Before getting started...
We recommend watching this quick training video (3 min), which gives a brief and strong understanding on how to enter sales in Budgeto. Learn how to use the two planning methods, and how to enter your sales ($) manually for any month within your financial forecasts!
Become a Budgeto expert by watching the other videos available! These training videos can be found in our Multimedia Gallery (Be sure to check back often, as more videos are in the works!).
Click here to access the Budgeto Multimedia Gallery
Budgeto currently uses the JUST-IN-TIME (JIT) method when managing inventory.
This means that the inventory is bought and consumed during the same month.
Click here to access the inventory menu within the Budgeto app.
Q: "I do not see my inventory impact on my Profit and Loss report!"
A: This is completely normal, do not worry!
Buying inventory never has an impact on cost of sales. It has an impact on the Inventory line and Cash on the Balance Sheet. If there is a payment delay, it also has an impact on Accounts Payable.
The use of the inventory module has an impact on the Balance Sheet and Cash Flow reports only.
Therefore, NO IMPACT on the Profit and Loss results.
EXAMPLE:
To understand how to use the Inventory menu, let's take a concrete example:
- You sell 10 units of Product A in October;
- The selling price of Product A is $100;
- The cost of Product A is $50 per unit;
- Your provider's payment term is 30 days (1 month).
Here's how the transaction will be counted in Budgeto:
- $500 inventory will be purchased and consumed automatically by Budgeto in October;
- The impact on the inventory will be $ 0 because there is an increase of the inventory of $500 at the time of the purchase and a decrease of the inventory of $500 during the consumption
($500 - $500 = $0); - Your 30-day payment term will result in a $500 disbursement in November in your cash budget.
Manually change your inventory planning (PLANNING MANUAL PURCHASES)
To change your inventory planning within the Budgeto app, follow these steps;
Click here to access the inventory menu within the Budgeto app.
1- Access the main SALES menu from the LEFT SIDE MENU;
2- Click on the "Inventory" button near the right side of the screen;
3- Click on the BLUE ARROW next to the product you wish to modify the inventory planning of;
4- Here you will be able to see the current INVENTORY LEVEL each month for every year of your budget, and you will be able to enter the MANUAL VARIATIONS of inventory purchases or sales for each available month;
EXAMPLE:
Continuation of previous example above:
- You sell 10 units of Product A in October;
- The selling price of Product A is $100;
- The cost of Product A is $50 per unit;
- Your provider's payment term is 30 days (1 month).
Now, consider that you have to buy your inventory 6 months in advance. Here's how to handle this situation in the Inventory menu:
In the PLANNING OF MANUAL PURCHASING schedule, you must enter a positive manual inventory change of $500 in April. Yes, you sell your product in October but you must buy it 6 months in advance, in April. You will then see your "Inventory Level" balance increase to $500 as of April;
- Then, you must enter a negative $500 manual inventory change in October to reduce your inventory level to $0 (as you sold these products in October);
- For the payment term, you must enter the same payment term as for your product. In this case, 30 days
Here's how the transaction will be counted in Budgeto:
- With a 30-day payment term, Budgeto will disburse $500 inventory 30 days after the April manual positive inventory change. The supplier payment will be made in May. If you had chosen 60 days, the payment would have been made in June;
- In the same vein, the system will cash $500 in November for the manual change of negative inventory of October. This cashing will cancel the disbursement of $500 automatically generated by Budgeto at the time of sale, thus the impact on the cash budget for the month 11 will be $0
Need help? These resources are for you!
1- There is a search bar at the top right of the screen, use it often! Use words that you see on the section you are dealing with in order to search for related articles in our Knowledge Base.
2- If you haven't found an answer to your question, create a support ticket and our team will find an answer for you:
Click here to create a new ticket for help
3- If you have any other questions about Budgeto, write us an email at: [email protected]
Happy Budgeting and know that we are here for you if you need help!
The Budgeto Team
Join the Conversation!
Follow us on our social media channels for Budgeto tips, how-to guides, company updates, and more!
Related Articles (Please refer to the links below)