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Don Driggs BOSS Corporation Training Session: All Those Budget Entry and Maintenance Options Abstract: There are many ways to prepare, enter, and update budget data. The first half of this session will present tips and techniques regarding budget organizations and yearend maintenance and is directed to all interested in budget processes. It will also demo nstrate how to use ADI to download, maintain and upload budget data. The second half of this paper will demonstrate the use of the Public Sector Budgeting module to prepare a budget.
The focus of the first half of this presentation is to discuss and demonstrate features and tools to upload and maintain a budget. It is not necessarily how to discuss how to prepare a budget although several Oracle and non-Oracle budget preparation tools will be mentioned. In the second half of this session I will demonstrate the creation of a budget using Public Sector Budgeting. Though the Oracle General Ledger is a great tool for budget reporting, I don’t suggest using the general ledger as a tool to preparing the budget. There are, however, a number of issues involving the general ledger and budgets. How does the Oracle GL define a Budget? Can I have more than one budget per set of books? What are Budget Journals and do I need to use them? What is the purpose of a Master Budget? What is the purpose of a Budget Organization? How do Budget Organizations fit in with Budgets? How do I freeze my budget? Can I freeze just a portion of my budget? Can I password protect the budget? What general ledger features use the budget amounts? What’s the difference between the GL_Interface and the GL_Budget_Interface? Are there other tools available to prepare a budget?
How does the Oracle GL define a Budget? A budget is an estimate of projected financial and operating results. Oracle GL enables you to compare actual results with the projected results and to control expenditures against the estimates. Oracle gives you a variety of tools to create, upload, and maintain your budgets. When you enter or update financial data in a budget you will identify a budget organization. If you are referencing budget data as in the case of a report or a procedure such as MassAllocations, you do not refer to a budget organization. To create a budget in Oracle use a GL responsibility and navigate to Budgets > Define > Budget
Budget and click on the Open Next Year button. This will launch a concurrent request that creates the budget. Can I have more than one budget per set of books? Yes, you may want to create several budgets. You may want to use different versions of a year’s budget for reporting purposes.
Should you create multiple budgets? Avoid creating multiple budgets unless they span different time periods or have very distinct reporting requirements. Use Budget Organizations to segregate budgets that are naturally divided by groups of accounts. Should you define a new budget every year? No, I can’t think of any good reason to define a new budget every year. I recommend using the same budget definition year after year. There are some distinct advantages to using the same budget every year. Features such as FSG’s, allocations, and others that use or refer to the budget do not need to be adjusted every year to capture the values in the new budget. To open periods for the new year in a budget, navigate to the Define Budget form and query up the budget. Change the Last Period to the last period of the new year. Save the record and the system will launch a concurrent request to validate the new periods for the budget. This only works if the last period originally used was indeed the last period of the calendar. If you have Adjustment Periods in yo ur calendar and if they are defined as shown below, then be sure you enter ADJ-01 as the Budget’s last period. Dec-01 Adj-01 01-Dec-2002 30-Dec-2002 31-Dec-2002 31-Dec-2002
What are Budget Journals and do I need to use them? This is a feature used mainly by public sector organizations. Enabling this feature says that you will only update your budget using budget journals and will use the features and controls of journal entry for entering and updating budget data. Most commercial organizations don’t need that kind of control to maintain their budget. Public sector organizations need the controls found in budget journals because the budget is a regulatory tool. Budget transfers are frequent but budget additions usually require amendments with board le vel approval. What is the purpose of a Master Budget? Use a Master Budget if you want to track your budget amounts against a control budget. You can choose any budget in your set of books as the master budget but it must have the same period range. What is the purpose of a Budget Organization? Budget Organizations group and validate accounts for budget processes. In practice, the main purpose for using Budget Organizations is to define budget security. If access to budget data is not important then you only need one budget organization. To use a budget, you must create at least one budget organization. You should create multiple budget organizations if; • Access to budget data needs to be restricted by divisions, departments, or any other organizational means. • You want to freeze pieces of a budget but not all of it. You can freeze a budget organization effectively restricting budget updates to accounts that are within the range of accounts of the frozen organization.
.• • You use budgetary controls such as funds checking at the detail account code combination level and different levels of control are needed for different ranges of accounts. To create a budget organization navigate to Budgets > Define > Organization. Budget Organization Click on the Ranges button to enter or view the account ranges for a budget organization. Most public sector institutions create a budget organization to match their various funds (balancing segments) to establish some control in the budget transfer process. It is not common to transfer money from one fund to another. Budget journals limit the use of accounts to those within a given budget organization so inadvertent transfers from one fund to another can’t occur.
