PeopleSoft Planning and Budgeting 9.1 PeopleBook

Using Asset Budgeting

This chapter provides overviews of asset budgeting activities, the relationship to line item activities, and depreciation methods, lists prerequisites, and discusses how to work with assets.

Understanding Asset Budgeting Activities

Establish the starting point for developing a capital budget by importing from PeopleSoft Asset Management or another application the existing in-service assets and their depreciation expenses.

Planning and Budgeting enables you to view running totals as you budget fixed assets within your proposed budget. After the budget coordinator establishes the starting point and asset-related defaults, add new assets that you plan to purchase during the proposed budget period. For your proposed capital budget, the system reflects the new depreciation expenses along with existing assets. View or edit these newly added assets as necessary; however, you cannot edit existing in-service assets.

After you add and save new assets to the budget, the effect of the asset is reflected in line item budgeting. The inclusion of existing, in-service assets can also affect your line item budget for depreciation expense, and your starting balance if you are including asset accounts in conjunction with an activity that allows balance sheet planning. When a line item activity for balance sheet planning includes the asset accounts, the in-service asset purchase price will be included in the starting balance of the asset account with which it is associated. The system stores the details of an asset, including the cost and depreciation information that can impact a line item activity budget.

The new asset IDs are not sent back to Asset Management, but you can view the details online by analyzing the data or running a custom report against the EPM Warehouse records.

Note. The in-service asset amounts that appear in the starting balance of a line item activity is the full original purchase price of the asset (cost multiplied by quantity), it does not include or subtract any accumulated depreciation.

The starting balance column is available in your line item activity when you select the Include Balance Sheet Planning option on the Activity page.

To budget assets:

Search for and view existing assets for the planning center.
Add assets to the asset budgeting activity.
Inquire about the asset budgeting default values.

Understanding the Relationship to Line Item Activities

Planning and Budgeting supports integration with Asset Management and third-party asset management applications. The dimensions that you work with in asset budgeting are:

Selected for use in Planning and Budgeting.
Available in the financial applications with which you are integrating.
Defined and included as dimensions by activity in the planning model definition.
Related to line item activities.

Dimensions Configured for Planning and Budgeting

Use the Dimension Configuration page in Planning and Budgeting (under Maintain System Options) to select the dimensions that you want to use in the application. You can select dimensions that are independent of the data source with which you are integrating. Because of this, you can select a dimension that is not supported by a selected integration source and use it in the planning model.

See Configuring Dimensions for Planning and Budgeting.

See Activating Inactive Dimensions.

Dimensions Available by Integration Source

You should consider integration sources for financial data when determining the available dimensions that you want to use for asset budgeting. You may only want to use in asset budgeting dimensions that are supported in the financial data integration source. You defined this integration source using the Budgeting Installation Options page under Maintain System Options.

Refer to the table of dimensions by integration point in the Setting up the System Options chapter to determine which dimensions you want to use in conjunction with asset budgeting activities based on your integration source. This is a requirement when you use the publish and subscribe feature between Enterprise Performance Management for your capital acquisition plan and your source system.

See Identifying Data Integration Sources.

Dimensions Defined and Included as Dimensions in the Planning Model

Define the dimensions that you want to include in the planning model by activity using the Activity Group page. By activity, select from the dimensions that are available based on the selected active dimensions defined on the Dimension Configuration page. When you define the dimensions used during asset budgeting, it is up to you to synchronize only those dimensions that are supported in the financial source system. You should only use the subset of dimensions that are available in the application with asset budgeting.

Dimension Relationship to Line Item Activity

Before working on your asset budgeting activity, the coordinator defines the activities' relationship to other activities, namely line item types. When a data or workflow relationship exists between an asset and line item activity, the asset is considered the child and the line item is the parent activity. Both of these activities can be defined using the same dimensions, or slightly different combinations of dimensions for each activity.

