PeopleSoft Planning and Budgeting 9.1 PeopleBook

Setting Up Asset Budgeting

This chapter provides an overview of asset budgeting setup and discusses how to specify asset budgeting defaults.

Understanding Asset Budgeting Setup

In Planning and Budgeting, asset budgeting enables you to enter new assets into the budget as efficiently as possible while still giving the budget coordinator the control to ensure accuracy of asset data entry.

If you are using PeopleSoft Asset Management, you can import in-service asset data from Asset Management into Planning and Budgeting.

This section lists a prerequisite and provides overviews of:

Dimensions used in asset budgeting and the relationship to line item activities.
Asset catalog.
Capital acquisition planning.

Prerequisite

Before you set up asset budgeting activity in Planning and Budgeting, import asset data into the Enterprise Performance Management (EPM) database if you wish to leverage your existing asset's depreciation costs to apply to an expense budget.

Dimensions Used in Asset Budgeting and the Relationship to Line Item Activities

The flexibility around activity types in Planning and Budgeting requires particular attention to defining dimensionality and relationship to other activities. The following information can help you determine your rules around the dimensions that you work with and the activity relationships to an asset budgeting activity:

The available dimensions are those selected for use in Planning and Budgeting using the Dimension Configuration page.
The collection of dimensions used by the planning model are defined by the activity group.

The dimensions used between an asset activity and its parent line item activity do not need to be identical. For the shared dimensions, the asset activity (child/detailed activity) must budget at the same data or tree level or lower than the line item parent.
When defining activity relationships, asset activity types cannot be a parent activity.
Use the asset activity for detailed asset and depreciation information summarized and inserted into a line item activity.
An asset activity can only have one primary parent line item activity when defining a workflow relationship.
When there is a workflow relationship, both the asset and line item activities must use the same planning center dimension and level.
If there is only a data relationships (no workflow) between an asset and a line item activity, the planning center dimension can be different between the two activities.

The only requirement is that the asset activity, which is the child activity, must include as a dimension the line item parent's planning center dimension.
If you want your in-service asset account costs (purchase price) to appear as a starting balance in your line item activity, you must select the 'Include Balance Sheet Planning' option for the line item activity to allow this additional starting balance column in your line item grid.
Asset activities cannot have workflow or data relationships with other asset activities.

Note. Even though only one line item activity can be defined as a workflow relationship for an asset activity, it could potentially have a secondary data relationship to another line item activity. An example of this is when you have a line item expense activity and a separate balance sheet activity; data from assets can be inserted into both activities, but only one can be defined as a workflow relationship.

Asset Catalog

An asset catalog entry stores basic information about each type of asset such as asset class, accounts, cost, depreciation method, life, salvage value, and currency code. Each type of asset that you create in Planning and Budgeting needs an entry in the asset catalog (PS_BP_ASSET_ITEMS).

As a budget preparer during the budgeting cycle, you select an asset catalog item before you add a new asset. The asset catalog information that appears on the Asset Data page is based on default values defined at the coordinator level.

If you are using Asset Management, you can import most of the catalog information into Planning and Budgeting. You can also populate the asset catalog in the EPM database by using the asset budgeting default pages in Planning and Budgeting. At a minimum within Planning and Budgeting, the coordinator defines the default values for asset account, depreciation account, and cost.

Capital Acquisition Planning

Managing and projecting capital expenditures requires that you track each acquisition and estimate change. Capital acquisition planning lets you view a running balance as you budget fixed assets based on the master plan and subsidiary plans. When you acquire assets, you associate them with the capital acquisition plan (CAP) and maintain a current view as your business makes expenditures included in the plan.

To appropriate funds for a CAP, provide details about the ChartFields (also known as dimensions) affected by the plan, and then enter a cost estimate and a cost limit. Each plan can consist of a single level of detail or have multiple detail lines. A sequence number distinguishes each line of detail.

If you set up CAPs in Asset Management or Planning and Budgeting, each time you add an asset, you can assign it a CAP number and a CAP sequence number that links it to an open CAP and CAP detail line. You can also make this link in Purchasing when you create requisitions or purchase orders to purchase assets. Assets created using the interface from Purchasing are automatically associated with the CAP assigned on the requisition.

If you change the CAP in the EPM or PeopleSoft Financial Management databases, the system synchronizes the databases using the publish and subscribe features in PeopleSoft Application Messaging.

See Integrating with Other Applications.

See PeopleTools PeopleBook: PeopleSoft Integration Broker

Specifying Asset Budgeting Defaults

You must define the asset budgeting defaults that are used for the planning model. The default settings determine the level of autonomy that budget preparers have as they plan for new assets. Preparers can enter only the accounts specified on the setup pages in asset budgeting. The override check boxes control the preparers' ability to modify information as they add assets.

This section discusses how to:

Define asset budgeting defaults.
Select asset accounts.
Select depreciation accounts.
Specify asset catalog items.
Define capital acquisition plans.

