HOW TO SETUP BASIC BUDGETING IN MICROSOFT DYNAMICS 365?

In Dynamics 365, we have 3 boxed approaches for budgeting as the below

to implement the budget in Dynamics 365, you need some prerequisites

Prerequisites

I suppose you have a chart of account and create the fiscal calendar, financial dimension ..etc

1- you must configure account structure 

you can create one account structure with a financial dimension for budget

 General ledger /chart of accounts / structure / configure account structure 

2- Define currency exchange rate

just go to General ledger /currencies /currency exchange rate 

and set up your rate for the type budget

3- Configure ledger set up 

link budget account structure, fiscal calendar, and budget exchange rate in Ledger form

General ledger / ledger setup / ledger

4- create a journal for the budget if you need 

it must be with budget journal type

General ledger /journal setup /journal names

5- create the financial reasons 

Go to General ledger /journal setup /financial reasons

Basic budget set up

1-define basic budget parameters 

Go to Budgeting > Setup > Basic budgeting > Budgeting Parameters

select the budget journal and set the time period  for budget balances

to understand the time period  for budget balances parameter

Imagine you have a budget for the account of $ 6000 for the year 2018 divided into $ 500 per month.

So your budget entries: Jan 2013: $ 500, Feb 2013: $ 500, etc.

You have posted an invoice with the amount $ 400 in January.

It is now February. You want to create a new transaction (amount $ 550). The options will do the next:

Fiscal period: Your budget space is not enough. It is only $ 500

Fiscal year: The remaining budget is now $ 6000-$ 400 = $ 5600. So enough budget to proceed.

Fiscal year to date: The remaining budget is: (2 * $ 500) - $ 400 = $ 600.

you can see more details about budget parameters here 

2-create budget workflow if you need 

Go to Budgeting > Setup > Basic budgeting > budgeting workflow

3-define budgeting Dimension

Go to Budgeting > Setup > Basic budgeting > Dimension for budgeting

4-Create budget models

also, you can assign submodels if needed

Go to Budgeting > Setup > Basic budgeting > budget models

5-Create budget Codes

You can use budget codes to categorize budget types

Go to Budgeting > Setup > Basic Budgeting > Budget Codes

Original budget – Use when you are creating an initial budget amount for an account.

Transfer – Use when you are moving a budget amount from one account to another.

Revision – Use when you are changing the budget amount for an account. Use this budget type after you have posted an original budget register entry for the account

click here for more details

6-Create budget Allocation terms

to define the financial dimension values and the percentages that are used to generate budget allocations

Go to Budgeting > Setup > Basic Budgeting > Budget Allocation terms

These budget allocation terms provide an automated way to distribute percentages of budget amounts across financial dimension values

7-Create budget Transfer rules

To enable the budget transfer rules that you defined, select Use rules for budget transfers in the Budget parameters form

Go to Budgeting > Setup > Basic Budgeting > Budget Transfer rules

select the account structure and define rule lines as above mention 

you can copy from existing rule by click copy button 

for more details

https://technet.microsoft.com/en-us/library/hh209073.aspx?f=255&MSPPError=-2147217396