Budgeting and Forecasting
FinanceDefinition
The processes of planning and predicting future financial performance based on current data and trends.
Detailed Description
Budgeting and forecasting are financial practices used to plan and predict an organization's future financial performance. Budgeting involves creating detailed financial plans that outline expected revenues and expenditures over a specific period. Forecasting, on the other hand, uses historical data and analysis to predict future outcomes, allowing organizations to adjust their financial strategies accordingly. In ERP systems, these functions are crucial for financial planning and analysis, helping businesses maintain financial health and make informed decisions.
Key Features
- Integration with other financial modules
- Real-time data updates
- Revenue and expense tracking
- Scenario analysis
- Variance analysis
Common Modules
Analytics and Reporting Module
Enables comprehensive analysis and reporting of financial data.
Financial Planning Module
Facilitates detailed financial planning and budgeting processes.
Popular Implementations
Implementation in a Manufacturing Firm
A manufacturing company implemented budgeting and forecasting to streamline its financial planning aligned with production schedules and inventory management.