The budget and expenditure management are two important factors when it comes to the way a company does business. Almost all organizations, no matter how big or little, will define a budget in order to plan for the upcoming fiscal year. With special menu options under the Accounting module, the Odoo platform allows the operation of budget planning. The Budget option, which can be accessed from the Accounting menu on the Accounting module dashboard, will show all the details of the Budgets that are currently being set. Here we will define the Budget Name, Start Date, End Date, Responsible Person, and Status. The users can filter the necessary Budget from the lengthy list using the Filtering and Group by options that are accessible.


You can choose the Create option to bring up the creation window, as shown in the following image, to create new budgets. Here, the Budget Name, the Responsible Person, and the Operation Period, which specifies the Start and End Dates, should all be stated at the outset. By choosing the Add an available line option, the Budget Lines for the specific Budget can also be defined. For the previously set budgets, you must indicate the budgetary position, analytical accounts, start date, end date, and planned amount. Additionally, while the relevant Budget is in effect, the Practical Amount, Theoretical Amount, and Achievement percentage will all be automatically described.

Additionally, the budgetary position that we provide in each budget outlines all the accounts involved in the budget management, and section 3.3.6 discusses the steps required in developing a budgetary position.

The amount we have budgeted for the specific item is the "Planned Amount," as described.

The maximum amount that is anticipated to be made or spent from the beginning of the period to the end of the budgetary period is known as the Theoretical amount. For instance, in the screenshot below, the Planned Amount for Budgetary Position shows revenue of $10,000, a period of 31 days from December 1 to December 31, and the maximum amount that may be spent or earned for each day is $10,000/31 = $322.58. Accordingly, they must make or spend $322.58 every day.We are currently on the 17th day of the budget, which is today, December 17, 2022. The Theoretical Amount for the day will be 17x322.58 = 5483.87.

The Practical Amount is the amount that has been earned and spent up to this point.

The achievement determines whether or not this budget was successful. It is determined by dividing the theoretical amount by the practical amount. Additionally, the business can choose whether to keep this budget or scrap it based on this success.


You can save the menu and confirm the budget once the various parts of the budget have been established. After the budget has been confirmed, you will have options to approve and cancel the budget, as seen in the screenshot below. These will be presented to approved executives and the management who will then assess the budget's components and decide whether to approve it or cancel it.


The platform will be operational and capable of supporting the financial components once the budget has been authorized. Let's move on to the following section, where the management aspects of the assets will be thoroughly discussed, now that we are clear on the budget management aspects.



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