What Budgets Can Help You With

Capital Budget

Create with monthly depreciation spread and depreciation posted to the appropriate account. An ‘approved’ check mark defines what is actually in the budget vs. wish list items.

Salary Budget

Generate by employee, position or account. If employee is used, it will roll up into position then into account. Get specific on certain salary items like regular, sick, vacation, etc. at the employee level while budgeting for shift diff, call, etc. at the position level.

 

Accounts Budget

Budget non-salary accounts by detail item. Example: A maintenance contract account can be detailed by contract or a supply account can be detailed by item. Each detailed item can be spread monthly using a different table and be defined as fixed, variable or a combination.

Flexible Budgeting

The Flexible Budgeting module is integrated with the Cost Accounting application. Account standards are set during the cost accounting phase of implementation. Using the current budget, Flexible Budgeting features will ‘flex’ the budget based on actual charge item volumes, allowing administrators and department directors to monitor actual performance.

Affinity ERP Flexible Budgeting will increase or decrease the budget amount for each account based on actual charge item volumes and the variability of each account. The resulting flexed budget will be compared to actual expenses producing the following variances*:

  • Total Variance: Did we achieve budget objectives for the actual level of activity?
  • Efficiency Variance: Did the department utilize more or less staff than was expected for this level of activity?
  • Rate Variance: Was the actual rate of pay for each labor account higher or lower than anticipated?

*Variances for non-labor accounts do not include the efficiency and rate variances.