Budgeting is a financial plan that helps controlling Company expenses.

In ERPNext, you can set and manage budgets against a Cost Center or a Project. This is useful in controlling your expenses. With version 12, you can also create separate Accounting Dimensions to tag transactions with different fields.

For example, if you are doing online sales, you can set a budget for search advertisements and configure ERPNext to stop or warn you from overspending beyond a set budget.

Budgets are also great for planning purposes. When you are making plans for the next Financial Year, you would typically target a revenue based on which you would set your expenses. Setting a budget will ensure that your expenses do not get out of hand at any point.

To access the Budget list, go to:

Home > Accounting > Cost Center and Budgeting > Budget

1. How to Create a new Budget

  1. Go to the Budget list and click on New.
  2. Select what to budget against, Cost Center, Project, or an Accounting Dimensions.
  3. In the accounts table, select an income/expense account for which a budget is to be set. Let's set a budget for telephone expenses for the year. Budget
  4. Enter the budget amount for that account.
  5. Save and Submit.