Budgeting with SIBP: The Default Model Types
Default Revenue and Expense Types
In our last blog, we introduced the components of budget lines and briefly introduced multiple budget line types available within Sage Intacct Budgeting & Planning (SIBP). We identified the key components of the budget line are amount, occurrence, and spread.
These components form the basis of the default model types assigned to revenue or expense budget lines. The default revenue and expense types use the components to construct models that populate a particular budget line. Building on these base components, we will introduce you to a variation of the default revenue model type that SIBP calls “Services”.
Default Expense Type
Creating a budget line in expenses will default the model type to Expense. This model type utilizes amount, occurrence, spread, and expensing period (optional) to determine the values for the budget. The expensing period enables the user to amortize the budget amount over the indicated number of periods.
New users often utilize this expense model type when initially transitioning from excel to SIBP for budgeting. Or more commonly used for budgeting fixed expenses like rent, utilities, subscriptions, etc.
Simple Revenue
Creating a revenue budget line will default the type to Revenue. This type is the most basic model. Using only the base components (amount, occurrence, spread) to budget revenue.
The primary difference between the revenue model and the expense model is the absence of the expensing period found in the expense model.
The default revenue model type provides a quick, simple, and straightforward method to start budgeting for revenue. It is most effective when budgeting for any general revenue that doesn’t fit any particular model.
Service Revenue
The services model type is a slight variation from the default revenue and expense model types. The services model encapsulates intangible types of revenues, serviced over time. For example, budgeting for digital media services, generating $1,000,000 in revenue over 3 months would utilize the services model type. Just like the expense and revenue models, the base components are an essential part of the Services type when budgeting revenue.
Join us next time as we take a closer look at the Subscription and License revenue type models. In the meantime, let us know how you have utilized the budget line types to setup your revenue, expense, and service models.
What’s Next?
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A Consultant on CLA's Intacct team, who brings over a decade of management and accounting experience in the technology, manufacturing, and service industries. Throughout his experiences, Ted has driven finance teams to achieve more through leveraging technology to improve business processes.