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?
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.
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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.
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)!
File used for previous images.