Application: Human Resources

Setup Item: Budget

Setting Up Budgets................................................................................................................................1

Reviewing and Renaming Period Types .............................................................................................2

Defining Calendars ...............................................................................................................................2

Defining Human Resource Budgets ....................................................................................................4

Entering Actual Values Against Budgets............................................................................................6

Setting Up Budgets

To set up a human resource budget:

1. Define values for the Lookup Type BUDGET_MEASUREMENT_TYPE in the Lookups

window. (See HRMS Lookup Types and Values Setup.doc.)
2. Review the period types defined on the system. You can rename them to match the names you
use in your enterprise.

3. Define calendars to determine the start date and period type of your budgets.

4. Define your budgets.

Reviewing and Renaming Period Types

Budgetary calendars and payroll calendars are based on a period, such as a Quarter or a Year. Standard
period types are seeded with the system. If you want to use a different name for a period type, enter the
name in the Period Types window.

You cannot remove the names that are already defined, but you can insert a new record and select the
appropriate Number Per Year.

Defining Calendars

You can define calendars for human resource budgets in the Budgetary Calendar window.

Navigator: US HR Manager
Navigate To: Work Structures>Budget Calendar

To define a budgetary calendar:

1. Enter the name, and start date for your calendar.

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.

2. Select a period type. If you select Semi-monthly, enter a value between 1 and 28 in the
Midpoint Offset field to determine the start date of the second time period each month. For
example, if you enter the value 15, the second time period each month begins on the 16th.

3. Save the calendar.

The system automatically creates the time period details. You can alter the default names for
each time period.

4. If you want to add years to, or delete years from, the end of the calendar, choose the Change
Calendar button.
5. When you have defined your calendars, you are ready to define your budgets.

A Monthly Budget has been created as an example. Others can be created as needed.

Defining Human Resource Budgets

You define human resource budgets in the Budget window.

During the time period of the budget, it may be necessary to adjust the budget values as a result of
organizational or financial change. You can create multiple versions of a single budget for comparison
purposes.
Navigate To: Work Structures>Budget

To define a budget:

1. Enter the name of the budget, and select a measurement type, calendar, and period type from
the LOV. Save the budget.

2. Enter a version number and start date for this budget version. You can create multiple versions
in order to maintain historical budget information. Save your work.

3. Under Budget Element, choose the level of the Organization you want your budget to represent.
Alternatively, choose the Job and or Grade. Save your work.

You can enter any combination of organization, job, position, and grade. You must select a
value for at least one of the fields.

4. In the Budget Values region, pick the date or range of dates for the budget. Enter a value that
represents the budgeted amount, i.e. Date From – 01-JAN-1998; DateTo - 31-DEC-1998; 4 -
Value = # of employees budgeted for that period. The system will look at any openings and
calculate the amount over or under as well as a variance.

5. Select other time periods for this budget element, as you require, and enter your budget values.
Save your values.

6. Repeat steps 3 and 4 as necessary for other budget elements. Save your work.
Entering Actual Values Against Budgets

You can monitor human resource budgets by comparing the budget values with actual values derived
from employee assignments. In the calculation of actual values, an assignment does not always count
as one. For example, if an assignment is part-time, it should count as less than one for a Full Time
Equivalent type of budget. At the Business Group level, you can enter the default value of an
assignment for each budget type. Then you can override the default for particular assignments in the
Assignment Budget Values window.

To override the default for an assignment:

 Select a budget type in the Units field and enter the value of the assignment for this budget in
the Value field.

Attention: If you do not enter a default value at the Business Group level, you must be careful to enter a
value for every assignment. If there is no value entered in the Assignment Budget Values window, that
assignment is not counted when calculating actual values for the budget.