INV: Using Budgets

Overview

WinTeam keeps track of how many of each item you have in stock or on order, and can quickly tally Budgets versus Actuals, as it relates to a Job.

Using Budgets with Inventory will help you monitor expenses by displaying annual budget amounts, monthly budget amounts, accumulated yearly budget amounts, actual amounts spent year-to-date, and available balances. The available balance is based on the yearly budget to date minus the actual year-to-date expenditure.

The Budgets tab is available from Requests, Drop Shipments, and Usage /Resale. You must specify a Job Number in order to show Budgets from these screens. The Budgets tab is not available from the Purchase Order or Transfer screens.

The data used for Budgets is pulled from GL Budgets (only accounts selected as J/C are included in the budget information) and only Material Expense GL Account Numbers associated with Inventory Items display for the specified Job.

Actuals are pulled from Inventory Activity only for activity records using the specified Job Number. The system then reads the activity date to determine which records to include in the Actuals. The data is then grouped by the Item Category's Material Expense GL Number.

Budgets and Actuals display in three levels.

  • Level 1 displays Budgets and Actuals for each Material Expense GL Number associated with Inventory Items. If there are no Budgets for a Material Expense GL Number for the Job, but there are actual expenditures, the Actual YTD amount will reflect a negative available balance (displays in red text).
  • Level 2 displays Actuals for each Inventory Category if the Actual YTD is not a zero amount.
  • Level 3 displays Actuals for each Inventory Item if the Actual YTD is not a zero amount.

You may run the Activities By Job/Item # Report to display budget/actual/variance amounts.

Setup:

  1. Verify Material Expense GL Numbers in Inventory Categories.
  2. Verify GL Budgets exist for the selected Job.

To verify Material Expense GL Number in Inventory Categories:

  1. From the WinTeam Main Menu, click Inventory.
  2. From the Inventory Main Menu, click Item Master File.
  3. Double-click in the Inventory Category field.
  4. The Inventory Categories screen displays.
  5. Each Inventory Category has a GL Number associated with Material Expense. We will be using the Material Expense GL Number as the first level in our budgets.
  6. Since the Material Expense GL Number field is not applicable for Service or Specialty Income accounts, we need to change the Material Expense GL Number for these accounts to the same GL Number as the Inventory Items Category Material Expense GL Number. If we do not change these GL Numbers, each different Material Expense GL # will display in the Budgets tab with a $0.00 amount.

    Change the Material Expense GL Number for the Services and Income accounts.
  7. Once the Inventory Categories are set up, verify that GL Budgets are set up for the selected Job.

To verify that GL Budgets exist for the selected Job and include the Inventory Material Expense GL Number:

  1. From the WinTeam Main Menu, click Job Costing.
  2. From the Job Costing Main Menu, click Jobs.
  3. From the Job Master File, select the Job you wish to view GL Budgets for.
  4. Click the GL Budgets tab.
  5. Does the Material Expense GL Number display in the Budget?
  6. This example shows an annual budget amount of $2500 and a monthly budget amount of $208.00.

Viewing Budgets - Job Requests:

  1. From the Inventory Main Menu, click Job Requests.
  2. Enter a Job Number. You must specify a Job Number to view Budgets.
  3. Click the Budgets tab.
  4. Notice the As of Date defaults to the last day of the month, based on today's date. You may modify this date.
  5. Click Requery.
  6. The GL Distribution grid populates with the budgets for Level 1 (GL Number).

Notice the Yearly Budget amount is $2500.00, exactly what we have in GL Budgets for this Job.

The Monthly Budget reflects the Yearly Budget divided by 12 months. (2500.00 / 12 = $208.33)

The Budget YTD is the Monthly Budget multiplied by the number of months elapsed in the fiscal year based on our "As of" date. (208.33 X 4 = $833.32)

Actual YTD amount is calculated from Inventory activity records for this Job through the "As of" date. Inventory activity includes

    • Requests that are Approved
    • Usage records that are Approved or Shipped/Closed
    • Drop Shipments that are Approved, Ordered, or Received

Available Balance is the Budget YTD - Actual YTD ($832.00 - $30.00 = $830.00)

Note: If the Available Balance is a negative amount the font displays in red.

  1. Click the plus sign next to the GL# in the grid to display budgets for Level 2 (Item Category).

    Level 2 sums actual data pulled by Item Number, grouped by the Inventory Category, who expense to GL # 4050.

    Note: Level 2 is available if Actual YTD is not zero.
  2. Click the plus sign next to Level 2 to display budgets for Level 3 (Inventory Item).

    Level 3 sums actual data pulled by Item Number, grouped by the Inventory Category, who expense to GL # 4050.
  3. Click the Detail button to open the Inventory Items Activity History screen.

    Notice the Item Number populates under Item. The Date Range From date defaults to the first day of the fiscal year based on the fiscal year of the "As of" date specified on the Budgets tab. The Date Range To date is the "As of" date specified on the Budgets tab.
  4. Click Search to populate the Item Activity History grid.
  5. Click Close to return to the Budgets tab.

Viewing Budgets - Drop Shipments:

  1. From the Inventory Main Menu, click Drop Shipment.
  2. Click the Job tab. Enter a Job Number. You must specify a Job Number to view Budgets.
  3. Click the Budgets tab.
  4. Notice the As of Date defaults to the last day of the month, based on today's date. You may modify this date.
  5. Click Requery.
  6. The GL Distribution grid populates with the budgets for Level 1 (GL Number).
  7. Click the plus sign next to the GL# in the grid to display budgets for Level 2 (Item Category).
  8. Click the plus sign next to Level 2 to display budgets for Level 3 (Inventory Item).
  9. Click the Detail button to view the Inventory Items Activity History screen.
  10. Click Close to return to the Budgets tab.

Viewing Budgets - Usage:

  1. From the Inventory Main Menu, click Usage & Resale.
  2. The Sold / Usage screen defaults to the Job tab. Enter Job Number. You must specify a Job Number to view Budgets.
  3. Click the Budgets tab.
  4. Notice the As of Date defaults to the last day of the month, based on today's date. You may modify this date.
  5. Click Requery.
  6. The GL Distribution grid populates with the budgets for Level 1 (GL Number). Note: Only Usage record activity is included, Resale activity is not reflected in Inventory Budgets.
  7. Click the plus sign next to the GL# in the grid to display budgets for Level 2 (Item Category).
  8. Click the plus sign next to Level 2 to display budgets for Level 3 (Inventory Item).
  9. Click the Detail button to view the Inventory Items Activity History screen.
  10. Click Close to return to the Budgets tab.

Run the Activities By Job/Item # Report to display budget/actual/variance amounts.

If you want to include the Job's Inventory Budget on the Request Print Report, see Including Job's Budget Inventory information on the Request Print Report. Inventory Budgets can be included on Job Requests, Usage/Resale, and Drop Shipments.