Operating budgets
Demo School budgets KES 600,000 for teaching materials across the year. An even monthly distribution gives a KES 50,000 monthly plan. The budget describes an approved spending limit; it does not itself create an expense or move cash.
On this page
Prepare the budgetUnderstand the policyCompare budget and actualA purchase is blockedContinue withPrepare the budget
- Open Accounting > Budgets > Budgets and select the create action.
- Choose the expense account and cost centre. Enter the annual amount.
- Choose Monthly, Quarterly, Half-yearly or Yearly distribution to match how the plan should be reviewed.
- Select the overrun policy: warn before proceeding, block controlled transactions, or track without intervention.
- Save a draft for review, or Create and activate when the plan is approved.
Understand the policy
The selected policy applies to the controlled actual-spend, purchase-request and purchase-order checks. A warning calls for review; a blocking policy prevents the controlled transaction from continuing when its conditions fail.
Choose the account and cost centre carefully. Spending posted to another segment will not become part of this budget simply because its description sounds similar.
Compare budget and actual
- Open Budget versus actual.
- Use the same reporting period and segment as the plan. Review both the amount spent and the remaining allowance.
- Trace an unexpected actual amount to its posted source before changing the budget. Use the available governed revision process for an approved plan change.
A purchase is blocked
- Check which budget, account, cost centre and time period caused the block.
- Review existing commitments and posted spending.
- Request an approved revision or correct a wrongly classified draft. Do not switch the expense account merely to escape the control.