General presentation of the Finance module

General presentation of the Finance module

Introduction

The Finance module enables you to manage your annual Department budget.
You can set up your budget for a given Fiscal year by structuring it and defining budget lines.
On this basis, you can monitor your Purchase orders and allocate Consumption.

Your budget is managed over time using the Fiscal year concept.
You can create archives and statements to track changes in your budget over the course of the year.
Finally, you can use a simulation area to work through different budget scenarios.

Budget organization

Abraxio proposes a 3-level budget organization:
  1. Department budget
    1. composed of Sub-budgets
      1. composed of budget lines
In Abraxio, the term "budget" is often used as a diminutive but can refer to different concepts depending on the context: Department budget, Project budget or Sub-budget.

Department budget

The "Department budget", as its name suggests, represents the budget of the Department to be managed. It represents the highest level.
Its Name should represent the scope managed. For example, "DSI", "DOSI", "IT", " IT Service". Choose a short name to optimise display.

This Department budget is then implemented over a succession of annual Fiscal years.
For example, you will get : 
  1. ITD Budget 2022 for the Fiscal year 01/01/2022 to 31/12/2022
  2. ITD Budget 2023 for the Fiscal year 01/01/2023 to 31/12/2023
This concept of financial year generally follows the concept of your company's financial year, which is based on the annual accounts closing date.

The Department budget has a status representing its life cycle:
  1. In preparation
  2. Active
  3. Closing
  4. Closed
Depending on the status, the budget and/or Consumption can be modified or read only.
As budgets are defined on a logical succession of Fiscal years, it is important to initialise Abraxio from the 1st Fiscal year you wish to manage (the oldest).

Sub-budgets

Sub-budgets are used to structure the budget for easier access and readability.
There are 2 types of sub-budget :
  1. Activity, for describing operating or investment activities other than Projects. For example: "Infrastructure and workstation services", "TMA web applications", etc.
  2. Project, for integrating project budgets defined and shared with the Portfolios module. For example: "1st step extranet overhaul" project.
Each sub-budget has a type: 
  1. RUN (Operating): recurring IT Department services (maintenance, renewal, provision of IT services, etc.)
  2. BUILD (Evolution): information systems évolution
  3. ENABLE  : Governance, management, quality, administrative...
This type does not define CAPEX. The CAPEX concept is defined at budget line level. 
Advice on use:
  1. A Project budget must be a Build budget.
  2. By default, an Activity budget will be of the Recurring type.
  3. Sometimes, an Activity budget may be of the enable type, to group together budget lines for governance, management, town planning, etc.
  4. Exceptionally, an Activity budget may be of Build type if you wish to describe changes in the information system that are not referenced in the Projects module. For example, investments that do not require or that you do not wish to manage in Project mode: replacement of infrastructure equipment.
Permissions are defined at the level of these Sub-budgets.
To simply delegate the management of sub-budgets for activities, it is useful to align the sub-budgets with the services of the Department. In this way, a Manager will have a clear scope of responsibility. 
Sub-budgets are structuring elements. You can define a simple initial organisation and then adjust, rename, break down or delete sub-budgets.

Budget lines

A budget line represents a budget item to be managed. For example: an Abraxio SaaS subscription, the purchase of servers, an external Project Manager service, etc.

In its Definition, it includes a Quotation and qualification elements (supplier, Resource, analytical dimensions, etc.).
In its life cycle, it will be associated with purchase orders and will be recorded against invoices and time spent.

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