For data relationships, asset accounts and depreciation expense data in your asset activity are aggregated and inserted into the parent line item based on its dimension and member rules. If you have extra dimensions in your asset activity that are not defined in your parent line item, the data associated with that specific dimension are aggregated away, and asset and expense data are inserted and associated with dimensions and members that do exist in the line item activity. When using the same dimension between activities, member values you use in your asset activity must be the same as the parent line item, or a lower value on the tree when applicable. Your asset activity is required to contain the account dimension, and the dimension that is considered the planning center for the parent line item activity.

The use of the workflow relationship drives which version of the asset activity is inserted into the line item activity when a data relationship exists. (This relationship is set by the 'Approval Includes' option on the Relationships page.) These rules apply:

Workflow not enabled.

All the data inserted into the parent line item activity are sourced from the master version. You must either submit or copy your data into the master version before the current asset and depreciation expenses can be brought into the line item activity.
Workflow enabled.

All the data inserted into the parent line item activity are sourced across each corresponding version. For example, all data located in version 1 of the asset activity are inserted into the version 1 of the parent activity. You cannot submit an asset activity by itself when workflow is enabled. The submit action occurs at the parent line item activity level when workflow is enabled between the activities. Therefore, submitting the version 1 for line item activity also submits version 1 of the asset activity.

Note. If the coordinator defines separate parent line item activities, one to capture balance sheet accounts, and another for expense account types, only one parent line item can have the workflow relationship with the asset. The second line item activity can have only a data relationship (set by the 'Includes Data From' option on the Relationships page).

Understanding Depreciation Methods

Planning and Budgeting enables you to use the following depreciation methods and calculates the per-period depreciation based on the following formulas:

Depreciation Method	Formula
Straight Line	Net Book Value ÷ (Number of Periods in a Year × Life)
Sum of the Years' Digits	[(Remaining Years of Life ÷ Sum of Years Remaining) × Net Book Value] × Percent of Year to Depreciate
Declining Balance	(1 ÷ Life) × (Cost × Accumulated Depreciation ) ÷ (Number of Periods in a Year)
Double Declining Balance	(2 ÷ Life) × (Cost × Accumulated Depreciation ) ÷ (Number of Periods in a Year)

Select from these depreciation methods using the Asset Data page when override is allowed.

A 'None' option is also available in the dropdown for the depreciation method when depreciation expense is not necessary or is not applied to an asset.

Prerequisites

Before you begin asset budgeting, complete the following setup steps:

Import asset data into Planning and Budgeting from Asset Management or another data source at the coordinator level.
Set up asset budgeting defaults at the coordinator level.
Create a planning model and define the asset activity's data source before staging and releasing the activity at the coordinator level.
Edit a working version for the asset budgeting activity at the preparer level.

Note. After you complete your asset budgeting modifications, be sure to unlock the version.

Working with Assets

This section discusses how to:

Search for, edit, and display assets.
Add assets to the budget.
Analyze asset budgets.

See Working with Planning and Budgeting Activities.

Pages Used to Work with Assets

Page Name	Definition Name	Navigation	Usage
Asset Overview	BP_ASSET_OVERVIEW	Planning and Budgeting, Activity Preparation, My Planning Workspace Click the Edit link to update or the View link for read-only access.	Search for, edit, and display assets meeting your criteria. You can also access the following pages: Asset Data, Asset Analysis, Capital Acquisition Planning Details, Asset Catalog, and Asset Budgeting Defaults.
Asset Data	BP_ASSET_DATA	Click the Add Asset button on the Asset Overview page or select one of the existing assets to edit or review.	Enter details about a new asset, update an asset already added, or review the details of an in-service asset.
Asset Analysis	BP_AST_INQUIRY	Click the Asset Budgeting Analysis link on the Asset Overview page.	Enter selection criteria to find the asset data that you want to analyze or download to a Microsoft Excel spreadsheet.
Asset Analysis	BP_AST_INQUIRY2	Click Run on the Asset Analysis page.	View results of the asset data analysis process.
Capital Acquisition Planning Details	BP_CAP_DETAILS	From the View Asset Defaults dropdown list box on the Asset Overview page, select Capital Acquisition Plan, and then click Go.	Displays defaults for capital acquisition plans.
Asset Catalog	BP_ASSET_CATALOG	From the View Asset Defaults dropdown list box on the Asset Overview page, select Asset Catalog, and then click Go.	Displays defaults defined for the asset catalog.
Asset Budgeting Defaults	BP_ASSET_OPTIONS	From the View Asset Defaults dropdown list box on the Asset Overview page, select Asset Budgeting Defaults, and then click Go.	Displays defaults defined for asset budgeting.
Asset Budgeting Defaults - Asset Accounts	BP_ASSET_ACCOUNT	Click the Asset Accounts link on the Asset Budgeting Defaults page.	Displays the accounts that you can use while adding or updating assets.
Asset Budgeting Defaults - Depreciation Accounts	BP_DEPR_ACCOUNT	Click the Depreciation Accounts link on the Asset Budgeting Defaults page.	Displays the accounts that you can use while adding or updating assets and lets you override settings related to asset life, salvage value, and depreciation method.

