Version: Current

Understanding Budget Evaluation Methods (Current, Rolling, Total)

When you set up budgets in Zudello that span multiple time intervals (like Monthly or Quarterly), the Evaluate Budget As setting is crucial. It determines how Zudello compares transaction spending against the budgeted amounts for those intervals.

1. Current Evaluation:

Focus: Compares spending strictly within the specific interval (e.g., month, quarter) that the transaction date falls into.
Calculation: Remaining = Interval Budget Amount - Interval Allocated Amount
Behaviour: Ignores performance in previous intervals. Underspending in one month doesn't increase the budget for the next; overspending in one month doesn't reduce it (though the overall allocated amount still increases).
Use Case: Best for enforcing strict periodic spending limits where carry-over is undesirable.

2. Rolling Evaluation:

Focus: Compares spending against the cumulative budget amount from the start of the budget period up to the end of the transaction's interval.
Calculation: Remaining = Cumulative Budget Amount (Start to Current Interval) - Cumulative Allocated Amount (Start to Current Interval)
Behaviour: Effectively carries forward unused budget (or overspend) from previous intervals to the current one. Focuses on year-to-date (or period-to-date) performance.
Use Case: Ideal for annual budgets tracked monthly/quarterly where flexibility between periods is allowed.

3. Total Evaluation:

Focus: Compares spending against the total budget amount across all intervals for that specific budget line (e.g., the entire annual budget for that Department/Account).
Calculation: Remaining = Total Budget Line Amount - Total Allocated Amount (All Intervals)
Behaviour: Allows spending in one interval to effectively "borrow" from budget allocated to future intervals within the same budget line. Exceptions only trigger when the overall budget line total is exceeded.
Use Case: Suitable for project budgets or scenarios where the total allocated amount is the primary constraint, regardless of timing within the budget period.

Important Note: If a budget's interval is set to "Total" (i.e., it's a "Set Budget" with only one period), all three evaluation methods will yield the same result.

The chosen method directly impacts when "Over Budget" exceptions trigger and how remaining amounts are displayed in the Budget Card View.