Locking a Budget by Area

  • Updated

The term "Budget" varies depending on the region. For our Asia-Pacific customers, it's often referred to "Budgeted Outgoings." European users will see it labelled as "Service Charge," while those in North America will find it listed as "Operating Expenses." The terminology used in the app adjusts based on your location. For additional clarity on regional vocabulary, please see our Glossary of Regional Terminology.

This article provides a guide on how to lock a Budget by Area, a crucial step in maintaining the accuracy of your budget reconciliation. Locking a budget is vital for sound financial control and planning for future budgeting periods. By the end of this article, you will be able to securely finalize your budget figures for a given period.

Understanding the Budget Lock Date

The Budget Lock Date is pivotal in determining which invoices are included in your current budget. Invoices dated before the lock date are counted in the current period, while those entered afterwards are allocated to the next budgeting cycle. Rolling over the budget permits including post-lock-date invoices with service dates within the locked period in the new budget.

Should you initiate a new budget, invoices from a previously locked period are excluded by default. However, to include invoices from a past period in a new budget, ensure the service date is within the new budget period. For more guidance on service dates and invoices, please see the article on Service Dates on Invoices.

Preparation Before Locking

Before proceeding with the lock, it's essential to ensure all expenses are correctly assigned:

  • Navigate to the Expense to Schedule tab.
  • Allocate each expense as necessary.

Note that you won't be able to lock the budget until all expenses have been allocated properly, as indicated by the Lock button remaining inactive.

allocate expense.gif

Locking the Budget

Once you're ready to lock the budget, the process is simple:

  1. Verify that the budget period has concluded and it's ready for the reconciliation process.
  2. Select the Lock button.
  3. In the prompt that appears, input the Lock Date to finalize the invoices included in the current budget.
  4. Read the provided warning message to understand the consequences of budget locking. Although this action can be undone, its purpose is to halt further expenses from affecting your actual costs for the current period. Ensure you do this before moving forward with reconciliation.
  5. Choose Save to confirm the action. You can now begin reconciling the budget for the defined period.

Following these steps ensures that your budget by area is locked accurately, enabling you to reconcile budget figures effectively while maintaining immaculate financial records.

Was this article helpful?