Monthly Distribution

You can distribute annual budgets throughout the months of a fiscal year in ERPNext by using a Monthly Distribution.

You can specify how much of the budget should be spent each month rather than distributing the entire amount all at once. This is beneficial for:

  • Equal allocation: Distributed equally throughout the course of the year.

  • Seasonal allocation: Set aside larger sums of money for marketing in December, for example, when demand is at its highest.

  • Custom allocation: Modify each month according to anticipated expenditures.

The Budgeting function and Monthly Distribution collaborate closely to make sure that monthly spending caps are met.

1. Creating a Monthly Distribution

  1. Select Monthly Distribution under Accounts > Budgeting and Cost Centres.

  2. Select New.

  3. Complete the following:

    • Monthly Distribution Name, such as Marketing FY25 Distribution.

    • Business.

    • Total Allocation (%) > must equal 100%.

  4. Enter each month's percentage in the Distribution Table:

    • For instance, January 5%, February 5%, March 10%, and so on, December 15%.
  5. Keep the Monthly Distribution handy.

2.Applying Monthly Distribution in Budgets

You can choose a Monthly Distribution when making a Budget:

  1. Select Accounts > Budgeting and Cost Centres > Budget.

  2. Select the distribution you made in the Monthly Distribution field.

  3. This allocation will be used to validate the budget month by month.

3. Validation and Reports

  • Monthly Distribution guarantees that, rather than using annual limits, transactions are compared to monthly limits.

  • The applied monthly distribution is reflected in reports like the Profit and Loss Statement and the Budget Variance Report.

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