Budget Keys

Budget Keys are one of the tools available in HansaWorld Enterprise to help you calculate budgets. Budget Keys allow you to apply a formula to a yearly budget total in order to divide it into monthly or quarterly figures.

For example, suppose that for a particular Account each month of the year is budgeted to have the same balance, except June, July and August, which are to have balances half the size of the other months. Enter a Budget Key value of 1 for each of the three summer months, and 2 for the other months. The sum will be 21, which then corresponds to the annual balance.

When the sum of the Budget Keys is 100, each month will have a certain percentage of the annual figure. You can use percentage values as Budget Keys, but you don't have to. And remember that in case you start entering percentage values that add up to 100, changing a value will also change the sum away from 100.

You should define your Budget Key records to co-ordinate with your budgeting methods. For example, if you start with an annual budget figure and break it down into quarterly totals, your Budget Keys should feature four lines, one for each quarter. If you work to monthly totals, each Budget Key should have twelve lines, and so on.

Please refer to the description of the Budget register to see how Budget Keys are used to help calculate budgets.

To enter Budget Keys, double-click 'Budget Keys' in the 'Settings' list. Then, open the 'Budget Key: New' window by clicking the [New] button. When the Budget Key record has been entered, save it using the [Save] button and close the window by clicking the close box. Then, close the browse window using the close box again.

This is a code that identifies the Budget Key, when used for budgeting. You can only use uppercase letters and numbers.

Give the Budget Key a descriptive name, to be shown in the 'Budget Keys: Browse' and 'Paste Special' windows. Ideally, the Comment should include a reference to the number of periods (i.e. the number of rows used in the grid, usually 12 for monthly periods or four for quarterly periods). This will help you when entering Budget records because these should have the same number of periods as the Budget Keys they use.

This figure will be updated automatically as you add the monthly or quarterly key values to the Value grid

In most cases, you will enter percentages in the Value grid, in which case the Sum should be 100 when the Budget Key is complete..

Enter the monthly or quarterly key values.

Usually, you will enter percentages here, although it is not necessary to do so. When you use the Budget Key in a Budget record, each of these key values will be applied in turn to the Budget's Base Value on a ratio basis to produce a monthly or quarterly Budget value. For example, if the Base Value in a Budget is 6000.00 and you apply the Budget Key illustrated above to this Budget, the first monthly Budget value will be calculated to be 6000 * 10/252, the second monthly Budget value will be calculated to be 6000 * 12/252, and so on.