CUBS: Confusion on how sub-categories "roll-up" into parent categories
Posted: Mon Nov 01, 2010 11:25 am
I just read CUBS: Budget subcategory strategies and I'm left with a question:
How exactly do the sub-categories roll-up to the parent categories?
Let me try to explain with an example (amounts are made up):
We have 2 Elders Quorums, and there is currently a "Budget:Elders Quorum" category. We want to allocate $100 to each Elders Quorum and $50 to be allocated as a shared amount.
So, essentially I was thinking about allocating the $250* as follows:
OPTION 1:
Budget:Elders Quorum:EQ1 --- $100
Budget:Elders Quorum:EQ2 --- $100
Budget:Elders Quorum --- $50
Or should I instead put the $50 into a sub-category as follows:
OPTION 2:
Budget:Elders Quorum:EQ1 --- $100
Budget:Elders Quorum:EQ2 --- $100
Budget:Elders Quorum:Shared --- $50
Budget:Elders Quorum ---- $0
So, here is my best guess of how the system will work:
You could go with either option because every category can have it's own balance, and it's sub-categories can have their own balance (so option 1 the balance of my main EQ category would be $50 and option 2 the main EQ category's balance would be $0). For Reporting purposes, the Monthly Financial Report is going to combine my EQ category and all it's sub-categories together to get the final balance ($250 for both options).
Furthermore, my guess is that I would be able to write checks against any of the categories or sub-categories for either of my options above... the monthly report is just going to roll all of the expenses together and give me my final numbers in aggregate for each main category (so a negative balance for EQ1 would be combined with a positive balance for EQ2 and all rolled up nice and neat for reporting).
Am I thinking correctly about all of this?
Thanks~!
How exactly do the sub-categories roll-up to the parent categories?
Let me try to explain with an example (amounts are made up):
We have 2 Elders Quorums, and there is currently a "Budget:Elders Quorum" category. We want to allocate $100 to each Elders Quorum and $50 to be allocated as a shared amount.
So, essentially I was thinking about allocating the $250* as follows:
OPTION 1:
Budget:Elders Quorum:EQ1 --- $100
Budget:Elders Quorum:EQ2 --- $100
Budget:Elders Quorum --- $50
Or should I instead put the $50 into a sub-category as follows:
OPTION 2:
Budget:Elders Quorum:EQ1 --- $100
Budget:Elders Quorum:EQ2 --- $100
Budget:Elders Quorum:Shared --- $50
Budget:Elders Quorum ---- $0
So, here is my best guess of how the system will work:
You could go with either option because every category can have it's own balance, and it's sub-categories can have their own balance (so option 1 the balance of my main EQ category would be $50 and option 2 the main EQ category's balance would be $0). For Reporting purposes, the Monthly Financial Report is going to combine my EQ category and all it's sub-categories together to get the final balance ($250 for both options).
Furthermore, my guess is that I would be able to write checks against any of the categories or sub-categories for either of my options above... the monthly report is just going to roll all of the expenses together and give me my final numbers in aggregate for each main category (so a negative balance for EQ1 would be combined with a positive balance for EQ2 and all rolled up nice and neat for reporting).
Am I thinking correctly about all of this?
Thanks~!