Someday any large enterprise with the managerial accounting will need to draw up an expenditure budget for the subdivisions.
There are few ways of expenses planning if considering the work of the subdivisions, but I would like to mention one of them which I find the most effective and quite simple:
Economic Department distributes the form of the expenses plan for the period (month, quarter, year) to the heads of structural subdivisions. This form is similar to the form of the profit and loss account, but each expense item is interpreted and followed by the calculations, then automatically added to the corresponding budget item.
The hyperlink helps to go to the item from the main report directory.
Each subdivision can provide the information about the existing expense items.
The heads of the subdivisions render the budget estimates to Economic Department, where
all budgets are gathered into a single budget with the details on each item in terms of the subdivisions.
Then budget estimate is to be approved by the Board of Directors. When the single budget is
approved it means that all the budgets of the subdivisions are approved as well. After that these budgets are distributed to the heads of the subdivisions in order to be attached to the main financial document for the period.