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Slide notes: Physical Budgets may be used for some GL Accounts while not for others. In most Businesses, but especially Agriculture and Manufacture, Physical Budgets are useful for some GL Accounts ranges. When we need to capture Physical Budgets for an upcoming Financial Year, which option should we use? We use the option called 'Phys: Budget and Expected' because when we process a new Budget for an upcoming Financial Year, then an Expected Budget is also created with the same figures as the Budget itself, and this Expected Budget becomes the basis for all Revised Budgets during the upcoming Financial Year.

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Slide notes: As with Financial Budgets, the budget action is by GL Account, and we can retrieve Account Codes with all the usual lookup methods.

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Slide notes: From the tutorials on the Principles of Budget Capture, and with regards to Physicals Budget Capture, we already know that the Physicals Budget can be used with or without Resources and KPI's. For this Account, we use it with Resource and KPI. Therefore, when we capture a Budget quantity for this Account, it is not actually for Man Hours on this Account, but rather for the number of Hectares, i.e. the KPI, that will be planted, and therefore the Quantity will be used to calculate the required Man Hours, based on the Hectares we wish to plant.

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Slide notes: So, in each case, we plan to plant 25 Hectares in the Period, therefore the number of Hectares multiplied by the Number of Man Hours required per Hectare is calculated and inserted as the Budget Quantity for the Physical, because the Physical for this Account is Man Hours. The KPI Budget will actually be updated with the number of Hectares that we capture, and the Financial Budget will be updated with the Man Hours multiplied by the Conversion rate.

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Slide notes: With Physical Budgets, we may often have situations where we do not Budget for all the Periods, nor necessarily for the same Periods as in the Prior Budget. Planting is such an example. For this Account, our Planting will not take place for all Periods of the year, nor for the same Periods as last year.

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Slide notes: Optionally, we may revise the remaining Periods of the Current Budget Year. In this case, we choose not to.

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