Running multiple budget versions

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Blake Gavin Miller A 2
Bl
Running multiple budget versions

Hello Modano community 

 

Was pondering if it would be possible to simply insert a second Budget Income Statement and call this reforecast.  I have need to run 2 BvA analysis in Modano - one is the original and the second is the active reforecast.

Has anyone attempted and have tips? 

James Longden A+ 103

Hi Blake,

The main question here is what period range the second budget relates to? If you're looking at the same financial year as the first budget, then it's a pretty simple process, outlined below.

However, if the second budget relates to a different 12-month period, say FY1:q2q3q4+FY2:q1, then there's a lot more to things. You'd need some additional dedicated time series assumptions (time series incompatibility thereupon) a Budget_1 period title set, related content, and so on. The software will automate much of the management of this process (MANAGE PERIOD TITLE SETS / DUPLICATE) but it's fiddly development work.

Realistically, if you're looking to manage a budget out into the following financial year, then I would set my time series up to have a 24mth 'budget' period and work within this data structure for reporting of the various variances.

***

Where it's the same financial year, the process isn't much more complicated than inserting second budget modules and using the import assumptions tool to lock the latest figures.

We create a forecast for FY23 using prices and volumes:

These are then imported into Budget_1 at the start of the year as the definitve FY23 budget:

Assuming we had a great starting three months, we get our Budget_1 variances (from $100k historicals) per the following:

We would likely re-forecast for the remaining 9 months of FY23 (shown here with higher volumes):

We would duplicate our budget module, call this Budget_2 and import this latest set of figures:

As we go through time, we will then get variances against Budget_1 and Budget_2. In the above image, you can see that we also showing (re-forecast) variances between Budget_1 and Budget_2 [$M$26:$U$28].

Cheers. J.

 

 

Blake Gavin Miller A 2
Bl

Thanks James  - basically a same period as original budget type project.  So you answer helps clarify a lot there.  The danger being once you show people you can do it... they want the second option (Will cross that later)! 

James Longden A+ 103

File used for previous images.