Understanding Position Budgeting

This section lists prerequisites, common elements that are used in this topic, and discusses the dimensions used in position budgeting and their relationships to line item activities.

In PeopleSoft Planning and Budgeting, position budgeting refers to the activity of budgeting for personnel costs by position. Use position budgeting to develop personnel line item budget activities for salaries, earnings, benefits, and employer-paid taxes.

To perform position budgeting in Planning and Budgeting, you can use actual position and employee job data that you import from your human resource system. When you import positions into Planning and Budgeting, define the planning center for positions using the Map HR Departments to Planning Centers - HR Departments page. The system uses this information to assign ownership of positions by human resource department to a planning center. This is a one-time process performed by business unit.

Note: After the system assigns an existing position to a planning center, the human resource department data becomes informational-only.

If your organization shares the cost of a position across more than one planning center, split the funding of the position by distributing the costs across multiple planning centers. If you belong to a planning center that is contributing to the cost of a shared position but you are not the owner, you can view your share of the costs within your personnel line items. The planning center in which you create a new position is the owner of the new position. Only the owner of the position can see the full complement and details of the position costs either through the position budgeting activity or online inquiry. Once the planning center owner of the position copies or submits their budget to the master version, run the model recalculation process. The contributing planning center sees its share of the expense in the personnel line item budgets.

Note: For security purposes, only the owning planning center of the position can see position-related details. If the contributor of position costs does not own the position but needs to see the details of position expense, they must also be granted access to the owning planning center's position activity.

When you add new positions within your planning center, your planning center owns added positions by default. You can transfer position ownership after you stage a position activity in the planning model.

Position budgets include filled and unfilled positions unless the preparer selects to exclude a specific position from budget calculation using the Position Data page. If excluded, the system does not include the position's costs and distributions in the position budget amounts for position budgeting or within your related personnel line item activity.

Budget amounts in position budgeting represent annual figures; so adjustments must also be made using an annual amount. Your personnel line item activity reflect the results of applying the amounts across time spans defined for your proposed budget.

In Planning and Budgeting, you work with slices of your position budgets one at a time based on your planning center definition. This increases the efficiency of the system and enables other budget users to access other data slices of the position activity and scenario at the same time. To work with position budgets, use the Edit link for a selected planning center version on My Planning Workspace for a defined position activity and scenario. After accessing the Position Overview page, select the type of position budgeting activity to perform. After you finish budgeting positions, unlock the activity. The parent line item activity will reflect position budgeting amounts. It may be necessary to perform a model recalculation.

Prerequisites

Before you begin working with position budgeting, the coordinator must complete the following tasks:

Load data into PeopleSoft Enterprise Performance Management using the delivered maps for the extract, transform, and load (ETL) process.

The system uses the jobs and maps to migrate position-related data from your PeopleSoft Human Resource Management System or other data source.
Set up position budgeting defaults at the coordinator level.

Set up defaults for existing positions and employee jobs from your human resource system and for new positions added in position budgeting.

This information includes defaults like position number, position budgeting accounts, position data, and job codes.
Set up and run stage for an activity and scenario in the planning model that will include your position data at the coordinator level.

The stage will format and load employee job and position data for use in Planning and Budgeting. The position-related information in the tables is static because you import it at one point in time. You can change the data online after you begin working with the position activity.

Examples of the types of position and human resource information that you import into the tables are:
- Existing filled and unfilled positions including position and employee numbers, incumbents, compensation, and cost distributions.
  
  When an employee job has no position number, one will be created and assigned during data staging if the Create New Positions option is selected on the Data Source page for the position activity scenario.
- Job codes and defaults that you can use for different types of positions.
- Union code information.
- Salary plans (including grades and steps) that you can use to project base salaries and merit increases.
- Benefit plans and codes that you can use to project employer costs for benefit and retirement costs.
- Earning codes that you can use to calculate special earnings paid to employees in addition to base salary.
- Employer paid taxes that you can use to calculate employer liability such as the Federal Insurance Contributions Act, Medicare, and Social Security.
(Optional) Update the existing employee data that was staged from PeopleSoft Human Resource Management System before releasing the activity scenario at the coordinator level.
Release the activity scenario for the planning model from the Scenario Manager page so that end users can access their budgets.

To begin working with position budgeting at the preparer level, perform the following tasks:

At the preparer level, have a working version of the position activity for a planning center to which you have access.

The system generates the first working version for the preparer level (lowest level of preparation) when the coordinator stages the activity scenario. You can also create one by copying the base version or another version.
Select Edit for a working version of the planning center for the position budgeting activity.

After you complete your position budgeting modifications, consider unlocking the version. You must release all locked versions when the system performs the recalculation for the planning model at the budget coordinator level.

Note: If you do not release all the versions, the system can automatically unlock the versions during the model recalculation process. Recalculation generates distribution rows that do not exist in line item for personnel-related expense.

Recalculation calculates all position budgeting amounts per period. This is useful when you change the spread ratios for a spread ID that is already in use on several positions. After you change the ratios and recalculate, the system updates all of the positions with the new calculated results.

Common Elements Used in this Topic

Benefits Plan Type or Plan Type

Defines a specific compensation structure for fringe or retirement benefits.

An organization has a different benefits plan type for each unique benefit program.

Budget Factor

The system uses a budget factor to calculate the portion of the position costs for an unfilled position that are included in the budget.

