Budget Management

7.1 Overview

The Budget Management module provides comprehensive budget planning, allocation, tracking, and reporting capabilities. The module is organized into five main tabs: Setup, New Allocations, Execution, Report, and Adjustments.

7.2 Budget Setup (One-Time Configuration)

Before creating budgets, configure these foundational elements. The Setup tab contains five sub-tabs.

7.2.1 Departments

Departments represent top-level organizational units for budget allocation.

Available Actions:

Creating a Department:

1. Go to Budget > Setup > Departments
2. Click "Add Department"
3. Enter:
   • Department name (required)
   • Description (optional)
   • Active status (toggle switch)
4. Click "Create" to save

Editing a Department:

1. Locate the department in the list
2. Click the Edit icon (pencil)
3. Modify the details in the dialog
4. Click "Update" to save changes

Deleting a Department:

1. Click the Delete icon (trash) on the department row
2. Confirm deletion in the alert dialog
3. Note: Deletion may affect related budget data

7.2.2 Cost Centers

Cost centers are sub-divisions within departments for granular budget tracking.

Available Actions:

Creating a Cost Center:

1. Navigate to Cost Centers tab
2. Click "Add Cost Center"
3. Enter:
   • Cost center name (required)
   • Department (required - select from dropdown)
   • Parent cost center (optional - for hierarchical structure)
   • Description (optional)
   • Active status
4. Click "Create" to save

Filtering Cost Centers:

1. Use the "Filter by department" dropdown
2. Select a specific department or "All Departments"
3. The list will update automatically

7.2.3 Expense Categories

Expense categories define the types of expenses that can be budgeted for.

Available Actions:

Expense Category Types:

Creating an Expense Category:

1. Go to Expense Categories tab
2. Click "Add Category"
3. Enter:
   • Category name (required)
   • Parent category (optional - for sub-categories, shown with └─ prefix)
   • Expense type (Operational/Capital/Administrative/Other)
   • Description (optional)
   • Active status
4. Click "Create" to save

7.2.4 Budget Periods

Budget periods define the timeframe for budget planning and execution.

Available Actions:

Period Types:

Creating a Budget Period:

1. Navigate to Budget Periods tab
2. Click "Add Budget Period"
3. Enter:
   • Period name (e.g., "FY 2025 Annual Budget")
   • Period type (Annual/Quarterly/Monthly/Custom)
   • Fiscal year
   • Quarter (if quarterly) or Month (if monthly)
   • Start date and End date
   • Description (optional)
   • Active status
4. Click "Create" to save

Business Rules for Deletion:

• Cannot delete an active budget period - deactivate it first
• Cannot delete a closed budget period - closed periods are permanent records

7.2.5 Budgets

Create and manage master budget records with approval workflow.

Available Actions:

