Budgets

Budgets provide a way to plan for costs, make forecasts, and evaluate actual expenses versus planned expenses. Budgets take into consideration a wide range of items in your infrastructure, including assets, labor, and the configuration items in the CMDB.

How to use budgets

To use the Budgets feature, do the following:
  1. Identify budget owners, who have visibility to the financial data associated with the budgets.
  2. Set up a budget definition, which specifies the segment hierarchy that account codes use.
  3. Set up your currency conversion rates if you have budget items in more than one currency.
  4. Manually or automatically generate account codes, which tie all budgeting items together. Account codes are especially important for the budget forecast.
  5. Set up budget plans, which specify estimated expense summaries for items like assets, contracts, labor, and a target expense amount. Make a plan for a specific fiscal period and associate an account code with the plan.
  6. When your budget plan is complete, promote it to a budget forecast. Budget forecasts provide an estimate of estimated expenses versus target amounts for each unique fiscal period + account code combination.
  7. Populate the Budget [itfm_budget] table with your finalized budget amounts based on your forecast.
  8. View the Budget Variance report to see how expenses compare to budgets for cost centers, departments, and accounts.

You can create and manage budgets through standard lists and forms. You can also use the Budget Overview interface to view details about multiple budget plans and perform basic actions, such as copying and deleting plans.