Pages Used to Specify Asset Budgeting Defaults

Page Name	Definition Name	Navigation	Usage
Asset Budgeting Defaults	BP_ASSET_OPTIONS	Planning and Budgeting, Planning and Budgeting Setup, Asset Budgeting Defaults	Establish defaults used when working with assets, enable override capability for CAP and cash account information, and specify cash accounts.
Asset Budgeting Defaults - Asset Accounts	BP_ASSET_ACCOUNT	Click the Asset Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Depreciation Accounts pages.	Define the asset accounts through which preparers perform asset budgeting.
Asset Budgeting Defaults - Depreciation Accounts	BP_DEPR_ACCOUNT	Click the Depreciation Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Asset Accounts pages.	Specify depreciation accounts or enable override capability for useful life, salvage value, and the depreciation method associated with assets.
Asset Catalog	BP_ASSET_CATALOG	Planning and Budgeting, Planning and Budgeting Setup, Asset Budgeting Defaults, Asset Catalog	Set up asset profiles that comprise an asset catalog. Profiles include default accounts, cost, depreciation method, useful life, salvage value, and currency code.
Capital Acquisition Planning Details	BP_CAP_DETAILS	Planning and Budgeting, Planning and Budgeting Setup, Asset Budgeting Defaults, Capital Acquisition Planning	Add new or view existing CAPs that you can use in the planning model.

Defining Asset Budgeting Defaults

Access the Asset Budgeting Defaults page (Planning and Budgeting, Planning and Budgeting Setup, Asset Budgeting Defaults, Asset Budgeting Defaults).

Asset Prefix

Enter the prefix assigned to assets that you add in Planning and Budgeting.

Last Assigned Asset Nbr (last assigned asset number)

Enter the last assigned asset number so that the system can determine the next number to use.

The system automatically increments this value by one each time you save an asset in the planning model.

Note. To ensure that your asset numbers align properly, determine the number of digits that you need, and then enter the desired numerals as necessary.

Capital Acquisition Plan #

Enter a plan number to which all budgeted assets are attributed.

Sequence

Enter a CAP sequence number to which all budgeted assets are attributed.

Budgets User Can Override

Select to enable preparers to specify a CAP number or CAP sequence number other than the default when using the Asset Data page.

Capital Acquisition Plan Req (capital acquisition plan required)

Select to require the CAP number for any assets added in Planning and Budgeting.

Default Cash Account

Enter the acquisition cost stored in the default cash account for accurate projected cash outflows.

Select Budgets User Can Override to let preparers override this account on the Asset Data page. If override capability is enabled, you can select from the list of cash accounts that you enter in the Cash Accounts grid.

Account

Enter the cash accounts affected by the acquisition of an asset.

Select the cash accounts that can be used for asset budgeting activity.

Selecting Asset Accounts

Access the Asset Budgeting Defaults - Asset Accounts page (click the Asset Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Depreciation Accounts pages).

Account

Enter the accounts used for asset budgeting activity.

Affects Cash Account Indicator

Select to specify that the asset account affects cash accounts.

If selected, when preparers add or edit a new asset, Planning and Budgeting updates the cash account information.

If cleared, you can create new assets without creating cash accounting entries.

Selecting Depreciation Accounts

Access the Asset Budgeting Defaults - Depreciation Accounts page (click the Depreciation Accounts link on the Asset Budgeting Defaults or Asset Budgeting Defaults - Asset Accounts pages).

Asset Life - Override Allowed

Select to let preparers edit the useful life when adding or editing a new asset.

Clear to restrict preparers from changing the default value that you specify for an asset catalog item using the Asset Catalog page.

Salvage Value - Override Allow

Select to let preparers edit the salvage value when adding or editing a new asset.

Clear to restrict preparers from changing the default values that you specify using the Asset Catalog page.

Depr Method - Override Allowed (depreciation method - override allowed)

Select to let preparers edit the depreciation method when adding or editing a new asset.

Clear to restrict preparers from changing the default values that you specify using the Asset Catalog page.

Account

Enter the accounts used for depreciation expense in asset budgeting.

Specifying Asset Catalog Items

Access the Asset Catalog page (Planning and Budgeting, Planning and Budgeting Setup, Asset Budgeting Defaults, Asset Catalog).

Defaults that you define for an Asset Profile ID using this page appear on the Asset Data page when you select an asset catalog item.

Note. If you use Asset Management and import asset catalog data into Planning and Budgeting, most of the fields on this page display the asset profile data from Asset Management. However, some information, such as depreciation account, asset account, and cost is required for budgeting purposes and unavailable in Asset Management.

If you are not using asset data from Asset Management, use this page to define a catalog item (Asset Profile ID) for each type of asset that you want to enter in Planning and Budgeting.

