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Position Budgeting
TABLE OF CONTENTS
Introduction......................................................................................... 3
Position Budgeting Cycle .................................................................. 3
1.1 Verify Setup .............................................................................. 3
1.2 Budget Details Setup.................................................................. 3
2.1 Run Budget Period Position Detail Report.................................... 4
3.1 Run Budget GL Posting .............................................................. 4
4.1 Review Process Log ................................................................... 4
5.1 HR Data Maintenance ............................................................... 4
6.1 Run Calculate Commitment ........................................................ 4
6.2 Review Process Log ................................................................... 4
6.2.1 Run Management Reports ........................................................ 5
6.3 Run Commitment GL Posting ...................................................... 5
6.4 Review Process Log ................................................................... 5
6.5 Run, review, analyze reports ....................................................... 5
7.1 Relieve Commitments Request Set................................................ 5
7.2 Review Process Log ................................................................... 5
Budget Calendar .............................................................................. 7
Figure 2 Budget Calendar Form ......................................................... 7
Budget Sets ..................................................................................... 8
Figure 3 Budget Set Form ................................................................. 8
Budget Characteristics ..................................................................... 9
Budget Characteristics Tab ................................................................... 9
Figure 4 Budget Characteristics Form ............................................... 10
Elements Tab .................................................................................. 11
GL Segment Map Tab ........................................................................ 11
Budget Details ................................................................................ 12
Figure 5 Budget Details Form .......................................................... 12
Figure 6 Position Form ................................................................... 16
Budget Period Position Detail Report.............................................. 16
Figure 7 Budget Period Position Detail Report Output ......................... 16
Budget GL Posting ......................................................................... 18
Figure 8 Budget GL Posting ............................................................ 18
Figure 9 Transfer to GL/Grants ........................................................ 19
Position Budgeting
Introduction
Oracles position budgeting allows a standard level of control to prepare
budgets, post commitments to General Ledger for budgeted entities (such as,
positions), and analyze data from control budget reports.
This paper provides an outline of Oracles position budgeting with the basics. If
you require more advanced control, you will need to refer to the Guide in
Metalink Note: 224961.1 Oracle HRMS Position Control and Budgeting.
Position Budgeting Cycle
The position budgeting cycle consists of the setup of the budget fundamentals,
budget preparation, and running of processes & reports.
Please refer to Figure 1 on page 6 for the diagram associated with the cycle steps
below:
1.1 Verify Setup
The first step in the budgeting cycle is to verify your setups. The Budget
Calendar, Characteristics and Version are setup for the fiscal year. Usually the
budget calendar does not have to be setup each fiscal year, you may use the
same budget calendar, but you need to verify that the fiscal year exists in the
calendar. Please refer to the Budget Calendar section page 7 Figure 2 for details
on how to setup the calendar. The budget sets are setup to link the elements in
payroll to the defined budget. Please refer to the Budget Sets section on page 8
Figure 3. The characteristics usually would be setup each fiscal year so that you
may have the option of changing characteristics in the future. Please refer to the
Budget Characteristics section page 9 Figure 4 to setup the characteristics and
the version of the budget.
1.2 Budget Details Setup
The second step in the budgeting cycle is to setup the budget details for the
fiscal year. The budget details will be the detailed dollar amounts and
measurements for each position within your budget and the funding sources.
Your budget characteristics unit of measurement setup determines the budget
measurements. This is the step that links your GL account code combinations to
the position and the measurement values to those accounts for each period
within your budget.
Please refer to the Budget Details section page 12 Figure 5 or 6 for steps to enter
the budget version, the positions, the measurement values and the funding
distributions for your budget.
2.1 Run Budget Period Position Detail Report
The next step after your setups are complete is to run the Budget Period Position
Detail Report to verify your budget details are complete. Please refer to Budget
Period Position Detail Report section page 16 Figure 7.
Note: At this point the report will only list the budgeted amounts in the first
column because within your cycle you have only created budget amounts.
Commitments will be reported when employees are assigned to the budgeted
entities in the cycle steps to follow within the budget cycle.
3.1 Run Budget GL Posting
The next step after you have verified your budget is to run the Budget GL
Posting. Please refer to Budget GL Posting section page 18 Figure 8 for details
on how to run this process.
4.1 Review Process Log
After running the posting to GL in validate mode, check the process log to
verify it will post without errors. Please refer to Process Log section page 19
Figure 10 and 11 for details on how to use the process log. Once you have
corrected any errors within the process log, you would run the Budget GL
Posting without validation. The journals would then be imported and posted to
the GL.
