FYI - Comparing Non-Salary Planning Methods

 

FYI - Comparing Non-Salary Planning Methods

      

Option 1 - Monthly Spreading for Non-Salary Method

*BEST for Initial Planning and may be sufficient for some keys*  

·        Simpler Data Entry - One annual estimate and entry per key at expense class and budget type in the Spreading Grid which populates the Monthly Grid

·        Entered in the Spreading Grid and Maintained in the Monthly Grid

·        Spreads planned expenses evenly over all months

·        Ideal for situations where spending is relatively consistent through the year  

·        If not maintained, forecast is typically "smoother" due to the average spreading of expenses across the year, forecast may be off if funds are spent at a higher or lower rate than the even spread; the greater the difference of actuals to plan the further the forecast may be off.

·        Less likely to require detailed maintenance on every account key; some planned expenses may need to be maintained at the month level as actuals and plan differ.

      

Option 2 - Monthly Planning for Non-Salary Method

* BEST for tweaking Initial planned expenses by month in account keys where a very accurate forecast is necessary*    

·        More Complex Data Entry - Monthly estimate and entry per key at expense class and budget type in Monthly Grid

·        Entered and Maintained in the Monthly Grid

·        Allows the user to estimate where expenses will actually fall 

·        If not maintained / updated the forecast can be significantly off if larger expenses occur in months other than anticipated

·        A lot of effort to maintain, look at actuals each month and re-estimate expenses for future months in the fiscal year at  expense class and budget type