Searching for, Editing, and Displaying Assets

Access the Asset Overview page (Planning and Budgeting, Activity Preparation, My Planning Workspace, then click the Edit or View link for an asset activity).

Action Menu

Add Asset

Click to select an asset profile from the catalog and access the Asset Data page to add a new asset.

See Adding Assets To the Budget.

Asset Budgeting Analysis

Click to access the Asset Analysis page and enter selection criteria to find the asset data that you want to analyze or download to a Microsoft Excel spreadsheet.

See Analyzing Asset Budgets.

View Asset Defaults

Select the desired asset default type, and then click Go. Values are:

Capital Acquisition Plan to access the Capital Acquisition Planning Details page and display defaults for capital acquisition plans.
Asset Catalog to access the Asset Catalog page and display defaults defined for the asset catalog.
Asset Budgeting Defaults to access the Asset Budgeting Defaults page and display defaults defined for asset budgeting.

The asset budgeting defaults are defined at the coordinator level.

See Setting Up Asset Budgeting.

Search Criteria

Asset ID, Asset Account, Depreciation Account, Catalog Item, Capital Acquisition Plan #, and Capital Acquisition Plan Seq	Enter your search criteria, and then click Search to display in the Assets group box the assets meeting your criteria.
Asset Status	Select the desired asset status. Values are: Budgeted: Assets that are entered in Planning and Budgeting. In-Service: Assets that are entered in Asset Management.
Show Excluded Assets	Select to expand your search results to include assets that are excluded from budget calculations. Note. To exclude an asset from budget calculations, use the Asset Data page.
Search	Click to display in the Assets group box the assets meeting your criteria.

Assets

Asset ID	Click to access the Asset Data page and edit the asset (budgeted assets only) or display the asset (only assets that are in service).
Don't Unlock	Click to return to the My Planning Workspace page for this activity scenario without releasing the lock so that others cannot edit this planning center for this activity scenario.
Unlock	Click to return to the My Planning Workspace page for this activity scenario after releasing the lock so that others can edit this planning center for this activity scenario.

Adding Assets To the Budget

Access the Asset Data page (click the Add Asset button on the Asset Overview page or select one of the existing assets to edit or review.)

Planning Center

Asset ID

Displays DEFAULT when you first add an asset before saving, and displays the system-generated asset identifier after you save the asset record.

Exclude from Budget Calc (exclude from budget calculation)

Select to withhold the asset from line item budget calculations.

The asset's attributes remain in the activity scenario.

Asset Information

Catalog Item	Select an asset catalog item with which to associate the asset ID. If you access this page from the Asset Overview page, the selected catalog item on the Asset Overview page displays here.
Asset Account and Depreciation Account	Displays values based on the selected asset catalog item defined by the coordinator using the Asset Catalog page.
Cash Account	Enter the desired cash account. The coordinator uses the Asset Budgeting Defaults page to define default and override capability. You can override the account value if override capability is enabled at the coordinator level.
Budget Period	Select when the asset will be acquired.
Quantity	Enter the number or units of assets.
Cost	Enter the cost per unit.
Purchase Price	Displays the total price based on quantity multiplied by cost. Note. If you use a multiple currency planning model and you modify the Currency Code, click Refresh to display the translated cost, salvage value, and total price amounts.

