BG506 – Budget Reporting Options in Dynamics 365 Finance: Use Cases and Examples
Introduction
Dynamics 365 Finance provides various reporting tools tailored for different stages of the budgeting process. These reports help organizations track performance, analyze data, and ensure financial accountability. Below is a comprehensive breakdown of reporting options for Basic Budgeting, Budget Planning, and Budget Control, explained with examples.
Basic Budgeting Reports
| Category | Report Name | Purpose | Use Case | Example |
|---|---|---|---|---|
| Basic Budgeting | Actual vs. Budget | Compare the actual spending against the budgeted amounts to identify variances. | The Finance team reviews this report to understand why the Marketing department exceeded its approved £1.6M budget by £50,000. | Shows that actual spending for Marketing was £1.65M against the budget of £1.6M. |
| Actual vs. Budget by Period | Compare actual vs. budgeted spending over specific time periods (monthly, quarterly, etc.). | The CFO wants to know how much IT spent each month compared to its £1M annual budget to identify high-spending months. | Displays IT spending at £100,000 for January but only £50,000 for February, highlighting seasonal variance. | |
| Budget Register Entries by Dimension Set | Analyze budget register entries by department, cost center, or other financial dimensions. | The Finance team reviews this report to ensure that all budget register entries for Product Development are correctly allocated across its projects. | Displays £2.4M allocated to Product Development, split into £1.5M for new product launches and £0.9M for product improvements. | |
| Budget Account Entries | View individual budget entries posted to specific general ledger accounts. | An auditor reviews this report to confirm all budget adjustments for Marketing were posted correctly. | Lists all entries, including a £50,000 adjustment for a new promotional campaign. | |
| Financial Reports | Generate high-level financial summaries for budget tracking and performance analysis. | The Finance team prepares a financial summary for the executive meeting to showcase overall budget performance. | Highlights total budget of £5M, with actual spending at £4.8M and a remaining balance of £200,000. |
Budget Planning Reports
| Category | Report Name | Purpose | Use Case | Example |
|---|---|---|---|---|
| Budget Planning | Budget Plans by Dimension Set | Track budget plans by department, project, or other financial dimensions. | The CFO reviews this report to understand how much budget is planned for Marketing, IT, and Product Development before approvals. | Shows £1.5M planned for Marketing, £1M for IT, and £2.5M for Product Development. |
| Budget Plan Lines | View detailed lines of budget plans, including all adjustments and revisions. | The Finance team reviews this report to see why Marketing requested an additional £200,000 during the planning process. | Shows the initial £1.5M request, with an additional £200,000 added for a new promotional campaign. | |
| Financial Reports | Summarize financial performance during the planning phase. | The CFO uses this report to see overall budget allocation by category, such as salaries, marketing, and R&D. | Highlights that 50% of the total £5M budget is allocated for salaries, 20% for marketing, and 30% for R&D. | |
| Forecast Positions by Budget Plan Report | Predict future financial positions based on budget plans. | The Finance team uses this report to see if allocating £1.6M to Marketing will leave enough funds for other departments. | Forecast shows remaining balance of £300,000 after allocating budgets. | |
| Budget Plan Audit Report | Track all changes made to budget plans, including who made them and when. | An internal auditor reviews this report to ensure that all revisions to the Product Development budget were properly approved. | Displays that the CFO approved a £300,000 increase for Product Development on March 15th. | |
| Forecast Position Summary | Provides a high-level overview of forecasted positions across all budget plans. | The Finance team presents this summary during a meeting to discuss whether budgets align with overall financial goals. | Shows total forecasted spending at £4.9M, leaving a buffer of £100,000. | |
| Forecast Position Details | Offers detailed breakdowns of forecasted financial positions. | The Product Development manager reviews this report to see exactly how their £2.4M budget will be allocated across initiatives. | Lists £1.5M for new product launches and £0.9M for product improvements. |
Budget Control Reports.
| Category | Report Name | Purpose | Use Case | Example |
|---|---|---|---|---|
| Budget Control | Budget Control Statistics | Monitor budget consumption and remaining balances in real time. | The IT manager reviews this report to ensure that spending remains within their £1M budget. | Shows £600,000 spent, leaving £400,000 available. |
| Budget Control Statistics by Period | Analyze budget control data across specific periods, such as monthly or quarterly. | The CFO wants to see quarterly budget usage trends for Marketing to plan better for next year. | Shows that Marketing spent £400,000 in Q1, £600,000 in Q2, and £600,000 in Q3. | |
| Financial Reports | Generate summaries of budget usage and control for high-level insights. | The Finance team prepares a financial report for the board, summarizing spending and available balances across all departments. | Highlights total spending of £4.8M, leaving £200,000 unspent. | |
| Budget Analysis | Compare budget allocations to actual expenditures for detailed insights. | The Finance team uses this report to understand why Product Development exceeded its budget by £100,000. | Shows that higher-than-expected material costs led to the variance. | |
| Budget Control Account Detail History Report | View detailed transaction history for accounts under budget control. | An auditor reviews this report to track all transactions affecting Marketing’s budgeted accounts. | Lists all purchase orders, invoices, and journal entries related to Marketing’s budget. | |
| Budget Control Activity by Project Report | Monitor budget control activities specific to projects. | The Product Development manager reviews this report to track budget usage for a new product launch. | Shows that £1.3M of the £1.5M allocated for the product launch has been spent. | |
| Budget Analysis Report | Provides an in-depth analysis of budgeted vs. actual performance by dimensions or categories. | The Finance team uses this report to assess overall budget performance across all departments. | Highlights that IT remained within its £1M budget, while Product Development exceeded its budget by £100,000. |
Conclusion
In this article, we explored the various reporting options available in Dynamics 365 Finance, covering Basic budgeting, budget planning and budget control reports. These reports provide valuable insights into budget performance, helping organizations track actual spending against budgeted amounts, monitor departmental allocations, and ensure financial compliance. By utilizing these reporting tools, businesses can make informed decisions, stay within budget limits, and maintain fiscal discipline.
In the next article, we will dive into periodic tasks within Dynamics 365 Finance. We’ll discuss their purpose, provide use cases, and walk through examples to help you understand how to effectively manage routine tasks that support ongoing financial operations. Stay tuned for more on automating and streamlining your budgeting processes!
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