Budget Workflow:

``` ┌─────────┐ Submit ┌──────────────────┐ Approve ┌──────────┐ Activate ┌────────┐ │ Draft │────────────►│ Pending Approval │──────────────►│ Approved │───────────────►│ Active │ └─────────┘ └──────────────────┘ └──────────┘ └────────┘ │ │ │ │ │ Reject │ │ ▼ │ │ ┌──────────┐ │ └───────────────────►│ Rejected │ │ (Edit & Resubmit) └──────────┘ │ ▼ ┌─────────┐ │ Closed │ └─────────┘ ```

Creating a Budget:

1. Go to Budgets tab
2. Click "Create Budget"
3. Enter:
   • Budget name (required)
   • Description (optional)
   • Budget period (required)
   • Total income budget
   • Total expense budget
   • Notes (optional)
4. Click "Create" to save as Draft

Approving a Budget:

1. Find a budget with "Pending Approval" status
2. Click the "Approve" button
3. Add optional approval comments
4. Click "Approve Budget" to confirm

Rejecting a Budget:

1. Find a budget with "Pending Approval" status
2. Click the "Reject" button
3. Enter rejection reason (required)
4. Add additional comments (optional)
5. Click "Reject Budget" to confirm

Activating a Budget:

1. Find an "Approved" budget
2. Click the "Activate" button
3. The budget becomes operational and available for allocations

---

7.3 Budget Allocations (New Allocations Tab)

Allocate funds from active budgets to departments, cost centers, or expense categories.

7.3.1 Available Actions

7.3.2 Creating Allocations

1. Navigate to Budget > New Allocations
2. Select an active budget from the dropdown
3. In the allocation form:
   • Choose Allocation Type: Department, Cost Center, or Expense Category
   • Select the specific entity from the dropdown
   • Enter Amount (TZS)
   • Add notes (optional)
4. Click "Create Allocation"

7.3.3 Editing Allocations

1. Locate the allocation in the Existing Allocations table
2. Click the Edit icon (pencil)
3. In the edit dialog:
   • Modify the Amount (TZS)
   • Update Notes
   • Toggle Active status
4. Click "Update Allocation" to save

7.3.4 Deleting Allocations

1. Click the Delete icon (trash) on the allocation row
2. Review the confirmation message
3. Click "Delete Allocation" to confirm
4. The allocated amount returns to the available budget

Business Rules:

• Allocations cannot exceed total budget amount
• Same entity cannot have duplicate allocations within a budget
• Allocations track: Allocated, Committed, Actual, and Available amounts

7.3.5 Allocation Summary

The summary card at the top shows:

---

7.4 Budget Execution

Track real-time budget utilization with budget items, commitments, and transactions.

7.4.1 Available Actions

7.4.2 Creating Budget Items

1. Click "Create Budget Item" button
2. Fill in the form:
   • Select Budget Allocation (required)
   • Enter Item Name (required)
   • Choose Item Type: Expense, Income, or Transfer
   • Enter Budgeted Amount (required)
   • Set Level (for hierarchical items)
   • Select Cost Center (optional)
   • Select Expense Category (optional)
   • Add Description and Notes (optional)
3. Click "Create Budget Item"

7.4.3 Recording Commitments

Commitments reserve budget before actual spending occurs.

1. Find the budget item in the table
2. Click the Add Commitment button (+)
3. Fill in the commitment form:
   • Select Commitment Type:
     • Purchase Request
     • Purchase Order
     • Contract
     • Reservation
     • Other
   • Enter Committed Amount (required)
   • Enter Reference Number (e.g., PO-2025-001)
   • Set Commitment Date
   • Set Expected Utilization Date
   • Set Expiry Date (optional)
   • Add Description and Notes
4. Click "Create Commitment"

Commitment Types:

7.4.4 Recording Transactions

Transactions record actual spending or income.

1. Find the budget item in the table
2. Click the Add Transaction button (+)
3. Fill in the transaction form:
   • Select Transaction Type:
     • Expense (deducts from budget)
     • Income (adds to budget)
     • Adjustment (correction)
     • Reversal (undo previous transaction)
   • Enter Amount (required)
   • Enter Reference Type (e.g., INVOICE, PAYMENT)
   • Enter Reference Number
   • Select Budget Commitment (optional - link to existing commitment)
   • Check "This transaction is committed" if applicable
   • Set Transaction Date (required)
   • Add Description and Notes
4. Click "Record Transaction"

7.4.5 Deleting Transactions

1. Click the Delete Transaction button (trash icon) on the budget item row
2. In the delete dialog, view all transactions for the item
3. Click the Delete button next to the transaction to remove
4. The actual amount will be recalculated automatically

7.4.6 Viewing Budget Item Details

1. Click the View button on a budget item row
2. The details dialog shows:
   • Budget item information (code, name, type, level, status)
   • Financial summary (budgeted, committed, actual, available)
   • Recent commitments list
   • Recent transactions list

7.4.7 Utilization Tracking

The budget items table shows utilization status:

---

7.5 Budget Report

View comprehensive budget analysis and performance metrics.

7.5.1 Summary Cards

• Total income vs expense budget
• Net budget
• Available budget
• Variance analysis

7.5.2 Year-to-Date Performance

• Income performance metrics
• Expense utilization rates
• Visual progress indicators

7.5.3 Department Breakdown

• Budget by department
• YTD actual spending
• Variance percentage

---

7.6 Budget Adjustments

Make changes to approved budgets through revisions and transfers.

7.6.1 Budget Revisions Tab

Available Actions:

Revision Types:

Creating a Revision:

1. Go to Budget > Adjustments > Revisions
2. Click "Create Revision"
3. Fill in the form:
   • Select Budget Period (filters available budgets)
   • Select Budget (required)
   • Select Budget Allocation (optional)
   • Select Budget Item (optional)
   • Choose Revision Type
   • Enter Original Amount
   • Enter Revised Amount (required)
   • Enter Reason (required)
   • Enter Justification (optional)
4. Click "Create Revision"

Revision Workflow:

``` ┌─────────┐ Submit ┌──────────────────┐ Approve ┌──────────┐ Implement ┌─────────────┐ │ Draft │────────────►│ Pending Approval │──────────────►│ Approved │────────────────►│ Implemented │ └─────────┘ └──────────────────┘ └──────────┘ └─────────────┘ │ │ │ │ Reject │ ▼ │ ┌──────────┐ └───────────────────►│ Rejected │ (Edit & Resubmit) └──────────┘ ```

7.6.2 Budget Transfers Tab

Move funds between allocations within the same budget.

Available Actions:

Creating a Transfer:

1. Navigate to Transfers tab
2. Click "Create Transfer"
3. Fill in the form:
   • Select Budget Period
   • Select Budget (required)
   • Source (From):
     • Select source allocation
     • Optionally specify department/cost center
   • Destination (To):
     • Select destination allocation
     • Optionally specify department/cost center
   • Enter Transfer Amount (required)
   • Set Transfer Date
   • Enter Reason (required)
   • Enter Justification (optional)
4. Click "Create Transfer"

Transfer Workflow:

``` ┌─────────┐ Submit ┌──────────────────┐ Approve ┌──────────┐ Complete ┌───────────┐ │ Draft │────────────►│ Pending Approval │──────────────►│ Approved │───────────────►│ Completed │ └─────────┘ └──────────────────┘ └──────────┘ └───────────┘ │ │ │ │ Reject │ ▼ │ ┌──────────┐ └───────────────────►│ Rejected │ (Edit & Resubmit) └──────────┘ ```

Business Rules:

• Source and destination must be different allocations
• Cannot transfer more than available amount
• Transfers require approval
• Completed transfers update both source and destination balances