Reallocation

In Maconomy, you can budget on a general level, a detailed level, or a combination of these.

You can budget at a general level in order to budget at a detailed level at a later time, either because the budgeting responsibility is divided into central and decentralized levels in the organization or because you want to create a budget framework first.

Conversely, you can begin by budgeting at a high level of detail in order to do the general level later, for instance if the budget figures are taken from a decentralized to a central business unit.

Reallocation from for instance a general level to a detailed level is done by debiting (or crediting) the sum account with the amount (or quantity) with which the detailed accounts are credited (or debited).

You can also reallocate between companies in the same Maconomy system. If you do that, Maconomy creates entries on an intercompany account since budgeting and posting for another company is not permitted. Note that you cannot budget on a sum company.

Example

The Maconomy budget module is used in an enterprise with a parent company and subsidiaries, each of which is an independent legal unit. The parent company budgets a frame amount for salaries in one of the subsidiaries. The subsidiary itself distributes this frame amount on activities within the company.

Reallocation is performed in the budget journal. In order to preserve the audit trail, it is not possible to delete budget entries.