Distributing Costs to Budget Detail Rows

This chapter provides an overview of cost and revenue budget generation, lists prerequisites, and discusses how to distribute costs to budget detail rows.

Understanding Cost and Revenue Budget Generation

PeopleSoft Program Management enables you to generate project cost and revenue budget details from the amounts defined on the Resources by Activity page.

This section discusses:

• Budget generation process flow.

• Budget details generation.

• Distribution of resource amounts to budget details.

• Distribution of resource amounts across budget periods.

• Currency conversion.

Note. This feature uses the PeopleSoft Project Costing Budgeting functionality.

See Budgeting Project Costs and Revenue.

Budget Generation Process Flow

You can create a detail budget plan in these ways:

• Manually, using the Project Budgeting pages.

• Using a Project Budget template.

• Copy from an existing budget plan.

• Load from resources defined on the Resources by Activity page.

This chapter discusses creating a detail budget plan from resources defined on the Resources by Activity page.

If a project request is not required, you can manually create a project using the Project General component (PROJECT_GENERAL). If a project request is used, the funding manager may request a detailed budget plan for the project request. In this case, the funding manager sets the project request to a status of Costing, and the system generates a project.

Use the Resources by Activity page on the project to identify the projected resources for the project. This information includes both cost and revenue information for the projected resources.

After project managers identify the resources on the Resources by Activity page, they can create budget details using project the Budget Plan component (PC_BUD_GENERAL).

Budget Details Generation

After a project manager defines the resources needed in the Resources by Activity page, you can use the Get Plan feature to load the estimates into a budget plan. Use these steps to load resource estimates into a budget plan:

1. Create and save a budget plan for the project cost or revenue budgets.

   Set the status of the cost and revenue plan IDs to Active.

2. Click the Get Plan button on the appropriate Plan ID line to retrieve the resource cost or revenue estimates from the Resources by Activity page and initiate the Distribute Costs to Budgets Application Engine process (PGM_SPREAD).

   The plan ID line must have a status of Active to retrieve resource estimates. The project must have a processing status of Pending, Active or Template to retrieve resource estimates. The Get Plan feature does not process resource cost or revenue estimates from the Resources by Activity page that occur prior to the budget plan's start date.

   The Distribute Costs to Budgets process creates budget detail lines for each activity using the estimates defined in the Resources by Activity page.

3. Review the Distribute Activity Resource Amounts page if available, and update the information if necessary.

If you add or delete resources on the Resources by Activity page after you created a detail budget, depending on the results you want, you can:

• Inactivate the original budget plan, create a new active budget plan and then click the Get Plan button to initiate the Distribute Costs to Budgets process.

• Delete the original budget plan, create a new active budget plan and then click the Get Plan button to initiate the Distribute Costs to Budgets process.

• Append to the original budget plan by using the Get Plan button multiple times.

If the project is part of a program, you can roll project budget details up to the program budget.

See Budgeting for Programs.

Distribution of Activity Resource Amounts to Budget Details

The system uses these rules to determine how to distribute activity resource amounts:

• If the project is associated with a project request, costs or revenue amounts from the Resources by Activity component are distributed to budget detail rows proportionately, based on the general ledger business unit and department IDs amounts defined on the Project Request - Costing page. In this case, the Distribute Activity Resource Amounts page does not appear when you click the Get Plan button, regardless of the Installation Options setting.

• If the project is not associated with a project request, and the Allow Get Plan Distribution By Department option is selected on the Installation Options - Project Costing page, the Distribute Activity Resource Amounts page appears.

  Users enter one or more general ledger business units, department IDs, and distribution percents for the system to use to distribute amounts from the Resources by Activity page to budget detail rows.

  The values you enter on the Distribute Activity Resource Amounts page override any general ledger business units and department IDs on the budget items entered on the Resources by Activity page.

