Budgeting is simply the process whereby projections of revenue or expenditure
can be made in subsidiary ledger accounts.
For example, amounts can be budgeted for faculty salaries, telephone bills,
equipment purchases, travel, etc. A revenue budget could be established
for tuition, sales, conference fees, etc.
Budgeting in the General Ledger
Budgeting is not available in the general ledger. However, when
a revenue or expenditure budget is entered into a subsidiary
ledger account, a corresponding entry is automatically entered
into the associated general ledger account in the 91X0
summary account control range. As revenue
is received, or as expenditures are made in the subsidiary ledger account,
a similar entry is made in summary account controls 93L0
or 95L0, allowing for a
quick comparison between budget and actual. Since it is possible to budget
more or less than is available in the general ledger fund
balance, an indication of unappropriated or unbudgeted "cash" can
be made by comparing the fund balance account control with the 91X0 summary
Budgeting in the Subsidiary Ledgers
Budgeting is available in the subsidiary ledgers.
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