Depreciation Information

Useful Life	Enter the useful life in years. You can enter a partial year. Based on the selected asset catalog item (defined by the coordinator using the Asset Catalog page), you can override this value if you enabled override capability on the Depreciation Accounts page.
Salvage Value	Displays the salvage value.
Depreciation Method	Select a different depreciation method (based on the asset catalog item selected by the coordinator using the Asset Catalog page) if the coordinator enabled override capability on the Depreciation Accounts page. Values are: Straight Line Sum of the Years' Digits Declining Balance Double Declining Balance None
Budget Period From	Select a depreciation start period for depreciation calculations. Note. If you specify a depreciation start period, the system calculates the depreciation based on the specified cost, depreciation method, useful life, and budget period from. If you use a multiple-year budget, the system calculates the depreciation for all remaining periods within the budget, taking into account the life of the asset. If you do not want the system to calculate depreciation in the current budget year, do not enter a value into this field. Alternatively, select the None option for depreciation method. If you use a multiple year budget, specify a start period for a year subsequent to the acquisition year as long as the period is contained within the proposed budget.

Capital Acquisition Plan Information

Capital Acquisition Plan # (capital acquisition plan number)

Enter a different value to identify the plan row if the coordinator enabled override capability and defined defaults at the coordinator level using the Asset Budgeting Defaults page.

Note. If the Capital Acquisition Plan Number Req option is selected on the Asset Budgeting Defaults page, you must enter a capital acquisition plan number to save.

Capital Acquisition Plan Seq (capital acquisition plan sequence)

Enter a different value to identify the plan row if the coordinator enabled override capability and defined defaults at the coordinator level using the Asset Budgeting Defaults page.

ChartField Distribution

Account and Currency Code

Displays the account and currency code value defaults based on the selected asset catalog item defined by the coordinator using the Asset Catalog page. If the coordinator included other dimensions (ChartFields) in the asset activity in the planning model, you can use them during data entry.

Note. New assets that you add are associated with the planning center in which they were created. You cannot distribute or split the amounts for a single asset ID across additional planning centers or dimension values.

Depreciation Details

Budget Period and Depreciation Amount

Displays the depreciation rows that you add.

The sum of these depreciation amounts corresponds to the depreciation amount displayed on the Asset Overview page for this asset.

Note. To ensure that the per-period depreciation value equals the annual depreciation total, the system adds or deducts the variance from the last period when the life of the asset has ended.

Note. The system does not apply any ChartField validation rules when saving assets. The validation for assets occurs in the parent line item activity if you select Enforce Budget for the line item activity.

Note. If you add an asset for a dimension combination that did not previously exist in the line item activity, it is possible that the new row will not immediately appear in the line item until you run the planning model recalculation application engine process at the coordinator level. To view the new asset line items immediately, add the dimension combination first in line item budgeting, select the ASSET method, and then create the assets for that combination.

Analyzing Asset Budgets

Access the Asset Analysis page (click the Asset Budgeting Analysis link on the Asset Overview page).

Role Name

Select the planning and budgeting role associated with the asset activity that you want to analyze.

Business Unit, Planning Model ID, Activity, Scenario, and Planning Center

Enter values associated with the asset activity that you want to analyze.

Budget Version

Select the budget version associated with the asset that you want to analyze.

Labels

Select the desired label display option. Values are:

Code
Code and Description
Description

Run

Click to review the results of your search.

Note that the New Cost data pertains only to new assets and does not include in-service assets, while the Purchase Price column reflects both the new assets and in-service assets.

The Purchase Price reflected for the in-service assets on the report will only show up in a line item activity that allows balance sheet planning. When using the asset activity in conjunction with a line item activity for balance sheet planning, the asset's original purchase price will appear in the starting balance column for the corresponding asset account row.