To define budget characteristics:You use the Budget Characteristics window to define the properties of a budget. Once you define the properties, use the Budget Worksheet or Budget Details window to make budget entries.
Use the Budget Characteristics window to:
Select the primary budget entity. You can choose job, position, grade, organization or a combination of these work structures.
Select the budget measurement units, for example money or headcount.
Define the fiscal period of the budget.
Indicate which budget elements you want to use for tracking actuals and commitments.
Map Cost Allocation flexfields to Oracle General Ledger account codes if you post the budget to Oracle General Ledger.
Note: The application freezes the budget characteristics once you create a budget worksheet or budget version for that budget.
To define budget characteristics:Enter the budget name and select a budget calendar.
Check the Control Budget check box if this budget is for control purposes, for example, position control.
Note: You can define only one control budget per budget measurement unit type within a period for a business group.
If this is a controlled budget, check the Transfer to Grants check box if you want to transfer budget information to the Oracle Grants management system.
Note: This check box is only displayed if you have Oracle Grants installed.
Choose the Budget Characteristics tab.
Enter the Fiscal Period for this budget in the From and To fields.
Note: You can enter allocations for budget periods within the fiscal period when you complete the budget worksheet.
Select the Currency of the budget. If you do not select a currency the default currency for your business group is used.
Optionally, select a default budget set from the list. Position users can use the information in the budget set to provide budget data at the element and funding source level when they create or update positions.
Select the Primary Entity of this budget, such as Position.
Select Open to use a combination of Job, Position, Grade, or Organization. You choose the Open entity more infrequently, typically for budgets migrated from earlier versions of Oracle HRMS (11.0 and later). If you choose the Open entity, you need to enter all line items manually (Populate All does not work). You cannot create a control budget using the Open entity, and Report Under Budgeted Entities will not work.
Note: The list of primary entities is seeded with the product and you cannot extend this list.
You must enter budget values in the worksheet for the primary entity. If you select position as the primary entity, you can limit the position to a position in a grade using the budget worksheet.
Select the Budget Style.
Select Top Down if you enter the total Allocated amount for each budget measurement unit when you complete the budget worksheet. 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 worksheet. 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 and you want to delegate the budget to managers in a organization hierarchy.
The application displays the version of the organization hierarchy in the Version field.
When creating a control budget you must mark the organization hierarchy for position control.
Note: If you do not select an organization hierarchy, the budget worksheet displays all positions and organizations in the business group.
Select the highest organization for which you are budgeting in the Starting Organization field if you select an organization hierarchy.
Note: You cannot enter budget values for any organizations in the organization hierarchy above the starting organization.
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.
See: Entering Valid Grades for a Job or Position
Note: If you save a budget as valid grade required, you cannot change it back to an all grade budget.
Select the first Budget Measurement Unit for which you are budgeting, such as money or headcount.
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.
Attention: Although it is theoretically possible to set up budgets that measure money, hours, headcount, and FTE for many combinations of entities, fiscal periods, and budget calendars, this approach does not reflect best practice. To achieve meaningful results in reports, Oracle recommends using a given measurement unit with a single entity, fiscal period, and budget calendar. This alignment is essential when you implement Workforce Intelligence reporting, such as Workforce Budget Management.
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.
Save your work.
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.
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.
You calculate commitments from the Concurrent Manager by running the Calculate Commitment batch process.
To define budget elements:Enter or query a budget in the Budget Characteristics window.
Choose the Elements tabbed region.
In the Type field, specify whether you want to use the element to track Actuals, Commitments, or Both.
In the Classification field, optionally select a payment classification from the list, such as Earnings, Supplemental Earnings, or Employer Liabilities.
Note: This field filters the Element list to display only those elements matching the selected classification. Since budgets track payments, do not select a deduction classification here.
In the Element field, select the element you want to use to track actuals and/or commitments.
If you selected Actuals or Both in the Type field, specify an Input Value to track the element.
If you selected Commitments or Both in the Type field, do one of the following to specify a calculation method:
Select an Input Value to the element, such as Amount or Pay Value.
Activate the Salary Basis check box.
Select a FastFormula.
Select a Default Frequency to specify the default unit of time for which you calculate commitments (day, week, month).
Optionally, enter an Overhead % to add a percentage of the commitment calculation result to the total commitment amount.
Save your work.
You can transfer a completed budget to Oracle General Ledger. To enable the transfer, map Oracle HRMS cost allocation flexfields to general ledger account codes.
Note: Budget sets enable you to link each budget element to multiple GL account codes. To account for multiple funding sources, attach budget sets to line items in your budget.
You transfer budget worksheets marked for transfer to GL automatically, when you apply the budget to the database. If you use Direct Budgeting (without routing), run the concurrent process Budget GL Posting.
See Posting a Budget to Oracle General Ledger as a Batch Process.
To map cost allocation flexfields to Oracle General Ledger Accounts:.Enter or query a budget in the Budget Characteristics window.
.Select a GL budget in the GL Budget field.
Note: The application activates the Transfer to GL check box automatically.
You must select a GL budget in the GL Budget field to enable the GL Segment Map tabbed region. The GL budget is empty, ready to receive budget data, because a counterpart with a GL Manager responsibility creates the budget for you.
If your budget originates in Oracle Public Sector Budgeting, then Public Sector Budgeting transfers the budget to GL and HRMS Control Budgeting transfers only commitments to GL. If this is the case, activate the Transfer only commitments to GL check box.
Choose the GL Segment Map tabbed region.
Select an HRMS Costing Segment for each corresponding GL Chart of Accounts segment.
When you post your budget, the funding source distribution percentages you specify per element in your budget sets enable the appropriate allocation amounts to display in GL, broken down by GL account codes.
See Setting Up an Oracle HRMS Budget for Transfer to Oracle General Ledger.
.Save your work.