Budgeting Extensions Process


The Oracle Public Sector Financials (International) Budgeting Extensions features are an extension to the budgeting facilities provided in General Ledger and enable the definition, entry, and maintenance of both balanced and unbalanced budgets.


Budgeting Extensions meet the following business requirements:

Budgeting Extensions Process Flow Diagram

The diagram below shows the Budgeting Extensions Process Flow diagram, as described in the accompanying text.

Budgeting Extensions Process Flow Diagram

the picture is described in the document text

Setting Up Budgeting Extensions

The Budgeting Extensions functionality is based on standard General Ledger budgeting. Budgeting Extensions enhance the budget entry and budget maintenance steps in the budgeting process.

Note: Only areas directly affected by the Budgeting Extensions are described in this section.

Enable Budgeting Extensions in the Application Object Library

The system administrator enables the Budgeting Extensions using the Oracle Public Sector Financials (International) functionality control window in Application Object Library.

Define Profile Codes

The window enables profile codes to be defined for Budgeting Extensions. The profile code defines how an annual budget amount is automatically spread across the periods in the accounting calendar.

Profile Code Examples
Profile Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Flat 1 1 1 1 1 1 1 1 1 1 1 1
High Summer 1 1 1 1 2 3 4 4 3 2 1 1
Quarter 0 0 1 0 0 1 0 0 1 0 0 1

The budget amount is proportionally distributed across the periods. For example, if the annual budget is $24,000 then as shown in the above High Summer distribution, the amount for every month is as follows:

Total Budget = $24000, Total of High Summer ratios = 24, Formula = (Ratio/Total of ratios)*Total Budget

January to April = $1000

May = $2000

June = $3000

July to August = $4000

September = $3000

October = $2000

November to December = $1000

Define Reason Codes

The Reason Codes window helps you to define reason codes for Budgeting Extensions. Reason codes describe the reason for each budget transaction and are only used for reporting purposes.

Reason Code Examples
Reason Code Description
Initial Initial Budget
Pay Annual Pay Rise
Special Special Project Funding

Define Accounting Combination Budget Control Settings

The window enables budget control settings to be defined for each accounting flexfield combination for budgeting extensions. The budget control settings for each combination are defined as follows:

Define Budget Extension Profile Options

Budgeting Extensions provides a number of profile options that enable the functionality to be configured to meet each customer's requirements as follows:

Define Budget Range Codes

This procedure is optional.

Budget range codes are used to group ranges of accounting flexfield combinations for easier budget maintenance using the budget maintenance procedures.

Budget Range Code Examples
Range Code Account From Account To
Salaries 1-000-5000-000 9-999-5010-000
  1-000-6000-000 9-999-6999-999

Entering Budget Journals

Budget journals are the main method of entering budgets using Budgeting Extensions. Budget journals follow the standard structure of other General Ledger journals with a batch containing one or more journals and a journal containing one or more journal lines. In addition, as budget journals are year based, budget journals also contain one or more period entries for each journal line.

Two types of budget journals can be entered:

Maintaining Budgets

Budgets can be maintained in a number of ways after they are entered. Additional budget journals can be entered at any time to modify the budgets held, or one of the budget maintenance procedures can be used as follows:

Next Year Budgeting

The entry of budget journals also enables the budget effect and the next year amount of each journal line to be entered. During entry, each journal line is defined as either recurring or non-recurring. Recurring entries are entries that have an effect on the budget for the following year, for example, pay increases.

Non-recurring entries are entries that are not repeated in the following year, for example, a budget for car park resurfacing.

For recurring entries, the effect of the entry is entered. The effect can either be Full Year or Part Year. Full Year effect is used when the amount entered reflects the total cost for the year, for example, an annual payment for auditing fees. Part Year effect is used when the entered amount reflects the cost for part of a year, for example, a pay increase awarded in the middle of the year.

For Full Year entries, the entered amount is automatically entered as the next year amount. The Next Year Amount must be entered manually for Part Year entries.

When budget maintenance procedures are run, the Next Year Amounts are automatically updated in the same way as the current year figures.

When the budget for the next year is being set the Next Year Amounts can be used to automatically create a starting budget using the Next Year Create Budget process.