How to Create Budget in Tally

Dear Friends, You know very well about the Tally software. At present time Tally is one only most popular accounting cum inventory software that handles the day-to-day all routine operations of any business unit very effectively. It is widely accepted by the different accounts for its user-friendly nature. Tally provides different accounting and inventory features that allow any user to maintain his company accounts effectively. Budget is an import part of Tally after reading this article your will be able to easily create budget in Tally software.

So, today we talk about another one of the most important topic Budget in Tally. Budgets – in- Tally helps a company to keep a track of how much money it has, where its money is going and allocate those funds at any point in time. A proper budgeting system enables a business to keep a track of its expenditures and use its funds effectively. Hence, business owners can compare revenues and expenses with ease, and more importantly, make better future investments.

Must Read: Distinction in Capital Expenditures and Revenue Expenditure

How to Create Budget in Tally

BUDGET APPLICABLE – 
Press F11 > Accounting Features (F1) > Maintain Budget and Controls > Yes

BUDGET CREATION – 
GOT > Accounting Info > Budget > Create
Name       – Give the name of budget.
Period      – Give the starting date to ending date of budget.
Set /Alter Budget of – In tally accounting software you can set budget for Groups, Ledger a/c or cost centers.

1.    Groups – If you want to set budget for group then turn on (yes) this option.
2.    Ledger – To set budget for any ledger a/c then select ledger a/c here.
3.    Cost Center – To set budget for cost centers.

TYPE OF BUDGET –

1. ON NET TRANSACTION  Normally this type of budget set for income & expenses a/c (expenses, purchase sales etc.). If you set net transaction budget then the budget variance show only to last entry date.

2. ON CLOSING BALANCE This type of budget set for debtor, bank a/c or fixed assets a/c. This type of budget show variance total set amount of the budget.

TO VIEW/PRINT BUDGET VARIANCE REPORT –

GOT > Display > Trial Balance > Select Group
(If you create the budget for group then press here ALT + B) –> Select ledger a/c & press ALT + B to see budget variance report in tally accounting software.

Must Read: What is Service Tax and Service Tax Forms

I hope you like this Budget in Tally post. Give your important suggestions in comment box regarding this post and share your knowledge with your friends, colleague, family members and others. Thanks.

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