For example, if the budget factor is 1.00, the system calculates 100 percent of the position costs as the position budget amount. If the budget factor is 0.75, the system calculates 75 percent of the position costs in determining the position budget amount. The budget factor cannot be greater than 1.00.

Earnings Code

Defines compensation associated with an employee that is paid in addition to base salary.

These earnings can be defined in PeopleSoft Human Resource Management System as included or excluded from gross salary that is subject to taxes. Earnings can be defined as flat amounts or as a percentage of base salary.

Effective Sequence

Used to distinguish two effective-dated, active job entries that are on the same effective date for one employee.

Empl Rec# or Empl Rcd (employee record number)

Employee job sequence number that is used in the PeopleSoft Human Resource Management System to distinguish multiple jobs that are concurrently assigned to an employee.

FTE (full-time equivalent)

Represents the full-time, permanent, standard number of work hours per week defined for a job classification or job code calculated based on the employee history from human resources.

If the coordinator does not select Salary Override Allowed for the job code defaults and you modify the full-time employee (the FTE), the system automatically updates the salary amount for the employee based on the salary plan, grade, and step defaults.

Full/Part Time

Classifies a position as a full-time position or a part-time position.

If you define a position as full-time and fill it with two part-time employees, you have job-sharing. If you define two part-time positions and fill them with one employee, you have an employee with concurrent jobs.

Headcount or Head Count

Represents the number of people.

A position that is shared equally by two people has a headcount of 2 and an FTE of 1.00.

Note: The system does not use the headcount field to perform model calculations for position amounts. Unlike headcount, the system uses FTE for calculating amounts. For example, if you have two FTEs assigned to an unfilled position with an annual default salary of 25,000 USD, the amount reflected in your personnel line item budget for this position is 50,000 USD (2 FTE positions multiplied by 25,000 USD).

Job Code

Refers to one job classification or a group of job classifications that are grouped together because they have similar compensation structures.

Position Number

Identifies a position, which equates to a job requisition.

A position can be 1.00 FTE and assigned to more than one employee as long as the sum of their assignments to the position does not exceed 100 percent. For example, a position that is shared equally by two people has a headcount of 2 and an FTE of 1.00.

Regular/Temporary

Classifies a position as either regular-permanent or temporary.

Salary Plan

Defines a specific compensation structure for salaries.

An organization has a different salary plan for each salary structure. For example, if you have a salary structure for exempt employees that is different from nonexempt employees, you have at least two salary plans. A salary plan comprises grades and steps.

Salary Grade

Defines a specific salary range within a salary plan.

For example, suppose you have a salary plan with 15 grades, and each grade has a unique salary range. Grade A has a minimum salary of 10,000 and a maximum salary of 20,000; grade B has a minimum salary of 13,000 and a maximum salary of 23,000; grade C has a minimum salary of 18,000 and a maximum salary of 30,000; and so on.

Salary Step

Defines a specific salary rate within a salary range.

For example, suppose that you have a salary range with a minimum salary of 10,000. Salary steps for this range are defined in 10 percent increments. Therefore, step 1 is 10,000, step 2 is 11,000, step 3 is 12,100, step 4 is 13,310, and so on.

Standard Hours

Represents the total work hours per week that is defined for a position and calculated based on the employee history from human resources.

The system uses the standard hours field to determine the number of hours defined for an FTE. Typical values for standard hours are 40.0, 37.5, 30.0, 20.0, and 56.0.

Union Code

Represents positions with similar compensation plans and members of the same labor union that are subject to the same benefit structures.

Dimensions Used in Position Budgeting and their Relationship to Line Item Activities

Planning and Budgeting supports integration with PeopleSoft Human Resources Management System and third-party human resource applications. The dimensions that you work with in position budgeting are:

Selected for use in Planning and Budgeting.
Available in both the financial and human resource 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. Select dimensions that are independent of the data sources with which you are integrating. In this way, 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 both integration sources for human resource data as well as for financial data when determining the available dimensions that you want to use for position budgeting. You may only want to use dimensions that are supported in both the financial data integration source and human resource data integration sources in position budgeting. You defined these integration sources 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" topic to determine which dimensions you want to use in conjunction with position budgeting activities based on your integration sources, and the requirements around exporting data back to that 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 your dimensions used during position budgeting, it will be up to you to synchronize only those dimensions that are supported in both the financial and human resource data integration sources. You should only use the subset of dimensions that are available in both applications with position budgeting, especially when exporting data back to the source systems.

Dimension Relationship to Line Item Activity

Before working on your position budgeting activity, the coordinator defines each activity's relationship to other activities, namely line item types. When a data or workflow relationship exists between a position and line item activity, the position 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, expense data from personnel costs in your position activity will be aggregated and inserted into the parent line item based on its defined dimension and member rules. If you have extra dimensions in your position activity that are not defined in your parent line item, the data associated with that specific dimension will be aggregated away, and expense data will be 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 position activity must be the same as the parent line item, or a lower value on the tree when used. Your position activity is required to contain the account dimension, and dimension considered the planning center for the parent line item activity.

The use of workflow relationship will drive which version of the position activity is inserted into the line item activity when there is a data relationship:

Workflow not enabled

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

All the data inserted into the parent line item activity is sourced across each corresponding version. For example, all data located in version 1 of the position activity is inserted into the version 1 of the parent activity. You cannot submit a position activity by itself, or copy it to a new version, when workflow is enabled. The submit and copy actions occur 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 position activity, or when copying from version 1 to version 2 for the line item activity the version 2 is also created for the position activity.