Budget System P&L Changes
Instructions for Using Budget P&L
The new budget P&L was created to include the prior year’s budget or standard and the year to date spending by each P&L line. Included in the criteria for the new budget was to be able to consolidate the division and corporate P&L. The existing corporate income statement programming was used to include next year’s budget, the prior year’s budget and the current year to date spending. Using the existing income statement, the consolidation of P&Ls was already in place. Generating a P&L from the budget system requires several method changes for the user. Listed you will find the steps necessary to generate the new P&L in the budget system. These steps should be done in sequence for an accurate P&L to be generated.
PLUS System
Two new options have been added to the PLUS system to insure that all the labor dollars are accounted for and that the dollars are charged to the proper G/L account. The options should be run and any discrepancies that are found should be corrected before a P&L is run. If any labor changes are made to the PLUS job class file, these two options should be re-run to guarantee no discrepancies were created.
Recovery Job Class Discrepancy (option 33 PLMENU03) - This report will print a list of indirect job classes that recover off of direct job classes that are not authorized for a particular operation/machine type in option 13 on PLMENU02.
Job Class G/L Acct Discrepancy (option 34 PLMENU03) - This report will print a list of job classes that have an incorrect G/L account number in the Payroll Job Class file compared to the Direct/Indirect number in the PLUS job class file (Job Classification Maintenance, option 12 PLMENU02). For example, if the job class in PLUS is a type 3 job, (3=Indirect), the G/L account in the payroll file should be 52003 or 52010, 52003 for a productive department and 52010 for a service department. The correction can be made in the PLUS system by changing the Direct/Indirect number or by changing the G/L account in the corporate payroll file.
Budget System
Material Requirements Report (option 26) - The material requirements report must be run to insure that all the direct and indirect material in the budget is being charged to the correct G/L account. In the far right column of the report you will find the G/L account that the material is being charged too. Most discrepancies are found in the supply system and can be corrected by changing the default issue account for the Mount Vernon part number.
Budget ID Posting Acct Report (option 16) - The report should be run to show what G/L account each budget id’s sales revenue is being credited too. If the budget id is an id that has been used in the current sales mix and the G/L account is incorrect, contact the budget system sponsor for help with the problem. If the budget id is a new product and no account is shown, you can go to ‘Projected Sales Maintenance’ (option 2) in the budget system and do maintenance on the budget id. An override G/L account can to added by using F11 (More Data) and entering a G/L account in the Override G/L Account: field.
Profit & Loss Report Overrides (option 32) - Overrides will be entered by G/L account. To enter an override, press F6 to add a G/L account. Select the account you wish to add and press enter. After the account appears on the screen select the account and enter an override for the units, dollars or both if necessary. At the end of each update line is a field marked O/A, this field allows additional money and units to be added to an existing account (A) or the total amount may be overridden(O).
Generate G/L Interface (option 14) - Option 14 creates a file with all the data necessary to create the P&L. Anytime any changes that effect the P&L are made in the budget system the G/L interface must be re-run.
Implement G/L Interface (option 17) - This option prepares the budget data for upload to the corporate G/L system and uploads the budget data to corporate.
Profit & Loss Report (option 34) - Submits a job to corporate to produce a P&L for the desired fiscal periods. To generate an annual budget, the report should be submitted for periods 1 thru 12. To generate a quarterly budget, you should submit the report with the fiscal periods that make up each quarter. The budget can be run as a summary or a detailed P&L.
After the budget set has been locked, the system will not allow any overrides to be changed or a G/L interface to be generated. The numbers that are found in the G/L interface are also used in the standards columns in the corporate income statement in the next fiscal year.