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How to create Budget for Balance sheet accounts in D365 F&O

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Posted on by Durga Rao P

Hello All,

I am implementing Budgeting module in D365 F&O & I need to know & create Budget register entries for Balance Sheet accounts.

So, could you help me to provide me your valuable suggestion to create budget register for Balance sheet accounts.

Regards,

Durgarao.

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Dynamics 365 Finance

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Zain Mehmood 3,128 Moderator on at

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How to create Budget for Balance sheet accounts in D365 F&O

Hi,

Yes, you can create Budget register entries for Balance Sheet accounts in D365 F&O — not just Profit and Loss accounts.

A few things to keep in mind:

In the Budget register entry, make sure you select the correct ledger account (from the balance sheet section) when you create the entry.

Typically, balance sheet budgeting is used for forecasting things like cash, receivables, payables, inventory, or fixed assets rather than operational expenses.

You can also define a separate budget model for balance sheet budgets if you want to track them independently from your P&L budgets.

Microsoft Learn has a good overview on how to create budget register entries here:

https://learn.microsoft.com/en-us/dynamics365/finance/budgeting/create-budget-register-entries

Hope this helps,

Zain
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Abhilash Warrier 506 on at

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How to create Budget for Balance sheet accounts in D365 F&O

Hi Durga,

Please find below, recommended setups/configuration for the Budget register entry.

Budgeting Parameters

Dimensions for budgeting

Budget Model

Budget Codes

Budget allocation term (Optional)

Budget transfer rules (Optional)

Budget cycles

Budget register entry

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Saif Ali Sabri 1,932 Super User 2025 Season 1 on at

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How to create Budget for Balance sheet accounts in D365 F&O

To create budget register entries for Balance Sheet accounts in Dynamics 365 Finance and Operations (D365 F&O), follow the steps below. Although budgeting is typically used for Profit and Loss accounts, D365 does allow budgeting for Balance Sheet accounts when properly configured.

✅ Solution: Create Budget Register Entries for Balance Sheet Accounts in D365 F&O

Step 1: Enable Budgeting for Balance Sheet Accounts
By default, budgeting is commonly used for Profit and Loss accounts, but you can budget for Balance Sheet accounts as well.

Navigate to: General ledger > Chart of accounts > Main accounts

Select the Balance Sheet account (e.g., 110100 - Cash or 150000 - Inventory).

Ensure that ‘Do not allow manual entry’ is unchecked (optional, if needed).

Under Budgeting fast tab:

Set ‘Include in budget’ to Yes.

Step 2: Create a Budget Model (if not already created)

Go to: Budgeting > Setup > Budget models

Create a new budget model or use an existing one.

Ensure it's marked for use in Budget register entries.

Step 3: Create a Budget Register Entry

Go to: Budgeting > Budget register entries

Click New

Select Budget model

Choose Fiscal year

Enter Name and Description

Select a Budget code (make sure the code allows manual entries)

In the Lines section:

Enter the Balance Sheet main account

Enter Financial dimensions (if applicable)

Specify the amount (positive for debit increase, negative for credit increase)

Choose the period (can be a specific month or entire year)

Step 4: Validate and Post

Click Validate to check for any configuration issues.

Click Post to commit the budget entry.

📌 Notes:

No budget control is enforced for Balance Sheet accounts, but entries are still tracked for reporting.

Use budget reports or Financial reporter (Management Reporter) to track budget vs actuals.

Balance Sheet budgeting is often used for cash flow planning, loan repayments, or capital expenditures.

Would you like a quick example with account numbers and entries?