Budget Amount Definition

Budget amounts can be entered for income statement and balance sheet accounts.  Budgets can be entered for both financial and statistical accounts.  The budget amount for a fiscal period on an income statement account should contain the planned period total for the account.  The quarterly budget values contain the accumulated budget amounts for all periods in the quarter.  The total year budget value for income statement accounts is the accumulation of the individual period budget amounts for the whole year. 

The budget amount for a balance sheet account contains the planned account balance as of the end of the period.  The quarterly budget values contain the average balance for the account over the fiscal periods in the quarter.  The total year budget value represents the average account balance over the fiscal year. 

Budget amounts should be entered with an appropriate sign based on the type of account being processed.  For example, budget amounts for sales accounts (which normally have credit balances) should be entered as negative values.  Budget amounts for expense accounts (which normally have debit balances) should be entered as positive values.