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:
annual budget automatic profiling
enforcement of double entry budgets
maintenance of next year budget figures
The diagram below shows the Budgeting Extensions Process Flow diagram, as described in the accompanying text.
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.
The system administrator enables the Budgeting Extensions using the Oracle Public Sector Financials (International) functionality control window in Application Object Library.
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.
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
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.
|Pay||Annual Pay Rise|
|Special||Special Project Funding|
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:
Enforce Balanced Budgeting set to Yes
Each budget entry must be matched by a balancing entry for account combinations where balanced budgeting is enforced. In this way, budgeting extensions budget journals enforce the same control as standard double entry accounting journals.
Enforce Balanced Budgeting set to No
For account combinations where balanced budgeting is not enforced each budget entry is treated as a single entity and does not need to be matched by a balancing entry.
Budgeting Extensions provides a number of profile options that enable the functionality to be configured to meet each customer's requirements as follows:
Allow Prior Period Balancing
Average Unbalanced Budgets
Unbalanced Budget Control Total
Default Code for Unbalanced Budget Entry
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.
|Range Code||Account From||Account To|
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:
balanced budget journals
Balanced budget journals enable budget transactions to be entered against any accounting flexfield combination defined as balance enforced.
Annual figures are entered in journal lines with a start period, the period from which the annual amount should be profiled, and a profile code.
This information is used to automatically calculate the budget amount for each period in the accounting calendar.
When the journal is complete, Oracle Public Sector Financials (International) checks that the journal debits and credits balance and that the control total matches the entered journal lines. Period budget journals are then automatically corrected.
unbalanced budget journals
Unbalanced budget journals enable budget transactions to be entered against any accounting flexfield combination defined as balance not enforced.
Annual figures are entered in journal lines and are treated according to the setting of the Average Unbalanced Budgets profile option. When the profile option is set to No, unbalanced budget amounts are treated in the same way as balanced budget journal lines. When the profile option is set to Yes, the entered amount is repeated for each period in the accounting calendar.
When the journal is complete, Oracle Public Sector Financials (International) checks that the control total matches the entered journal lines and automatically creates the period budget journals.
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:
Budget reprofiling enables the existing budget, for a selection of accounting flexfield combinations, to be reprofiled across the periods in the accounting calendar.
Budget indexation enables the existing budget, for a selection of accounting flexfield combinations, to be increased or decreased by an entered percentage.
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.