The purpose of this article is just to give you a quick overview of the Materials tab within your LMN Budget. For a complete tutorial, we strongly recommend you watch our onboarding videos - specifically Step #2 under LMN's Budgeting & Estimating 5 Step Onboarding.
- Most companies can leave the Materials Tax section at 0% because sales taxes paid on materials are already included in their accounting totals for material spending last year. Only use the material tax section at the top if:
- You pay sales tax on all materials AND
- The cost of sales taxes are not included in your forecast amounts.
- Similar to your Sales Forecast, we recommend breaking your Materials down by Division Type.
- The key number in the materials budget is the Forecast which will indicate your Forecast for the budget year. Your Previous numbers would be from the year prior.
- Make sure you're forecasting enough materials to keep up with your forecast sales goal (e.g. if you're forecasting more sales than last year, you're likely going to need to forecast more materials)