Sales Budget

Name of Team :
1. Nurfitri Juliani Hapsari 1510631030145
2. Armike Febtinugraini 1610631030049
3. Dede Mustopa 1610631030072
4. Niken Tia Sugianto 1610631030197
5. Resha Ariella 1610631030230
What do you think about Sales Budget?

Sales budget is the basis for preparing other budgets and is generally
arranged first before composing other budgets. Therefore, the sales budget is
often referred to as the key budget. Success or failure of a company depends
on the success of the sales department in increasing their sales. Sales are
the important things in achieving the goals of the company to reach the
maximum profit.
That’s the reason why we must make some prepare for the sales
budgeting.

Conclusion : Sales budget is predicts sales quantities and selling prices to

determine the amount of sales revenue the company expects to generate.
What is the purpose of preparing the
sales budget?
The sales budget is used to predict how the effective the
company level of sales in the future periods by analyzed the data which
is of past events, especially for the sales. Purpose of preparing the
sales budget, are :

a. Planning
b. Coordinating
c. Controlling
What are the Factors that influenced the
preparation of the sales budget?
According to M. Nafarin (2007: 169), the sales budget is
influenced by several factors:

1. Marketing Factors
2. Financial Factors
3. Economic Factors
4. Corporate Policy Factors
5. Population Development Factors
6. Technical Factors
7. Other Factors
What are Sales Budgeting Methods?
To get started, answer these following questions:

•How much can you realistically sell next year?

•How much will you charge for your goods or services?
•How much will it cost to produce your product?
•How much are your operating expenses?
•Do you need to hire employees? If so, how many, and how much will you pay them?
•How much will you pay yourself?
•How much payroll tax and unemployment tax will you pay?
•How much money do you need to borrow, and how much will your monthly loan payments
be?
The answers to these questions will fill the form the basis of your budget and
forecast. If you've already written a business plan, you should know the answers to many of
these questions. If not, then this is a lot of information to try to budgeting.
In either case, answering these questions will help you determine two essential
things — your projected income and your expenses.
Ex : Foster Company - Sales Budget

The sales budget is the starting point in preparing the master budget, since
estimated sales volume influences nearly all other items appearing throughout the
master budget. The sales budget should show total sales in quantity and value .
The expected total sales can be break-even or target income sales or
projected sales. It may be analyzed further by product, by customer, and, of course
by seasonal pattern of expected sales.
 Sales Budget usually comes along with Schedule of
Expected Cash Collection from credit sales, which will be used for
cash budgeting (later on), and here is the cash collection schedule:
Walk through problem – Sales Budget
At January 1, 2018, Arrant, Inc. had 1,100 step stools on hand. Its policy is to maintain an ending inventory equal to
15% of units needed for the next month’s sales. Arrant Co. estimates it will sell 8,000 stools during the first month of
2018 with a 5% increase in sales each subsequent month. Each stool is sold for $16. Prepare a sales budget for the
March of 2018.
Solution
Because sales is an independently generated amount that is not based on the number of units in inventory, much of
the inventory information provided in this problem is irrelevant for the sales budget. You have been provided the sales
in units for January.
Sales during February will be 5% larger than January:
February sales in units = 8,000 x 105% = 8,400 units

Sales for March are expected to be another 5% more than February sales.
The sales for March are expected to be:
March sales in units = 8,400 x 105% = 8,820 units

Only amounts for future periods should be included in budgets. Prior period amounts are never displayed
because they are historical amounts, and by definition, a budget is an estimate of future activity. Every budget should
begin with a standard, three-line statement heading which includes the company name, the name of the budget, and
the time period it covers. The sales budget will appear as follows:
Sales budget form:

Arrant. Inc.
Sales Budget
Month Ending in March 31, 2018

Sales In Units 8,820

Selling Price per unit $ 16
Budgeted Sales Revenue $141,120