Asset Class	Enter the asset profile that groups default values for the asset class.
Depreciation Account	Enter the desired depreciation account. The available values come from the accounts that you enter using the Asset Budgeting Defaults - Depreciation Accounts page. You cannot override this value using the Asset Data page.
Asset Account	Enter the desired asset account. The available values come from the accounts that you enter using the Asset Budgeting Defaults - Asset Accounts page. You cannot override this value using the Asset Data page.
Cost	Enter the cost of the asset for this asset class.
Method, Useful Life, and Salvage Value	Override these defaults at the preparer level if you enabled override capability using the Asset Budgeting Defaults - Depreciation Accounts page. Note. The system expresses the asset's Useful Life in years. For assets that require partial year depreciation, use a decimal instead of rounding to the nearest year. For example, an asset with an 18-month useful life would be expressed as 1.5000.
Currency Code	Enter the currency related to the asset's default cost and salvage value.

Note. Since these account default rules represent the dimension members for the asset activities in your planning model, make sure that all values exist on the same level of an account tree you use in your activity group. You want all the accounts used for asset budgeting to be consistent with the account tree, dimension leveling, and parent line item activity, within the scenario of your business unit's planning model. Users may not be able to add assets or run reports when the accounts used are at varying levels of an account tree. This applies for all the above listed pages which use account defaults, namely: Asset Budgeting Defaults, Asset Budgeting Defaults - Asset Accounts, Asset Budgeting Defaults - Depreciation Accounts, and Asset Catalog pages.

Defining Capital Acquisition Plans

Access the Capital Acquisition Planning Details page (Planning and Budgeting, Planning and Budgeting Setup, Asset Budgeting Defaults, Capital Acquisition Planning).

The Details group box displays details about the CAP. When you add an asset, you can select a combination of CAP number and CAP sequence number to further identify the plan row to which the asset is associated. For example, if the CAP is for a new building, sequence 1 could have a description of Office Space, sequence 2 could be Cafeteria, and sequence 3 could be Conference Rooms.

Capital Acquisition Plan Class	Select the capital acquisition plan class: Values are: Cost Reduction, Expansion, Necessity, or New.
Original/Adjustment Switch	Select the type of information that you are entering. Values are: Adjustment: Use this value if you are revising existing plans Original: Use this value if you are entering a new plan
Description	Enter a description for the plan detail. This may be similar to the high-level plan description if your plan contains only one sequence number.
Capital Acquisition Plan Type	Select from the CAP types that you defined when you established asset processing. Specify the ChartFields (dimensions) for each CAP plan sequence if the CAP plan sequence can be associated only with these ChartField values.
Status	Select the desired CAP status. The CAP must have a status of Open for you to be able to associate assets with it in Purchasing or Asset Management. A CAP that is still in the approval phases cannot have actual assets linked to it; however, preparers can link budgeted assets to a CAP regardless of its status.
Estimated Completion Date	Enter a date to track this plan.
Date Closed	Enter the completion date after all of the items in this plan have been acquired.
Estimated Cost	Enter a different cost to adjust the cost estimate. Enter this value only after selecting Adjustment from the Original/Adjustment Switch dropdown list box.
Cost Limit and % Over Allowed (percentage over allowed)	Enter one or the other value to define cost thresholds. The system automatically calculates the cost limit when you enter the percentage over allowed cost. The system allows you to add an asset to the plan that raises your acquisition costs over the limit. The capital acquisition planning standard query reports reflect the disparity.

Asset Prefix	Enter the prefix assigned to assets that you add in Planning and Budgeting.
Last Assigned Asset Nbr (last assigned asset number)	Enter the last assigned asset number so that the system can determine the next number to use. The system automatically increments this value by one each time you save an asset in the planning model. Note. To ensure that your asset numbers align properly, determine the number of digits that you need, and then enter the desired numerals as necessary.
Capital Acquisition Plan #	Enter a plan number to which all budgeted assets are attributed.
Sequence	Enter a CAP sequence number to which all budgeted assets are attributed.
Budgets User Can Override	Select to enable preparers to specify a CAP number or CAP sequence number other than the default when using the Asset Data page.
Capital Acquisition Plan Req (capital acquisition plan required)	Select to require the CAP number for any assets added in Planning and Budgeting.
Default Cash Account	Enter the acquisition cost stored in the default cash account for accurate projected cash outflows. Select Budgets User Can Override to let preparers override this account on the Asset Data page. If override capability is enabled, you can select from the list of cash accounts that you enter in the Cash Accounts grid.
Account	Enter the cash accounts affected by the acquisition of an asset. Select the cash accounts that can be used for asset budgeting activity.

Asset Life - Override Allowed	Select to let preparers edit the useful life when adding or editing a new asset. Clear to restrict preparers from changing the default value that you specify for an asset catalog item using the Asset Catalog page.
Salvage Value - Override Allow	Select to let preparers edit the salvage value when adding or editing a new asset. Clear to restrict preparers from changing the default values that you specify using the Asset Catalog page.
Depr Method - Override Allowed (depreciation method - override allowed)	Select to let preparers edit the depreciation method when adding or editing a new asset. Clear to restrict preparers from changing the default values that you specify using the Asset Catalog page.
Account	Enter the accounts used for depreciation expense in asset budgeting.