• If the project is not associated with a project request, and the Allow Get Plan Distribution By Department option is not selected on the Installation Options - Project Costing page, amounts from the Resources by Activity component are distributed to budget detail rows using the ChartField values defined on the budget items.

When the Get Plan process distributes amounts from the Resources by Activity page according to the percentage distribution of the general ledger business unit and department ID combination, each row from the Resources by Activity page generates a separate budget detail row for each unique general ledger business unit and department ID combination.

If the general ledger business unit and department ID values are defined in the Budget Item ChartFields, they are overridden by the values from the Project Request - Costing page or Distribute Resource Activity Amounts page. All other ChartField values defined for the budget item are carried over to the budget detail row.

Note. If you select the Allow Get Plan Distribution By Department option on the Installation Options - Project Costing page, you must use the Distribute Activity Resource Amounts page to define the general ledger business unit and department ID when using the Get Plan feature for all projects that are not associated with a project request.

Distribution of Resource Amounts Across Budget Periods

After you generate separate budget detail rows from the Resources by Activity amounts, the Get Plan process distributes those values across budget periods in the budget plan. The system distributes the amounts using one of these methods:

• Even Spreading

  Even spreading occurs when the activity Start Date and activity End Date correspond to the first and last day of a defined budget period. The system divides the budget amount for each detail row by the total number of periods for the activity. The system then allocates this amount evenly across all of the periods for the activity.

• Uneven Spreading

  Uneven spreading occurs when the activity Start Date and activity End Date do not begin and end on the first and last day of a defined budget period. The system divides the budget amount for each detail row by the total number of days in the activity duration. The system then allocates this amount to each period according to the number of days in that period.

Currency Conversion

You can enter activity amounts in different currencies. When you run the Distribute Costs to Budgets Application Engine process, the system generates and converts the budget detail amounts to the currency code specified for the budget plan.

Prerequisites

To enable users to choose the general ledger business unit and department ID for budget details rows, you must activate the Allow Get Plan Distribution by Department option on the Installation Options - Project Costing page.

See Defining Project Costing Integration Installation Options.

Entering Distribute Costs to Budget Detail Rows

This section discusses how to:

• Generate budget detail rows from activity resource amounts.

• Enter general ledger business unit and department values for budget details.

Pages Used to Distribute Costs to Budget Detail Rows

Generating Budget Details from Activity Resource Amounts

Access the Budget Plan page.

Click the Get Plan button on an active budget plan row to launch the Distribute Costs to Budgets process. This process creates budget detail rows based on activity resource amounts. If the budget plan has a budget type of Cost, the system uses the cost amounts from the Resources by Activity page on the detail budget rows. If the budget plan has a budget type of Revenue, the system uses the bill amounts from the Resources by Activity page on the detail budget rows.

• If existing budget detail rows do not exist for the selection plan, the Distribute Costs to Budgets process creates new budget detail data.

• If existing budget detail rows exist for the selected plan, the Distribute Costs to Budgets process appends the cost data to the existing budget data.

The Distribute Costs to Budgets process completes one of these actions:

• If the Allow Get Plan Distribution by Department installation option is activated, the Distribute Activity Resource Costs page appears.

• If the Allow Get Plan Distribution by Department installation option is not activated, the system creates budget detail rows for budget calendar periods for the general ledger business unit and department ID from the budget items that are entered on the Resources by Activity page.

See Budgeting Project Costs and Revenue.

Entering General Ledger Business Unit and Department Values for Budget Details

Access the Distribute Activity Resource Amounts page.

GL Business Unit (general ledger business unit)	Enter the general ledger business unit to be used on budget detail lines for this project.
Department	Enter the department ID to be used on budget detail lines for this project.
Distribution Percent (%)	Enter the percentage for each general ledger business unit and department combination. The sum of the distribution percents must equal 100 percent.

Note. This page does not appear if the project is associated with a project request or if the Allow Get Plan Distribution by Department check box is not selected on the Installation Options - Project Costing page.