Compare budget, actuals and cash-flow forecasts¶

Use MIS budgets for planned targets and a cash-flow report for expected receipts and payments.

Before you start¶

Have an approved MIS template, budget period and responsible owner. Distinguish an accounting-period budget from a due-date cash forecast.

Step by step¶

1. Enter the budget¶

Choose a MIS budget by KPI or by general-ledger accounts. For KPI budgets, the template indicators must be budgetable with the appropriate sum or average accumulation method. Enter or import amounts by period; for account budgets, review account and analytic allocation. The two methods are not combined in one budget.

2. Compare with actual entries¶

Add a column to the MIS report using the budget as its data source and another for actual entries. Add a comparison column and check dates and sign conventions. For partially overlapping periods, inspect how amounts are prorated before interpreting a variance.

3. Prepare the cash forecast¶

Open the Cash Flow MIS report. Add justified expected receipts or payments in Cash Flow Forecast Lines. Accounting amounts use due dates; manual forecast lines add anticipated movements. All Posted Entries excludes draft accounting entries, while All Entries includes them; cancelled entries are excluded.

4. Reconcile forecasts with real documents¶

When a forecast becomes an invoice or payment, review the manual line to avoid counting it twice. Compare due-date buckets with open installments and the bank balance. Record the forecast date and assumptions with the exported report.

Expected result¶

A budget comparison and cash forecast whose differences can be explained by dates, entries and assumptions.

If something goes wrong¶

Unexpected cash does not necessarily mean incorrect profit: competence dates and payment due dates differ. Check duplicate forecast lines, draft-entry inclusion, signs and overdue items before changing the budget.