5.1 HR Data Maintenance
During the fiscal year, HR data maintenance is occurring on the person
assignment records on a regular basis. The type of data entries that impact the
budgeting cycle would be assigning employees to the budgeted entities
(position), running payrolls and salary changes. For example, a person was
hired into the 1.IT Director.100 position on 01-Jan-2009 with a salary of
$240,000.00 and a payroll was run for $20,000.00 month-end 31-Jan-2009.
Once the commitments are calculated the above would impact those values.
6.1 Run Calculate Commitment
The Calculate Commitment process should be run periodically to capture the
HR Data Maintenance events.
Please refer to the Calculate Commitment section on page 21 Figure 13 for
details of this process and how to run this process.
6.2 Review Process Log
After running the Calculate Commitment process, the process log should be
reviewed for any errors.
Select Budget Commitment from the View drop box in the Process Log
window.
Position Budgeting
5.1 HR Data
Maintenance
1.2 Setup
Budget Details
for the Fiscal
Year
Yes
Monthly
7.1 Request
Set =Relieve
Commitments
7.2 Review
Process
Log
No
No
4.1 Review
Process Log
No
6.1 Run
Calculate
Commitment
Yes
6.3 Run
Commitment
GL Posting
6.4 Review
Process Log
Error(s)
Yes
Error(s)
Reports
3.1 Post
Budget to GL
(Validate)
Yes
Error(s)
6.2 Review
Process Log
No
6.2.1
Run Other
Management
Reports for
the period
Budget Calendar
The Budget Calendar is used to define the frequency of your budget periods.
The calendar will be attached to your budget and used in the calculation
processes for commitments. Figure 2 shows the form used to setup your budget
periods. The Start Date should be the date for your first budget you would like
to setup. Check that the start date year is early enough to cope with your
historic data. Once you define the calendar, you cannot change the start date.
There is no need to create a calendar for each budget year. This calendar need
only be defined once, and the years can be added to the existing calendar by
clicking the Change Calendar button. The period type is used to determine the
From and To dates for each period in your budget. The period type is
usually the period type of your General Ledger budget due to transferring to the
GL.
Figure 2 Budget Calendar Form
Navigation: Work Structures>Budget>Budget Calendar
Budget Sets
The Budget Set window is used to link pay elements to the defined budget and
to compare a budgeted value for an element to the run result recorded for that
element.
Figure 3 below shows a basic budget set to compare the regular salary pay
element to your budget.
In this example there is no default Funding Source (GL Account Code
Combination) for this element.
Figure 3 Budget Set Form
Navigation: Work Structures>Budget>Budget Set
Budget Characteristics
The Budget Characteristics Window is used to define the properties of your
budget. Usually you would create this each fiscal year in case you decide at a
later date to change the properties used for your position budget.
The name usually includes the fiscal year of your budget if defining a budget for
each year. Select the calendar to be used for the budget to specify the periods to
be used in the budget. Select the GL budget to be used if transferring your
budget to the General Ledger. Check the Control Budget check box if this
budget is for control purposes, for example, position control.
Budget Characteristics Tab
The fiscal period region of the Budget Characteristics tab is where you define
the dates, currency, and default budget set. The From and To dates are used
with the budget calendar to define your period dates. In the example below, the
fiscal year FY09 is 01-Jan-2009 to 31-Dec-2009 with monthly periods. 01-Jan2009 to 31-Jan-2009 would be the first period of this budget. 01-Feb-2009 to
28-Feb-2009 would be the second period of this budget, and so on. Define the
currency for your budget. If you do not select a currency the default currency
for your business group is used.
Note: The list of primary entities is seeded
with the product and you cannot extend this
list.
The budget element region of the Budget Characteristics tab is where you define
the primary entity, budget style, organization hierarchy, starting organization
and valid grade required flag. The Primary Entity is the level at which you will
budget. The most common choice and lowest level is position. The budget
style will determine how the totals are allocated in the budget. Select Top
Down if you enter the total Allocated amount for each budget measurement unit
when you complete the budget. You can distribute the Allocated amount
between the line items in the budget version. Select Bottom Up if you do not
enter the total Allocated amount for each budget measurement when you
complete the budget. In this case, the application rolls up the value for all the
budgeted line items to create the total Allocated amount for the budget version.
Select an Organization hierarchy if your primary entity is position or
organization. The application displays the version of the organization hierarchy
in the Version field. Select the highest organization for which you are
budgeting in the Starting Organization field. If you want to limit the grades that
can be selected for budgeting to only those marked as valid for the associated
position or job, then check the Valid Grade Required check box.
