To set up a planning unit hierarchy:
Select Administration, then Approvals, and then Planning Unit Hierarchy.
To create a new hierarchy, click Create.
To edit an existing hierarchy, select a planning unit hierarchy, and then click Edit.
In Hierarchy Name, provide the planning unit hierarchy name.
All to add all planning units to the approval process.
None to include no planning units in the approval process by default.
To add planning unit groups or individual planning units to the approval process, see Selecting Planning Unit Hierarchy Members.
Custom to define which planning units to include in the approval process.
You can add individual planning units and planning units based on Parent member and generation criteria. See Selecting Planning Unit Hierarchy Members.
In Approvals Template, select:
Bottom Up (see Bottom-Up Budgeting).
Distribute (see Distributed Budgeting).
Free Form (see Free-Form Budgeting).
In Plan Type, select the plan type from which aggregated planning unit values are derived.
Click Next or select Primary and Subhierarchy Selection to select the planning unit hierarchy members (see Selecting Planning Unit Hierarchy Members).
Click Save and then Finish to save changes and close the planning unit hierarchy.
Data is input at the leaf member level (for example, children of Budget Group) and consolidated by rolling data up the organizational hierarchy. When the budget is started, data is populated for each scenario and user independently. The ownership follows the hierarchy of approval in bottom-up mode. Users can view or edit data based on access permissions defined for the planning unit. The topmost Budget Group owner consolidates individually approved budgets into a final consolidated budget.
Budget data is entered at the leaf level of the organization, and ownership starts at the top level of the organization. Ownership is then distributed down the organization hierarchy. After ownership reaches the lower levels, budgets are submitted back to the top through the approval process. The top budget group owner reviews, approves, and loads the budgets for budgetary control, transaction control, and reporting.
With free-form budgeting, data is input at the leaf member, and planners select the next owner from a drop-down list. The free-form budgeting mode allows planners to select the next owner from a drop-down list. Select this budget template if you are not using the approvals features described in Creating Planning Unit Hierarchies.