None

Denotes that you do not wish this budget line to be allocated.

Fixed

Denotes that you wish to assign specific allocation percentages for this budget line. Note that the allocation percentages must add up to 100%.

For example, you know that on the average, Rooms Laundry makes up about 60% of the total laundry expense and Food Laundry makes up about 40% of the total laundry expense.

To accomplish this you would create a fixed allocation that would look like the following:

Variable

Denotes that you wish Budgeting to determine how a budget line should be allocated. You tell Budgeting which lines are part of the allocation and Budgeting performs the percentage calculations. The allocations can vary period by period as the relationship between the Percent lines change.

For example, you determine that laundry should be allocated between Rooms Laundry and Food Laundry. You then determine that Rooms Laundry is part of Rooms Revenue which you set as the percent line for Rooms Laundry, and Food Laundry is part of Food Revenue which you set as the percent line for Food Laundry. Budgeting adds Rooms Revenue and Food Revenue to determine total revenue. Budgeting then determines what percentage Rooms Revenue is of the total, and what percentage Food Revenue is of the total. Those percentages are then applied to Rooms Laundry and Food Laundry following:



For example:

• Period 1:
  
  • Rooms Revenue = $15,000 and Food Revenue = $5,000.
  • Total Revenue = $20,000 (Rooms Revenue is 75% of the total, Food Revenue is 25% of the total)
  • In Period 1, Budgeting would allocate Laundry as follows: 75% to Rooms Laundry and 25% to Food Laundry
• Period 2:
  
  • Rooms Revenue = $10,000 and Food Revenue = $10,000
  • Total Revenue = $20,000 (Rooms Revenue is 50% of the total revenue, Food Revenue is 50% of the total revenue)
  • In Period 2, Budgeting would allocate Laundry as follows: 50% to Rooms Laundry and 50% to Food Laundry.