The budget measurement region of the Budget Characteristics tab is where you
select the unit of measurements you will be defining in your budget. Oracle
HRMS delivers the following seeded measurement units: Money, Hours,
Headcount, Full Time Equivalent, and Percent Full Time Equivalent. You
cannot extend these units, but you can use the User Types and Statuses window
to copy and rename a unit by selecting the BUDGET_MEASUREMENT_TYPE
lookup value. Select an aggregation method in the Aggregate field to control
how the application rolls up budget totals by budget period for each budget
measurement unit. Accumulate defines the total as the value accumulated in
the budget period. If you select Money as a budgeting unit, you must select
Accumulate as the aggregation method. Average defines the total as the average
value for the budget period. You typically use this method for non-monetary
units such as FTE or Headcount, where allocations can fluctuate widely from
one period to the next. Maximum defines the total as the maximum value for
the budget period.
Note:
Be sure to populate the Currency field
so that your actuals will display on the Budget Reports.
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Elements Tab
Note: If you define a budget element to track
both actuals and commitments (Type =
"Both"), you must specify Input Value as the
method. You can define the same element
twice (once for each Type) to specify a
different method for calculating commitments.
.
The elements tab of the Budget Characteristics window is where you define the
elements to be used to track actuals or commitment values for your budget. You
can compare your budgeted amounts to actual expenditures and projected
commitments for any fiscal period. In order to track actuals or commitments,
you must specify a method as part of your setup: You must specify an Input
Value to track actuals. You can choose to calculate commitments based on
Input Value, Salary Basis, or a FastFormula rule you define.
The GL segment map region of the Budget Characteristics tab is where you map
the general ledger accounting key flexfield segments to the cost allocation key
flexfield segments.
The application activates the Transfer to GL
check box automatically when you select the
budget in the GL Budget field.
You must select a GL budget in the GL Budget field to enable the GL Segment
Map tabbed region.
Note: There are setups within the GL that are required to select the GL Budget
in this form. You must setup a GL budget and the periods must be open.
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Budget Details
The Budget Details Window is used to define the details of your budget. Enter
the version from and to dates of your budget.
You may define the details of your budget in the budget details window, the
position window or if approvals are required use budget worksheets.
Please see the implementation guide or online help for using budget worksheets.
The implementation guide can be found with
Metalink Note: 224961.1 Oracle HRMS
Position Control and Budgeting, Page 2-20.
.
.
Figure 5 displays the budget details window setup. First you would enter the
budget version, then click Open button to enter the positions within your budget
and the measurements for each position. In this example, the units of
measurements chosen as budget characteristics were Money and FTE.
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Once you have entered those values for the position, click the Periods button,
then enter the values for each period. You define budget periods when you set
up your budget calendar. In this example, the fiscal period is 01-Jan-2009 to 31Jan-2009 with 12 monthly periods, such as, 01-Jan-2009 to 31-Jan-2009, 01Feb-2009 to 28-Feb-2009 and so on. The budgeted value of money for the
1.Staff Analyst.100 position for each period is 10,000.00 totaling for the entire
fiscal year of 120,000.00. The FTE for each month is 5 as is the total FTE for
the fiscal year. (Note: The Populate All button may be used to add all positions
to the budget.)
Click the Budget Sets tab for each period to select the budget set for this
position, in this example, the 1.Staff Analyst.100 position is a salaried position
and thus will use the Regular Salary budget set that links to the salary basis
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element of Regular Salary. Enter the percentage for each period and budget set
defined.
Click the Budget Set Distribution button to enter the distribution and funding
source for this budget within this period for the position.
Click the Funding Source tab to enter the GL account code combination for the
distribution of these funds. The cost allocation key flexfield will display, this
was mapped during the setup of the budget characteristics to the GL Accounting
Key Flexfield. Click OK after entering the codes and enter the distribution
percentage.
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This will be repeated for each period within your budget. Close the Funding
Distribution (Regular Salary) window to navigate to the next period. Click the
Next Period button, to repeat the steps of entering the distribution and funding
source. Notice the Start and End Dates at the top of the window in the figure
below.
Budgets on Positions -You may define the parts of the budget details setup in
the position form for each budget. Figure 6 shows the position Budgets tab with
the budget version, the periods entered, and the measurements entered. In this
example, the money and FTE values are entered for the 1.Staff Analyst.100
position.
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Effective Date enter the date by which you would like to report the
periods
Record Type select the record type for the report; the choices are All
Records or Records with Values
Reports on a budget you specify. Includes budgeted, actual, committed,
projected, and balance amounts for each position, per measurement unit and
budget period.
Note: Depending on what you have completed within the budget cycle, some of
the columns may not be populated. In the example report, Figure 7, only the
budget amounts are complete.
.
.