Any and all budgets you create will work with the same set of budget organizations. How do I freeze my budget? Once you have finished loading your budget and you consider it final. How do Budget Organizations fit in with Budgets? Budget Organizations are independent of Budgets. query the budget and change the Status. Any accounts you use must be within the account range assigned to that budget organization. You can freeze the budget by navigating to Budget > Freeze. . To enter or update amounts in a budget you will first identify the budget organization. Some functions that allow you to change budget amount do not leave audit trails so it is a good idea to freeze it. Every account that will have budget amounts must be assigned to a budget organization. you should freeze it to prevent unauthorized changes to the budget.Budget Organization Account Ranges You cannot create budget organizations with overlapping account ranges.
. If you want the budget to remain open you can freeze a budget organization that in effect freezes any updates to the accounts assigned to that budget organization.Freeze Budgets Can I freeze just a portion of my budget? Yes.
In the Budget Organization form. Anytime anyone inquires or changes budget data pertaining to that organization. just click on the Set Password button and enter a password. If you wish.Freeze Budget Organization Note the difference in this screen shot above. he or she will have to enter the password to gain access to that data. the Status in the second screen shot is Open and the Budget Organization is marked Frozen. you can password protect a budget organization. • Financial Statement Generator • MassAllocations • Recurring Journals • Account Inquiries • Summary Accounts • Consolidations • Foreign Currencies • Budgetary Control . Can I password protect my budget? Yes. What General Ledger features use the budget amounts? Some of the General Ledger features that take advantage of budget data or at least have the ability to refer to it are.
The GL_Budget_Interface is ideal for uploading data from a spreadsheet and was developed with that function in mind. • The budget organization is not frozen. you can navigate to the budget organization form and click on the Maintain button. • The account is assigned to a budget organization. How often you do this depends on the frequency with which accounts are created and how they are used in the budget.Maintain Budget Organization concurrent process. Oracle General Ledger can upload final budgets from any of these tools using the GL_Interface table or the GL_Budget_Interface table. run the Budget Upload program to enter the budget to your accounts. There will be one transaction for each account for each period. and others that have applications dedicated to the budget preparation process. You should use the GL_Interface table if you want to handle your budget upload like a journal entry. Alternatively. submit the Journal Import program to create a journal entry that you can then post to update your accounts. Periodically you must run the Program . they are not automatically assigned to a budget organization even if they fall into the range of an organization’s accounts. • The budget year is open. Are there other tools available to prepare a budget? There are several Oracle tools available such as • Application Desktop Integrator • Oracle Financial Analyzer • Public Sector Budgeting There are many third party tools such as Hyperion. Comshare. . and controls of the Journal Import process to validate your data. You must do this for each budget organization. The budget upload checks to make sure that the following conditions are true.Note that if you define a new budget with each year. Once loaded. The decision to use the GL_Interface table or the GL_Budget_Interface table to upload transactions depends on the state of the data to be uploaded. What’s the difference between the GL_Interface and the GL_Budget_Interface and which should I use? Use either of these tables to upload data from an outside budget preparation tool whether that tool is an Oracle tool or from a third party. If your data is formatted to have one row for each account with an amount of every period then you should use the GL_Budget_Interface table. edits. After loading the transactions into the GL_Interface table. • The budget is not frozen. What is the purpose Maintain Budget Organization concurrent request? When you create new account code combinations or when dynamic insertion creates new account code combinations. • The budget entry type for the account is entered. You will have the features. This process finds and assigns all account code combinations that belong to the budget organization. you have to adjust these features to accommodate the new budget. Navigate to Budgets > Enter > Upload to submit this program.
