Using the Budget Module for Forecasting
Presenter: Bonnie McLain, Solution Consultant
Description
In the current economic climate, many nonprofits require forecasting capabilities to make basic
financial decisions. This hands-on session will show you how to utilize Sage MIP Fund Accounting's
reporting and budgeting modules to create financial statement forecasts.
Learning Objectives
At the end of today’s session, you will be able to:
•
Understand forecast reporting options
•
Recognize the value of owning the Budget Module
•
Fully Utilize budget functionality in strategic forecast reporting
Information and background:
Sage MIP Fund Accounting Forecasting Options:
Sage MIP Fund Accounting provides several mechanisms to accomplishing forecasting:
Statement of Revenues and Expenditures by Period
Pros
Forecast amounts based on actual or budget
Can include forecast amounts by month, quarter, or year
Fast
Cons
The same multiplier is applied to all revenue and expense accounts
Actual amounts are based on prior year actual
Statement of Revenues and Expenditures with Custom Columns
Pros
Forecast amounts may be based on actual or budget versions
Can calculate forecast amounts based on formula or flat percentage
Can compare budget to total forecast amount
Cons
The same formula/multiplier is applied to all revenue and expense accounts
The formula/multiplier may need to be updated for each month
Setup is more challenging
Statement of Revenues and Expenditures with Budget Module and Custom Columns
Before we begin let’s review MIP’s Core General Ledger features and Budget Module features.
Core General Ledger Functionality:
Contains basic budgeting
Delivered with 2 budget versions
Ability to use budget in financial reports
Navigator does not display “Budget”
Budget transactions are entered via the Enter Budget Transaction form
No Display Budget Balances exist
No budget checking capability is available without owning the Budget Module
Basic budget delivered with two versions Original and Revised
“Revised” is set to Primary
You cannot create more budget versions
Budget Module Features:
Budget Module Features
Unlimited Budget Versions
Budget Checking
Budget Control
Forecasting
Budget Worksheets
Track full iterations of budget
Multiple Proposals
Collaborative
Provides comparative data
Flexible Budget period checking
Budget Checking
during data entry
Flexible Budget
Checking dates
Activity 1 – Create a new Budget Version
1. Open Administration
a. Login to Administration using
b. Username = MIP
c. Password = <blank>
2. Navigate to the Budget Module setup ( Organization>Setup Module>Budget>Budget
Versions )
3. Create a new budget version – Name it “Forecast”
a. Version ID = “Forecast”
b. Status = Active
c. Description = Forecast
d. Display Name = Forecast
e. Save and close
Activity 2 – Create New Budget Worksheet
1. Open Accounting Module
2. Login to Accounting
a. Username = MIP
b. Password = <Blank>
3. Select Budget from the Navigator
4. Click on the Icon “Budget Worksheet”
5. Create a new Budget Worksheet
a. Worksheet Name = “2009 Day Care Forecast”
b. Budget Version = Forecast
c. Click Next
Activity 2 (cont) – Create New Budget Worksheet
6. Select Budget Type and Worksheet Type
a. Budget Type = Budget Dollar
b. Worksheet Type = New Worksheet
c. Click Next
7. Budget Effective Date and Number of Cycles will equal the period to forecast
a. Budget Effective Date = 7/1/2009 – 12/31/2009
b. Budget Cycle = Monthly
c. Number of Cycles = 6
d. Click Next
8. Comparative Columns to assist in forecasting the period
a. Column Type = Actual 2008 (to show last year matching amount)
b. Column Type = Revised Budget 2009 (to show your original budget for the period )
c. Click Next
9. Select Budget Segments
a. Select Segments to Budget = Grant, GL, and Progr
b. Click Next
10. Choose Accounts to Budget (we will use Exp only)
a. Activity Basis = ACT
b. Click Next
11. Filter for applicable Programs or Departments
a. Filter for Progr = Day Care “401”
b. Click Next
12. Forecast remaining months amounts
a. Calculation Basis = Budget
b. Budget Version = Revised
TIP: To forecast off the current budget choose “Budget”
TIP: To base the forecast on actual amounts chose “Actual”
13. Select historical data for basis of forecast amounts
a. Select the begin date of the historical range = 7/1/2009
b. Click Next
14. Review the number of budget entries created.
15. Click Finish/Save
Activity 3: Edit Worksheet with Organization Forecasted Amounts
Your new “Forecast” worksheet is now available for use to edit or modify amounts to reflect your
best guess for estimated expenditures for the remaining fiscal months.
The worksheet includes comparative data and budget amounts to assist you in making your
estimated or forecasted numbers. Take into consider new economic data and trends for the
organization when entering your forecasted amounts.
1. For our exercise change the first line Housing-Day Care Salaries for July through December
to be $1,000/month by entering $6,000 in the “Spread Totals” field
1,000
2. Once the forecast is completed transfer the worksheet
a. Session ID = Forecast
b. Beginning Document = Forecast001
c. Click OK
TIP: Do Not Post the budget!!!
Not posting allows you to perform this process at scheduled points in the year for the remaining
months
It also prevents the budget ledger form getting cluttered and removes any necessity of reversing
entries
Activity 4: Forecast Reporting
1. Navigate to the Reporting Menu.
2. Report Manager > Financial Statements > Statement of Revenues and Expenditures
3. Create new report
4. Setup Tab
a. Report Name = “Forecast”
b. Account Balance Begins = 1/1/2009
c. Current Year Begins -= 1/1/2009
d. Opening Balances: 1/1/2009 – 12/31/2009
e. Select RevExp Format
5. Content Tab
a. Items by page = Progr
b. Report Body
i. GL Title
ii. Current Period Actual (1/1/2009-today)
iii. Total Budget Forecast (7/1/2009 – 12/31/2009)
6. Filter Tab
a. Progr = Day Care “401”
b. Unposted transaction source = BD
7. Options Tab
a. Statement Level = 2
b. Budget Period 7/1/2009 – 12/31/2009
c. Select Unposted Transactions
8. Save the report
9. Reselect the report so you enable the Custom Column feature
10. Select the Custom Column Creation Button
11. Create New Custom Column
a. Name the custom column “Forecast Year End”
b. Select type = formula
c. Create formula
[(Current Period Actual) + (Total Budget Forecast)]
d. Save the custom column
e. Close the custom column form
12. Content Tab
a. Add the new “Forecast Year End” column to the report body
13. Save and reselect the report
14. Print the report to screen
Close the report
Repeat process at strategic intervals during the year
Delete unposted budget transactions to remove unnecessary transactions in the ledgers
Or, modify the Total Budget From and Through dates on the report setup if no edits are necessary
to the remaining forecasted months.