Understanding Asset Budgeting Setup

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.

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.

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.

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 Understanding Planning and Budgeting Integrations.

See PeopleTools Document: PeopleSoft Integration Broker