Launch ADI 2. Select . 1. Paper Title Using Business Intelligence with Oracle's E-Business Suite Streamlining the Budgeting Process – A Case Study Installing the OFA Single Sign-On Functionality Oracle Financial Analyzer 11i plus (6.Some recent OAUG conference papers discussing these third party budgeting options are. • Review and Analyze Budget and Actual Data • Enter Budget Data • Upload Budget Transactions The steps to create a budget worksheet are.2) new features and Oracle Financial Analyzer futures 21st Century Planning and Budgeting on Oracle Author David Fuston Lynda Dunn Chad Nester Neville Swan Brian Rogers Conference Fall 2001 Asia Pacific 2000 Fall 2001 Europe 2001 Asia Pacific 2000 Application Desktop Integrator The Application Desktop Integrator (ADI) is an interface between Oracle General Ledger and Microsoft Excel. One of the more useful features of ADI is to upload new or revised budget data from Excel and to download existing budget data from the GL to Excel. You can upload journals or download reports. Create a budget worksheet from which you can. These features are managed by the Budget Wizard. With it you can move data between the two applications quite easily.3. Click on the General Ledger Icon 3. Use the Budget Wizard of ADI to.
accounts and to include actuals or to only present budget data. .Use the Create Budget Worksheet to focus the budget worksheet to specific time periods.
finalize the entries in the worksheet. then. Use the General Ledger icon. 1. 2.If you want to upload the budget data to the General Ledger. Select Upload to Interface .
The steps to prepare a line. Manage worksheets III. I. • It takes advantage of workflow to notify budget managers of worksheet actions. • It creates line. Some of the features of PSB are.Public Sector Budgeting Public Sector Budgeting (PSB) is a budget preparation tool originally designed to assist public sector organizations in their budget preparation and management cycle. The line item features are sufficient to produce. In addition to preparing budgets in terms of dollars it has the unique feature of preparing a position budget and of using the position budget to calculate employee related costs for the budget. • It allows budget managers to prepare their worksheets either on. Upload the budget to the general ledger. You do not need to use the position budgeting features of PSB in order to prepare a budget. and Labor Distribution applications to prepare a baseline budget and can update these same applications when the budget is finished. distribute and update budget worksheets. Commercial enterprises theoretically can use Public Sector Budgeting to prepare their budgets. Review line item setups II.item budgets and can create position worksheets.line Excel worksheets. • Its top.line or through off. • It works with Oracle Financial Analyzer and Discoverer to produce budget reports. • It secures access to the worksheets to authorized users. .level and parent budget worksheets constantly reflect the latest changes in all the worksheets. • It easily integrates data from the General Ledger.item budget using PSB are. • It allows for Bottom-Up budgeting. the Human Resources.
item Budgeting Profile Options Required Required Optional Required Required Optional Optional Required Required Optional Optional . Review Line Item Setups These setups were probably completed during the initial setup but should be reviewed every budget year and modified as necessary. Setup Steps 26 27 28 29 30 31 32 33 34 35 36 Complete PSB Line Item Budgeting Setups Define Budget Year Types Define Budget Calendar Define Standard Budget Items Setup General Ledger Interfaces Setup General Ledger Budget Sets Define Global Account Sets Define Budget Group Categories Define Budget Stages Setup Budget Groups And Security Define Budget Review Groups And Budget Review Group Rules For Account Sets Set Line. The PSB setup steps that should be reviewed and modified. You will at least need to create a new budget year calendar.I. These actions generally are one-time in nature. if necessary every budget cycle are. Previous setup steps are actions performed in Human Resources and other applications.
Budget Year Types Setup > Options > Year Types Budget Year Types Budget Year Types create the structure for the budget calendar. and encumbrance data. actual. The Proposed Year identifies a year for which a budget will be developed. . Prior Year and Current Year types can capture historical budget.
Define multiple years (prior. Semi. or Year. . Quarter. The prior and current years must have a Period Distribution of Month.Budget Calendar Setup > Options > Calendars Budget Calendar Create one calendar for a budget cycle. current. Note: If you prepare an annual budget and don’t distribute it to any periods. and proposed) to the calendar.Annual. The proposed years can have a period distribution of Month. then set the Period Distribution to Year.
.General Ledger Interfaces Setup > Account > General Ledger Interfaces General Ledger Interfaces Use the General Ledger Interface to identify summary account templates you want PSB to recognize. Also use it to identify the fund balance account. Use this account to automatically offset any differences between revenue and expense accounts so that the budget journal will be balanced.
The posting type allows you to indicate whether all changes or only permanent changes should be posted to the general ledger. . The Start and End Periods identify the time period from which budget data will be extracted from that budget. If you use multiple budgets. If you have multiple budgets in the general ledger.General Ledger Budget Sets Setup > Account > GL Budget Sets General Ledger Budget Sets The GL Budget Set identifies the general ledger budget this worksheet will use to obtain historical and current budget data. the system validates that for a given period there is no overlap of account numbers in the budget. you can assign one or all or any of them to a given PSB worksheet. You also need to assign at least one global or local account set to a GL Budget Set.
