BUDGET MANAGEMENT IN ODOO 19

Budget management in Odoo 19 Accounting helps a business plan its money, set limits for each department or project, and track how much is actually spent or earned over a period. This keeps income and expenses under control and in line with the company's financial goals.

Before creating a budget, the user first needs to activate the Budget Management feature. Go to Accounting > Configuration > Settings and turn on the Budget Management option.

After you enable the Budget Management option in Settings, the budget menu appears in the Accounting module. From there, you can open the budgets dashboard and see all the budgets you have configured in one place.

To view your budgets, go to Accounting > Analytic Budget.

The list view shows the main details of each budget: the Budget Name, Period (start and end dates), Responsible person, Activities and Status.To add a single budget, click New and type the Budget Name. 

To create budgets for several periods at once, click Generate. In the Generate Budget window, set the From and To dates, choose the Period (Month, Quarter or Year), and click Split. Odoo creates a separate budget for each period in Draft status

After that, all the possible combinations of the chosen Analytic Plans will be displayed there as shown in the screenshot below.

By using this, users can easily create some combinations of analytic accounts, so it's not necessary to input that information. 

Then to add a new budget, click on the New button.Use the Period field to set the start and end dates of the budget. The Company field is filled in automatically from your database.The Budget Type field has three options: Revenue, Expense and Both. Choose Expense to track purchases and vendor bills, Revenue to track income, or Both to track the two in one budget.

Under the Budget Lines tab, users can define specific financial allocations using the Add a Line option. Each budget line can be associated with parameters such as Project, Department, or Internal Category to ensure precise tracking. 

The Budgeted Amount represents the planned amount allocated for a specific budget. The Committed Amount refers to the amount already committed through approved transactions, such as purchase orders or contracts, while the Achieved Amount represents the actual amount spent or received. These amounts help compare the planned budget with the committed and actual amounts.

Once all the required details are configured, users can click Open to start monitoring the budget, or click Cancel if any changes or revisions are required.

In Odoo 19 Accounting, Theoretical (%) shows the percentage of the budget that is expected to be used based on the current date and the budget period. Achieved (%) shows the percentage of the budget that has actually been used or earned based on posted accounting entries. Committed (%) represents the percentage of the budget already reserved through confirmed commitments, such as purchase orders, even if the related expenses have not yet been recorded. Together, these percentages help users compare the expected, actual, and committed amounts and monitor the overall budget performance.

The Revise button is used to update or adjust an approved budget when changes are required. The Reset to Draft button moves the budget back to the draft stage, allowing users to make changes to its details. The Done button marks the budget as completed once all planned activities are finished, indicating that no further changes are expected for the budget period.Let's assume the user purchased some products for the Active account project. To create a new purchase order, go to the Purchase module and click the New button.Before confirming the purchase, the user needs to add the Analytic Distribution on the order line. Select the same analytic account that is set on the budget line (Active Account). This is what links the purchase to the budget. Then click Confirm Order.

Now move back to the Accounting module and open the Budget again. The amount of the purchase order is now added inside the budget Committed amount.

Now move back to the Accounting module and open Budget 2026 again. After the bill is posted, the $500.00 appears in the Achieved column of the Active account line, as shown in the screenshot.

The Theoretical amount is the part of the Budgeted amount that should have been used by today, if the spending was spread evenly over the period. It is calculated as Budgeted × (Days Passed ÷ Total Days). In our example, the Budgeted amount is $1,000, the period is January 1st to December 31st (365 days), and 280 days have passed up to October 7th, so the Theoretical amount is (1,000 ÷ 365) × 280 = $767.12. The Committed % shows how much of the budget is reserved by confirmed purchase orders. It is calculated as (Committed ÷ Budgeted) × 100, so (500 ÷ 1,000) × 100 = 50%. In the same way, the Achieved % shows how much of the budget has actually been spent through posted vendor bills. It is calculated as (Achieved ÷ Budgeted) × 100, so (500 ÷ 1,000) × 100 = 50%.

Currency conversion on budget

The budget is always shown in the company currency. If a purchase order is created in another currency, Odoo converts the order amount to the company currency using the exchange rate, and then adds it to the budget line.

The company currency is USD, but the purchase order is created in SAR. Odoo converts the order amount to the equivalent USD using the exchange rate (100 × 0.2179 = $21.79), and this converted amount is added to the budget line.

Budget Tracking with Analytic Distribution Percentage

The amount added to a budget line depends on the Analytic Distribution percentage on the purchase order line. Odoo takes only that percentage of the line amount for the analytic account, not the full amount.

In this purchase order (P00054), set the Analytic Distribution to 50% on Asustek - Wood Corner for the $100.00 line and confirmed the order. Since only half is assigned to this account, only $50.00  is added to its Committed amount.

Tracking Project and Department in One Distribution

In this order, the $1,000 line is distributed 50% to the project Asustek - Wood Corner and 50% to the department Administrative. Odoo calculates each one separately, so $500 is added to the project's budget line and $500 to the department's budget line.

When we go to the budget, we can see that $500.00 is added to the Committed column of the Asustek - Wood Corner budget line, and another $500.00 is added to the Committed column of the Administrative budget line.

Each budget line has an Audit button. Clicking it opens the Budget Report for that line, showing every record that makes up the Budget, Committed and Achieved amounts, such as the purchase orders with their date, description, project, department and amounts. This helps you check exactly where each amount in the budget line comes from.

Tracking Income with a Revenue Budget

When the Budget Type is Revenue, the budget lines track the income posted through customer invoices. When the Budget Type is Both, the budget lines track income and expenses together. 

In our example, the line [INT] After-Sales Services has a Budgeted amount of $10,000.00. After a customer invoice with the same analytic account is posted, $100.00 appears in the Achieved column.

Just like expenses, revenue can also be tracked by Project, Department or any other analytic plan, and the Analytic Distribution percentage works in the same way. 

Budget Report

 In Odoo 19 Accounting, the Budget Report feature provides a clear and convenient way to review and analyze the budgets configured in the system. Available from the Reports menu, it helps users monitor budget performance by comparing the planned amounts with the actual results, making it easier to track financial performance and control budgets.

The Budget Report displays a structured list of important financial details, including Date, Description, Project, Department, Internal Category, Budgeted Amount, Committed Amount, and Achieved Amount. This organized view helps users easily monitor budget performance, compare planned and actual amounts, and identify areas that may require adjustments or resource reallocation.

In Odoo 19 Accounting, the Budget Report provides enhanced Pivot and Graph views for analyzing budget performance. These views allow users to visualize financial data through charts and tables, making it easier to compare budget figures, identify spending trends, and evaluate budget performance across different departments or projects.

CONCLUSION

Odoo 19 budget management makes it easy to plan, track and control income and expenses by project, department or any analytic plan. With Committed, Achieved and Theoretical amounts and the Audit report, you always know how much of your budget has been used.