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You can also run the query below to check the funding sources for the
budget.
select haou.name organization
,pj.name job
,hapf.name positions
,pbv.version_number
,pbv.date_from budg_version_date_from
,pbv.date_to budg_version_date_to
,ptp.start_date period_start_date
,ptp.end_date period_end_date
,pbd.commitment_gl_status
,pbd.budget_unit1_value fte
,pbd.budget_unit2_value money
,pcak.concatenated_segments
from pqh_budgets pb
,pqh_budget_versions pbv
,pqh_budget_details pbd
,pqh_budget_periods pbp
,pqh_budget_sets pbs
,pqh_budget_elements pbe
,pqh_budget_fund_srcs pbfs
,hr_all_organization_units haou
,hr_all_positions_f hapf
,per_jobs pj
,pay_cost_allocation_keyflex pcak
,per_time_periods ptp
where pbv.budget_id = 5306
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"BudgetDetails
2009.xls"
Budget GL Posting
The Budget GL Posting process will post your budget to the General Ledger.
There are two ways to run the process, either as a concurrent request (Figure 8)
or within the Budget Details form (Figure 9).
The parameters for the process are as follows:
Budget Version select from the list of values the budget version you
would like to post to the GL
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Process Log
The Process Log displays information that can help you correct errors. The
View drop box lists all the processes viewable by the form. The Figure 10
example below displays the Budget GL Posting results. The budget versions
run will display by clicking on the plus sign ( + ) next to the process name.
Then by clicking the plus sign ( + ) next to your budget version will display the
details of your process. Note the stoplight will indicate whether there were any
errors. A green light means there were no errors and the process completed
successfully. A red light means there are errors to be displayed in details.
Continue to click the plus sign ( + ) and then click on the error to view the
message to the right of the log.
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In this example, the GL budget periods did not exist for the budget defined in
the budget characteristics. The GL periods needed to be opened for the periods
within this budget version of 01-Jan-09 to 31-Dec-09. (General Ledger Super
User>Setup>Open/Close)
Figure 11 Process Log
Navigation: Processes and Reports>Process Log
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Entity Type select from the list of values Grade, Job, Organization or
Position
Budget Version select from the list of values the budget version to
calculate for
Entity Name select from the list of values the entity name if you
would like to run for only one entity and not all; this parameter is not
required and is optional if left blank it will run for all entities
21
Frequency if you would like to override the calendar defined in the
budget characteristics for your budget version, select from the list of values
the frequency to use
22
,per_all_assignments_f paaf
,pay_element_types_f petf
,per_all_people_f papf
,hr_all_positions_f hapf
where pec.BUDGET_VERSION_ID =5306
and paaf.assignment_id = pec.ASSIGNMENT_ID
and petf.ELEMENT_TYPE_ID = pec.ELEMENT_TYPE_ID
and paaf.person_id = papf.person_id
and paaf.position_id = hapf.position_id
To see am example query results open imbedded spreadsheet below:
"BudgetCommitments
2009.xls"
The input budget version is broken into its detail positions. Positions have
assignments attached to them and these assignments are attached to element
types. The element types that should be taken into consideration for
commitment calculation are defined during the setup of the budget
characteristics.
The commitment value is calculated for the specified element types for an
assignment. The sum of the commitment for all assignments of a position will
give us the commitment for a position. The commitments of positions within a
budget version are summed to arrive at the commitment of the budget version.
After arriving at the budget version commitment as of the start date of each of
the smaller sub-periods, in the above case, as of Jan 1st, Feb 1st & Mar 1st,
these values are then summed up to arrive at the commitment amount for the
budget version for the entire commitment calculation period.
Commitment GL Posting
The Post GL Commitment process will post the commitment values calculated
to the General Ledger.
Figure 14 Commitment GL Posting
Navigation: Processes and Reports>Processes and Reports>Submit Processes and
Reports>Single Request
23
Budget Version select from the list of values the budget version to
post
Posting Period select from the list of values the posting period for
which you want to post, if left blank, the process will post for all periods within
your budget
24
There are delivered budget reports that can be run to view the results of the
budget cycle. Please see the implementation guide for details on other reports.
The Organizational Position Summary Report is one example of the delivered
reports that can be used to review and analyze the under or over budgeted
positions. This report provides summary budget information for a specified time
interval, for each position-controlled organization in your business group.
Budget Version select from the list of values the budget version to
calculate for
25
Posting Period select from the list of values the period within your
budget calendar you would like to post the relieve commitment values
Figure 15 Relieve Commitment Routine
Navigation: Processes and Reports>Processes and Reports>Submit Processes and
Reports>Single Request
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Position Budgeting
December 2006
Author: Wendy Kreihs
Contributing Authors: Nischal Sanghal
Copyright Oracle Corporation 1995
All Rights Reserved Printed in the U.S.A.
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only and the information herein is subject to change
without notice. Please report any errors herein to
Oracle Corporation. Oracle Corporation does not
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Copyright Oracle Corporation 1995
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