And you use account sets to when you define how you will allocate your budget to the various periods. • Budget Groups • Budget Review Group Rules • Parameters • Constraints • Period Allocation Rules When you create a budget group you will assign a range of accounts for which that budget group manager will have budget responsibility.Global and Local Account Sets Setup > Options > Account/Position Sets Account and Position Sets Group accounts with similar characteristics into account sets. Some of the features that use accounts sets are. You apply budget parameters and constraints against account sets. That range of accounts becomes an account set. .
This will allow the fire and police department to review. Assign the Public Safety budget group to the Organization level and the fire and police budget groups to the Department level. For example the director of Public Safety has budget authority over the fire and police departments. Use them to distribute and approve worksheets.Budget Group Categories Setup > Budget Hierarchy > Budget Group Categories The Budget Categories represent the various levels of authority in your organization. All modifications done at the lower levels must be approved by someone in a higher level before consolidating the budget. . modify and approve their budgets while giving the Public Safety director the same access.
you will be creating a snapshot or a separate version of the budget when it reaches that stage. then you only need one budget stage. If you only need to work with the latest version of a budget. You can modify worksheets at any stage including worksheets of previous stages. .Budget Stages Setup > Options > Stages Budget Stages How many versions of a budget do you need? Do you need to track budget numbers at various stages of development? When you create a budget stage.
In addition. GL Set of Books. reviewing and approving a budget. and business group. position account set. and categories. You can optionally include a long description for each budget group.Budget Hierarchy Setup > Budget Hierarchy > Budget Groups Budget Hierarchy Create a budget group and hierarchy for each individual organization responsible for editing. budget group category set. you will need to enter the following information for the Top Level group. Budget worksheets are prepared and distributed to budget groups within the budget hierarchy. responsibility. notifiers. account set. . You will need to define the following information for each group. Assign each organization its appropriate place in a hierarchical order. non-position account set.
Move to the Next Stage e. Freeze c. Modify Worksheets 1. Create Worksheet Procedures 1. Distribute Worksheet C. 2. Unfreeze d. Define Worksheet Distribution Rules 2. A. 4. Distribute Worksheet Procedures 1.II. Worksheet Operations a. Merge g. Define the Data Selection 2. Worksheet Management The process of managing worksheets can be divided into the Create. 3. Submit . Distribute and Modify procedures. Create Projection Parameters Define Constraints Define Period Allocation Rules Define Worksheets B. Validate Budget Constraints b. Copy f.
The details of the parameters can be defined by clicking on the formulas button. Create Projection Parameters Worksheet > Parameters Projection Parameters You Parameter Rules with global or local account sets to apply parameters to existing budget or actual data and create projected or estimated budget amounts.A. See the following page for an example. Note: You can define all the various parameters to be used in your worksheets in one parameter set by defining multiple parameters as shown here. Create Worksheet Procedures 1. Progress S&L Parameters Travel Expenses (55530 – 55560) Office Supplies (56100 – 56400) Other Expenses (53000 – 54000) Decrease PY Actuals by 10% Increase CY Budget by 2% Increase CY Budget by 3% .
.Parameter Formula After clicking on the formula button. As you can see there is a lot of flexibility in defining your formulas. They can be simple or very complex. At least one projection parameter is required to create a worksheet. Parameter Formula This formula is to project office supplies expense. The intent of this formula is to increase the proposed budget by 2% over the current year’s budget. the parameter form will open allowing you to enter the details of the formula. Note the object codes in the account set used.
2. See the example on the following page. Create Constraint Rules Worksheet > Constraints Constraint Rule Set Use Constraint Rule Sets to notify users of violations of specific conditions. Define the constraint rule and then create the details after clicking on the Formulas button. You can apply constraint rules to account sets or position sets. .
. This rule will not allow the budget of the Admin department to exceed $250.000.Constraint Formula Constraint Formula This constraint rule will notify the individuals identified in the Notifiers tab of the budget group to which this constraint rule is applied.
then PSB will distribute the amounts evenly across all the periods. Create Period Allocation Rule Sets Worksheet > Period Allocation Period Allocation Rule Set Use Period Allocation Rules to distribute an annual budget to its various periods. .3. Note: If in your calendar you defined Year as the Period Distribution value. If you don’t define a period allocation rule. this step allows you to assign greater proportions of a budget to any period or periods and lesser portions to other periods. Though not required. you will have no need to create any period allocation rules.
