Budget Management in Odoo

A budget is a microeconomic concept that shows the contract made at the same time one good is exchanged for another. A budget is used for a financial plan for a defined period, normally a year. Budgets can be defined based on multiple criteria, such as departments, cost centers, cost types, commodity groups, users, and combinations of these. Effective budget management not only contributes to better cash management but also helps control financial results, increase financial clout and performance measurement.

In Odoo Budget management is used to know your financial status against the planned financial details. Budget management plays an important role in the success of any business. In this Blog, you are going to discuss “Budget Management in Odoo”. Odoo budgets are used for a company to get a good grip on forecasted expenses and revenues.

Now Lets’ see how to manage budget management in Odoo

Firstly you have to install the Accounting and Finance module in your database.


-To enable budget management feature in Odoo:

Go to Accounting -> Configuration ->Settings and tick the checkbox of ‘Budget Management’ and ‘Analytic accounting’ then click on Save button.

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Now you can configure the three things to work with Odoo budget management

1. Budgetary Positions

2. Analytic Accounts

3. Budget

1. To create Budgetary Positions

Budgetary positions are the general accounts for which you want to keep budgets like expense or income accounts. After enabling the budget management feature then you can create the budgetary positions.

Go to Accounting-> Configuration ->Management -> Budgetary Positions
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Now you have to enter the name of the budget and add the items to select the account.
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At that time you can add following fields in accounts section like code, name, type, default taxes, tags, group.
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2. To set Analytic Accounts

Now let us see the configuration of the budget. At that time you can create an analytical account by entering the Accounting module.

Select Accounting Menu -> Advisers -> Analytic Accounts -> Open Charts and click on Create button.

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3. To set a Budget

Select Accounting ->Advisers ->  Budgets -> Create New Budget

Now you can enter the name of the budget and create budget lines to click on add an item button.

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At that time you can select the Budgetary Position related to the budget lines and set the start date, End date, Paid date, Planned amount, practical amount and Theoretical amount.

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Now you’ll need to confirm and approve the budget.

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