Monthly Distribution
You can distribute annual budgets throughout the months of a fiscal year in ERPNext by using a Monthly Distribution. You can specify how much of the budget should be spent each month rather than distributing the entire amount all at once. This is beneficial for:
- Equal allocation: Distributed equally throughout the course of the year.
- Seasonal allocation: Set aside larger sums of money for marketing in December, for example, when demand is at its highest.
- Custom allocation: Modify each month according to anticipated expenditures.
The Budgeting function and Monthly Distribution collaborate closely to make sure that monthly spending caps are met.
1. Creating a Monthly Distribution
- Select Monthly Distribution under Accounts > Budgeting and Cost Centres.
- Select New.
- Complete the following:
- Monthly Distribution Name, such as Marketing FY25 Distribution.
- Business.
- Total Allocation (%) > must equal 100%.
- Enter each month’s percentage in the Distribution Table:
- For instance, January 5%, February 5%, March 10%, and so on, December 15%.
- Keep the Monthly Distribution handy.
2. Applying Monthly Distribution in Budgets
You can choose a Monthly Distribution when making a Budget:
- Select Accounts > Budgeting and Cost Centres > Budget.
- Select the distribution you made in the Monthly Distribution field.
- This allocation will be used to validate the budget month by month.
3. Validation and Reports
- Monthly Distribution guarantees that, rather than using Annual limits, transactions are compared to monthly limits.
- The applied monthly distribution is reflected in reports like the Profit and Loss Statement and the Budget Variance Report.
