Establish budgeting options

 

Updated: November 1, 2016

Applies To: Dynamics Marketing

System_CAPS_importantImportant

Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the customer FAQ. You can also read the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Use the Budget Settings page to set up the budgeting features of Microsoft Dynamics Marketing. Note that additional financial settings are also provided on the Site Settings page (see Configure site settings).

To view and edit the budget settings, go to Settings > Business Administration > Budgeting. This brings you to the Budget Settings page, which provides the following settings:.

  • Budget organization contact details: Enter contact details as needed in the various fields at the top-left area of the page.

  • AR and AP contact details: enter contact details as needed for the AR Contact (accounts receivable) and AP Contact (accounts payable) as needed.

  • Default accounts: in this area, specify the various accounts of each type to use as defaults throughout the site wherever each account type is requested. These are all related-record fields that provide a pop-up with available values. The accounts must be listed in the chart of accounts; if it is not already listed there, then use the New Account New button button in the toolbar to create a new account and add it to the chart, thus making it available for the various fields here. More information: Chart of accounts.

  • Work in Process: Mark this checkbox to track works in process (WIP); clear the box to disable this feature. When this is enabled, you must also specify a Work in Process Asset account and a Deferred Revenue Liability account in the fields provided.

    System_CAPS_noteNote

    If you disable WIP tracking, be sure to adjust the balance of the WIP asset account and the deferred revenue account.

Work in Process (WIP) is a method of accounting used to help organizations comply with Generally Accepted Accounting Principles (GAAP) guidelines. GAAP requires that related revenue and expenses be reported during the same and appropriate accounting period. Jobs often take more than one accounting period to complete. As a result an organization may incur costs in periods prior to the period when work is invoiced.

  • When a billable expense or time slip is entered into the system, two transactions are posted to the General Ledger:

    • The WIP (Asset) account is credited (increased) by the value of the time slip (amount of time x rate in the appropriate currency) or the amount of the expense.

    • The Deferred Revenue liability account is debited (decreased) by the same amount.

  • When a non-billable time slip is entered into the system, nothing is posted to the General Ledger.

  • When a time slip or billable expense is invoiced:

    • The WIP Asset Account is debited (decreased) by the value of the time slip (amount of time x rate in the appropriate currency) or the amount of the expense.

    • The Deferred Revenue liability account is credited (increased) by the same amount.

    • The invoice is posted as usual to Accounts Receivable and the appropriate revenue account.

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