Period Allocations Period Percentage Allocations The number of periods to be allocated are defined by the number of periods created in the budget calendar. You must separately enter the percentages for each period type. Note: All the Allocation Percentages must add up to 100. .
4. When finished. You will also need to define if the Distribution Type: Distributed or Non-Distributed. This will not recalculate new estimates. Parameter Set. Note: Use the Update GL Balances button to update the existing worksheets with the changes of actual and budget amounts in the gene ral ledger. click on the Create Worksheet button. the master worksheet and enter the Budget Calendar. This will launch a concurrent request that will spawn numerous requests and prepare the worksheet for the next step – Distribution. and Allocation Rule Set. Constraint Set. Define Worksheet Worksheet > Define Define this worksheet. . the Stage Set and the Budget Group Be sure and go to the General Ledger tab and enter the GL Extract Cutoff date and the Budget Set Name.
. When you click on the Distribute button you will be asked to include instructions. Worksheet > Distribute Distribute Worksheet Use this form to create the sub worksheets and distribute them to the various budget managers.B. define the rules for distributing the worksheet and then distribute it. These are optional but will be seen by the budget managers when they open the worksheet. Create a new distribution rule or use an existing rule determine what worksheets were created and distributed. Note the Move Down and Move Up buttons. Distribute Worksheet First.
Modify Worksheets 1. Data Selection Close the form and click on Line Items and you will see and be able to modify your worksheet. Navigating to Worksheet > Modify he opens his worksheet and he needs to identify the data selection as shown below. Define the data to be selected for the worksheet. To recalculate estimates re-enter the data selection criteria . The budget manager of the Fire Department logs in and will see a notification of the new worksheet on his homepage. Update GL Balances: Updates the balances but does not recalculate proposed amounts.C.
Below is the worksheet for the Fire Department. verify the parameter calculations and change the 2003-2004 Estimate amounts as necessary. Worksheet for Fire Department . Review the amounts.Worksheet The worksheet is now ready for review and update.
Previous stages can be frozen if no changes should be allowed. If the Public Safety Budget Manager wants to update the Fire Department worksheet. navigate to Worksheet > Operations. The worksheet is frozen and the system prevents any more updates to the worksheet unless it is first unfrozen. PSB freezes the worksheet and sends a notification to the Public Safety Budget Manager that this action has taken place. Unfreeze the Worksheet No changes can be made to any worksheets unless all of the parent worksheets are unfrozen. Submit the Worksheet When finished modifying the worksheet submit it for review. move a worksheet to the next stage or submit a worksheet for approval. To use these operations. . make the changes and then submit it to the Progress Budget Manager. When the Progress Budget Manager moves the worksheets to the next stage.2. When the Fire Department Budget Manager submits the worksheet. Make any necessary modifications to the budget. Copy and Merge the Worksheet The system allows you to make a copy of a worksheet to manipulate data and test various scenarios. A notification will be sent to the person designated in the budget group in the next step up the budget hierarchy. Worksheet Operations Validate Budget Constraints You can manually validate worksheets with this process. Use the merge process to place the data in this worksheet into the original worksheet. Distribute the worksheets again to unfreeze all of them. The Distribute process will unfreeze the child worksheets in one process. These changes are not reflected in any of the parent worksheets. the data selection reflects the choice of the new budget stage and creates the second version of the budget worksheet. he must first unfreeze the worksheet. PSB automatically validates worksheet constraints when you freeze or unfreeze a worksheet. Move the Worksheet to the Next Stage This will allow worksheets to be managed at the next stage as well as the previous stages.
2. III. Run the Transfer Budget Journals process The following prerequisites must be met in order to create budget journals. 4. When you are satisfied with the results. use the fo llowing PSB procedures. 1. run it in the Final mode. You cannot post to adjusting periods. freeze and unfreeze worksheets. to move them to the next budget stage and to submit the worksheet for approval. 2. Run the Create GL Budget Journals process. 3. If you elect to balance the budget journal. The periods for the budget must be defined and opened. The funding budget year in the general ledger must be open. 1. to copy and merge worksheets. Create Budget Entries for the General Ledger When you are ready to post the budget to the general ledger. to validate constraints.Worksheet Operations Use the Worksheet Operations form to submit worksheets for approval by reviewers. you must define a fund balance account in the GL Interfaces form and mark the Template box. . Run in the Trial mode first and review the Budget Journal Edit Report.
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