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Zero-base budget is
a budgeting method developed by a former President of the United States in which
funds are allotted based on a prioritized list of needs. The SCI Zero-Base
Budget Module goes a step further, however, by allowing the process to be
multi-departmental with up to 4 priority levels.
Request for funds are initially made and prioritized by each individual. All
pertinent information in entered including: description, category (eg. fixed
asset, operations improvement), time and period of expenditure (eg. Month
beginning June, quarterly), and cost. All requests from within each department
are prioritized on the departmental level. The departmental requests are sent to
the corporate level for final discussion. Available funds are then allocated to
the items in priority order. After all the funds are allocated, the remaining
requests are denied.
At each level, numerous reports are available to sort and select the available
data to make analysis easy.
In addition, the Zero-Base Budget Module is tied very closely with the Accounts
Payable Module. All payables are associated with a specific budgeted item, so
comparisons of actual amount to budget amount can be generated at any time.
Furthermore, budgets are checked during voucher entry and warnings are indicated
if the budgeted amount is exceeded.
Also included are cash forecast reports based on budgeted funds. |
