See: Human Resource Budgets
Most enterprises need to add salary estimates to these headcount budgets to provide salary budgets. Oracle Human Resources provides you with the key information you require to define your salary budgets:
Note: The calculation of actual salary values happens during the payroll run. To help you compare planned versus actual spending, Oracle Payroll provides the following information:
Starting from the position definition, you can extract the list of valid grades and the grade rate values for each of these grades. If you use grade scales, you can use the midpoint value from the range defined for each grade.
To calculate the salary budget for each position, you multiply the position headcount by one of the values for the grade. Typically you would use the value for the middle grade. However, you might choose the lowest grade if you are making entry-level assignments to new positions.
When you have established the relationship between these various items in the database, you can automate the budgeting through the creation of a standard reporting view, using SQL*Plus.
Salary budgets are typically set for each organization, based on a headcount budget for jobs and organizations. The budget for each organization is calculated from the midpoint grade rate value for the valid grades for each job multiplied by the planned headcount for each organization and job combination.
Current expenditure in each organization is used as the starting point for budgeting. This cost is projected on the basis of plans for expansion or reduction, with some inflationary factor added.
One approach to budgeting in this environment is to download current salary values from Oracle Human Resources to a spreadsheet. You can use Oracle Glue to create an interface from Oracle Human Resources to your spreadsheet system. The spreadsheet facilities are well suited to the application of various percentages to try out salary and headcount change proposals.