Configuring Budget Dimensions and Evaluation Methods

Set up accurate and meaningful budgets by defining the dimensions they track and how spending is evaluated against them. This guide explains how to configure budget dimensions and evaluation methods in Zudello.

Best practices

• Choose dimensions that align with your organisation's reporting and cost control structure (e.g., Department, Project, GL Account).
• Order dimensions logically if using hierarchical budgets (most general first).
• Select the evaluation method (Rolling, Current, Total) that best reflects how you want to track spending against the budget period.
• Ensure budget data (amounts per dimension/period) is accurate and complete.

Understanding Budget Dimensions

Budget dimensions determine the level of detail at which a budget tracks spending. You define which Zudello dimensions (standard or custom) a specific budget will monitor.

• Example: A budget might track spending based on Department and GL Account. A transaction line must match both the Department and GL Account specified on a budget line to impact that specific budget line.
• Hierarchy: Dimensions can be hierarchical (though Zudello doesn't automatically enforce hierarchy rules during configuration, the order matters for how data is potentially rolled up in reports). List the broadest category first.
• Matching: A transaction line must match all configured dimensions on a budget line to be allocated to it.

Understanding Evaluation Methods

The evaluation method determines how Zudello calculates the "Budgeted Amount" and "Allocated Amount" when comparing a transaction against a budget with multiple time intervals (e.g., monthly, quarterly).

• Current: Compares the transaction against the budget amount allocated only for the specific interval the transaction falls into (based on its date). Previous period over/under spending is ignored for the comparison.
  • Use Case: Tracking strict monthly spending limits where carry-over isn't allowed.
• Rolling: Compares the transaction against the cumulative budget amount from the start of the budget period up to and including the interval the transaction falls into. It effectively carries forward any remaining balance (positive or negative) from previous periods.
  • Use Case: Tracking annual budgets on a monthly basis where underspending in one month can offset overspending in another.
• Total: Compares the transaction against the total budget amount across all intervals for the relevant budget line. This allows spending allocated to one period to effectively "borrow" from future periods within the same budget line.
  • Use Case: Project budgets where the total project cost is key, regardless of when exactly the spending occurs within the project timeline.

Note: If a budget's interval is set to "Total" (meaning it covers the entire period as one lump sum), all three evaluation methods (Current, Rolling, Total) will produce the same result.

Configuring Dimensions and Evaluation Method

These settings are configured when creating or editing a Budget record.

1. Navigate to Budgets: Go to the Budgets module > Budgets submodule.
2. Create or Edit Budget: Click Create Budget or open an existing budget and click Edit.
3. Configure Budget Dimensions:
   • In the Budget Dimensions section of the header:
   • Click the field and select the first dimension (e.g., Department) from the dropdown list of available dimensions.
   • Click again to add subsequent dimensions (e.g., GL Account).
   • Drag and drop dimensions to reorder them if needed (most general first).
   • 
     • Note: The exact UI element might vary slightly.
4. Configure Evaluation Method:
   • Locate the Evaluate Budget As setting (usually a toggle or radio button group).
   • Select Current, Rolling, or Total.
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     • Note: The exact UI element might vary slightly.
5. Complete Budget Details: Fill in the budget name, interval, period, and line item amounts based on the chosen dimensions.
6. Save Budget.

Impact on Transactions

The chosen dimensions dictate which transaction lines will match which budget lines. The evaluation method affects the calculations shown in the Budget Card View and determines whether a transaction triggers an "Over Budget" exception based on the comparison method selected.

Need help?

Contact your organisation administrator or Zudello support for assistance with configuring budget dimensions and choosing the appropriate evaluation method for your needs.