Record to Report and Budget to Actual

Use this finance workflow to connect approved budgets, posted actual activity, management analysis, and the detailed period close. It helps the organization explain variances rather than treating a report run as final approval of the books.

Where this workflow fits

This workflow is useful for organizations with formal accounting, budgeting, financial reporting, and period-close responsibilities. Approved budgets and operating transactions feed reporting. Reconciliations and variance explanations pass to Month-End Financial Close.

Featured capabilities

• Accounting & General Ledger: Review posted asset or period accounting.
• Budgets & Cost Centers: Establish the approved plan and budget comparison.
• Banking & Reconciliation: Match payments against bank activity.
• Reporting in VersaCloud ERP: Review project or financial results.

People and preparation

Finance needs the reporting entity, period, chart of accounts, relevant dimensions, budget owner and status, reconciliation responsibility, and assumptions used for comparisons.

Process areas and stages

1. Establish plan and reporting basis

   Owner: Budget owner and finance. Input: Period, accounts, and operating plan.

   Work and decision: Confirm the accounting periods, GL accounts, budget types, budget statuses, and dimensions needed for the reporting period. Create the period budget with budget items for the relevant GL accounts, then review and approve it through the organization's budget-status process. Prepare budget items for the relevant GL accounts and dimensions. Review and approve the version under the company’s status process so later variance analysis has a known baseline.

   Evidence and handoff: Approved budget and reporting scope set the comparison basis.

2. Record the actuals

   Owner: Operating teams and accounting. Input: Sales, purchasing, payroll, banking, and journal activity.

   Work and decision: Record and post financial activity through the operating and accounting processes that apply. Use banking and reconciliation work to keep cash activity aligned with recorded transactions. Complete and post the relevant transactions. Reconcile bank and subledger items through their normal processes; missing or unposted activity can distort the comparison.

   Evidence and handoff: Posted GL and supporting reconciliations provide the actual activity.

3. Analyze results

   Owner: Finance and operating owners. Input: Approved budget and selected-period actuals.

   Work and decision: Run financial reports for the selected date range, organization, and dimensions. Compare actual GL activity with the corresponding budget amounts, then investigate material differences with the responsible operating owner. Run financial and budget reports for matching period, entity, and dimensions. Ask the responsible owner to explain material differences and distinguish timing from a changed plan or transaction error.

   Evidence and handoff: Variance explanations and supporting reports identify decisions or corrections.

4. Govern changes

   Owner: Budget approver and accounting. Input: Variance review.

   Work and decision: Update the budget status as the period progresses. Keep budget changes, financial corrections, and report assumptions traceable to the accounting period they affect. Apply approved budget changes through the budget status process and financial corrections through normal posting controls. Preserve the version and period used for each report instead of silently changing the baseline.

   Evidence and handoff: Traceable budget and accounting revisions support a repeatable report.

5. Hand off to close

   Owner: Finance controller. Input: Reviewed reports and unresolved exceptions.

   Work and decision: Hand the completed period review to Month-End Financial Close for reconciliations, approved adjustments, financial-statement review, and period close. Send reconciliations, approved adjustments, and variance explanations to Month-End Financial Close for its detailed checks and final financial-statement review.

   Evidence and handoff: Period review is ready for close, or exceptions have an owner and due action.

Variations and exceptions

Budget changes and accounting corrections answer different questions. A management variance review can proceed with open items, but final statements follow the approved month-end close.

Completion and review

The approved budget, posted actual activity, financial reports, and material variance decisions can be traced to the same accounting period. The period is ready for the detailed month-end close process.

Related workflows

• Month-End Financial Close
• Inter-Entity Period Close