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Slide notes: We can include Financial, Physical and KPI Budgets in our General Ledger, and we can have some Accounts only with Financial Budgets, while others have Financial and Physical, or all 3. To make our Budget process more efficient, we can set up our Ledger so that when we process any Physical Budgets, then they will perform the Financial Budget and the KPI Budget automatically.

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Slide notes: First, we just note that for this Account, there is no Financial Budget at the moment.

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Slide notes: And we note also, for the same Account, that there is no KPI Budget at the moment.

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Slide notes: Now we will apply 1 Budget Quantity for Physicals, and then we will see how it flows through to the Financial and KPI Budgets by itself.

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Slide notes: We capture a Budget of 15 Hectares to be planted. That is the KPI, which the system will translate to a Physical of 480 Man Hours, based on the KPI factor listed above.

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Slide notes: The 15 Hectares have now become 480 Man Hours, i.e. the Physical Budget for the Period.

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Slide notes: When we look at the Financial Budget, we can see that there is no need to do it, because it has been done automatically.

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Slide notes: And when we look at the KPI Budget for the same Account, we can see that it has also been done by the system. The conclusion is that when we use the Resource and KPI settings, and the Financial Conversion Rate, then we can perform the Physical Budget only, and the Financial and KPI Budgets are done automatically for those Accounts. However, we can also choose to do the Physical by itself, only, or only the Physical and Financial, or only the Physical and KPI.

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Slide notes: Back on our Physical Budget screen, we can see that for this Account, at the moment, we are using the KPI and the Conversion for Financial. Therefore, when we capture a Budget Quantity, it is actually the KPI, in this case Hectares, which the system then uses to calculate the Physical, in this case Man Hours.

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Slide notes: See how the 20 Hectares have changed into 640 Man Hours.

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Slide notes: However, if we remove the effect of the KPI by making it zero, then we are no longer applying the KPI Budget, and then, when we capture a Quantity, then it is seen as the Physical itself, i.e. the Man Hours, and not further converted, nor will the KPI Budget be updated.

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Slide notes: The 20 and the 30 have not changed, and are seen as the Physical Quantity itself, i.e. Man Hours.

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Slide notes: The Conversion factor is for the Financial Budget update. If we change that to zero, then no update will be performed on the Financial Budget.

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Slide notes: So, the principle is that for any GL Account, we can do a Physical Budget or not at all. And when we do a Physical Budget, it can be ONLY the Physical Budget or it can automatically include the Financial and KPI Budgets, or either of those. When we do the Physical Budget only, it is then optional whether to capture the KPI and Financial Budgets for that Account with the direct Capture options for those Budgets.