Accounts	Table	✓	Budget Account	List of accounts with allocated budget amounts.

Child Tables

Budget Accounts (Budget Account)

Field Name	Label	Type	Required	Options	Description
account	Account	Link	✓	Account	Ledger account assigned for budget tracking
budget_amount	Budget Amount	Currency	✓	Company:company:default_currency	Planned budget amount allocated to this account

Permissions

Role	Read	Write	Create	Delete	Submit	Cancel
Accounts Manager	✓	✓	✓	✓	✓	✓

DocType	Relationship	Module
Budget	Links to	Accounts
Company	Links to	Setup
Cost Center	Links to	Accounts
Fiscal Year	Links to	Accounts
Monthly Distribution	Links to	Accounts
Project	Links to	Projects