Budget

Budget posts on purchase-, stock-, return- and production orders define the expected cost price of the lots that are created by the order.

Costs associated with sales orders are also called distribution costs. These costs do to contribute to the cost price of the lots included in the order, but are used to calculate the expected contribution margin on the sales order.

Budget posts make it possible to estimate your cost prices and contribution margin of an order on a preliminary basis before the actual expense documents from suppliers, shippers, custom clearance etc are received (and transferred to tracezilla in case you are working with Actual cost Pricing).

Automatic creation of budget posts

Budget posts are automatically added by the system to purchase prices of purchased lots and service lines.

It is also possible to have recipes automatically add budget posts to production orders based on the quantity produced. Read more about recipes here.

Overhead budget posts

A budget post can be marked as an overhead expense. If this is the case, the value of this post will be included in the calculation of both the expected and the actual expenses.

This is useful in cases where an invoice is not received for the work performed, which is often the case with costs that are a result of work that takes place within the company itself.

Typical examples of overhead budget posts:

• freight charges
• electricity
• wages

Add manual budget posts

It is possible to add a budget post manually, eg freight charges, wages, packaging etc.

In order to manually add a budget post do the following:

1. If you have entered the purchase price and, if necessary, service lines on the order, they will already appear in your budget.

2. Click Add Budget Post.

3. Enter a description of the budget post in the field Memo.

4. Choose a Category.

5. If you want the expense to be included in the actual cost pricing tick off the box This is Overhead. This can be relevant in cases were you would like to include an expense to which you do not have an invoice.

6. Choose whether the Calculation Method should be Fixed Price or Percentage.

7. Write the amount and check that the currency is correct.

8. You can add a tag in case this is relevant.

Your budget posts now appear in the calculations of your key figures which you will find in the field Key Metrics in the middle of the order screen when looking at the order. Read about Key Metrics.