Creating Budget Lines

Owned by Julie Leake (Unlicensed)
Last updated: Mar 23, 2020 by Frank Gambino
5 min read

As noted in Budget Lines, there are several different types of budget lines. To create your profit and loss tree, you must create budget lines. Remember that you must first Lock the structure before you can add any budget lines.

Common fields found when creating a budget line

FieldDescription

Name                                        

Denotes the name of the budget line.

Code

Denotes an alternate short name for the budget line. Many reports need to be coded to one of the following:

  • AVAILRMS—Available Rooms KBI
  • TTLRMS—Total Occupied Rooms KBI
  • POR—Rooms Revenue from occupied rooms
  • TTL—Revenue: Total Revenue
  • GOP—Gross Operating Profit
  • NOP—Net Operating Profit
  • GOI—Gross Operating Income
  • NOI—Net Operating Income
  • TTLRMS—Total Rooms (mirrors the Total Occupied Rooms KBI)

Account Code

Assign an account code to the budget line.

Allocation Type

Specify how the budget line is allocated.

  • None—Denotes that you do not wish this budget line to be allocated.
  • Fixed—Assigns specific allocation percentages for this budget line.
  • Variable—Budgeting determines how a budget line should be allocated. 

Note: This allocation can vary period by period as the relationship between the Percent lines change.

Factor Mode

Determines which elements of the formula have the factor applied. Factors allow you to adjust for circumstances.

There are three formulas that can be selected:

  • Variable—Total Dollars = Units × Rate × Factor + Fixed.
  • Fixed—Total Dollars = Units × Rate + Fixed × Factor.
  • Both—Total Dollars = Units × Rate × Factor + Fixed × Factor.

Show % of Line based on

Determine which line is to be used when displaying the relationship with the budget line you are editing.

Show % of Parent

Tell 

RMS

that you want to display the relationship between the budget line you are editing and its parent.

Budget Line Type

Designate what type of budget line you are creating.

Parent Line Operation

Select which operation you want to be applied to the Parent Line for this budget line.

Creating Budget Lines

To create new budget lines:

  1. Determine whether the budget structure is locked or unlocked, and click the Lock/Unlock Budget Structure icon if it is unlocked.
  2. Right-click on the total (T) budget line you want to add a new budget line.
  3. Select New Budget Line from the menu.
    The New Budget Line dialog box appears.
  4. Enter a Name and Code for the budget line.
  5. Enter an existing Account Code or click on the ellipses box and choose an account from the list.  
  6. Select an Allocation Type from the drop-down list, if appropriate.
  7. Select a Factor Mode (Variable, Fixed or Both).
  8. Click on the ellipses box and select a budget line that is to be used as the Show % of Line based on.
  9. Select or de-select Show % of Parent.

  10. Select the appropriate Budget Line Type for the new budget line you are creating.

    Note: The Divider budget line type is only visible if you are creating a top-level budget line.

  11. Click Next.
  12. Determine whether the new line should be added or subtracted from its parent, and select either Add or Subtract as the Parent Line Operation.
  13. Click Finish.
    The budget line is created and the dialog box closes.


You can create the following budget line types:

Creating Total Lines

  1. Determine whether the new line should be added or subtracted from it's parent and select Add or Subtract for the Parent Line Operation.
  2. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  3. (Optional) If you need to add other budget lines, return to Creating Budget Lines.
  4. Click the Save icon if you are finished adding budget lines.

Creating Calculated Lines

  1. Click Add Existing Line.
  2. Select the budget line to be used in the calculation.

  3. Determine whether the budget line is to be added, subtracted, multiplied or divided, and select the appropriate Operation to be performed.

    Note: This process works like an adding machine: the first operation type must be "add," from there, other lines are added, subtracted, multiplied or divided.

  4. Click OK.
  5. (Optional) Repeat Steps 1-4 for each budget line that needs to be included in the calculation.
  6. (Optional) If you need to remove a line from the calculation, click Remove Line.
  7. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  8. (Optional) If you need to add other budget lines, return to Creating Budget Lines.
  9. Click the Save icon if you are finished adding budget lines.

Creating Job Class Lines

  1. Select the Division, Department and Job to be used for the hours forecast.
  2. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  3. (Optional) If you need to add other budget lines, return to Creating Budget Lines.
  4. Click the Save icon if you are finished adding budget lines.

Creating KBI Lines

  1. Select the KBI to be used for the forecast.
  2. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  3. (Optional) If you need to add other budget lines, return to Creating Budget Lines.
  4. Click the Save icon if you are finished adding budget lines.

Creating Market Segment Lines

  1. Select a Market Group to be used for the rooms forecast.

  2. Select a Market Segment to be used for the rooms forecast.

    Note: If you select All, Budgeting will create a revenue center period for every period in the revenue center.

  3. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  4. (Optional) If you need to add other budget lines, return to Creating Budget Lines.

  5. Click the Save icon if you are finished adding budget lines.

Creating Revenue Center Lines

  1. Select the Revenue Center to be used for the rooms forecast.

  2. Select the Revenue Center Period to be used for the rooms forecast.

    Note: If you select All, Budgeting will create a revenue center period for every period in the revenue center.

  3. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  4. (Optional) If you need to add other budget lines, return to Creating Budget Lines.
  5. Click the Save icon if you are finished adding budget lines.

Creating Percent of Base Lines

  1. Select the line to be used for the Basis (the line on which the calculation will be based). NOTE: You cannot choose the line you are creating, or any lines dependent on this line, as the Basis.
  2. Do one of the following:
    • If you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations.
      Or
    • If you decided not to allocate, click Finish.
  3. (Optional) If you need to add other budget lines, return to Creating Budget Lines.
  4. Click the Save icon if you are finished adding budget lines.

Creating Fixed Lines

Fixed lines do not require any further information than that requested on the first screen, in order to be created. However, if you decided to allocate in Step 6 of Creating Budget Lines, click Next and proceed to About Configuring Allocations. If you decided not to allocate, click Finish.

If you need to add other budget lines, return to Creating Budget Lines. Otherwise, click the Save icon if you are finished adding budget lines.