Setting Up Methods
You need to prepare method groups for use in the planning model for line item activities. This section provides overviews of methods and method drivers and discusses how to:
Modify method names and view method attributes.
Define method drivers.
Describe driver lookup tables.
Define driver lookup details.
Establish planning method groups.
Copy a planning method group.
Define a method's drivers.
Pages Used to Set Up Methods
Page Name |
Definition Name |
Navigation |
Usage |
---|---|---|---|
Planning Method |
BP_MTHD |
|
Modify a planning method name and view method attributes. |
Method Driver |
BP_MTHD_DRV |
|
Define method drivers. |
Driver Lookup Tables |
BP_DIST_TYP |
|
Define driver lookup tables and assign or distribute amounts to planning centers. |
Driver Lookup Details |
BP_DIST_DRV_PER |
Click the Lookup Table Details link on the Driver Lookup Tables page. |
Create or modify the driver lookup table details by planning centers and period. |
Planning Method Group |
BP_MTHD_GROUP |
|
Group the methods, method drivers, driver lookup tables, and driver parameters to be used by line item activities. |
Copy Method Group page |
BP_MTHDGRP_COPY |
Click the Copy Method Group button on the Planning Method Group page. |
Copy a planning method group. |
Method Drivers |
BP_MTHD_DRVR_GROUP BP_MTHD_DRVR_GRP_N |
Click the Method Drivers link on the Planning Method Group page. |
Define a method's drivers, driver parameters, and lookup ID. |
Understanding Methods
The system assigns a method to every line in a line-item budget activity. This method defines how the system calculates the budget amount for the line or how the system derives the budget amount if a calculation is unnecessary.
Use the delivered methods as a basis for creating the planning model activities. You can change the method name and provide a description that is more meaningful to your organization. Changing the method name does not change the logic and rules that underlie the method itself.
Method ID |
Method Name |
Description |
Usage |
---|---|---|---|
AMTFTE |
Amount Per FTE (amount per full-time equivalent) |
Define an amount to multiply times the number of full-time equivalents (either from a planning center or business unit) that is then picked up from the position budgeting activity. |
Available for bottom-up scenario types when expense planning, and only used in conjunction with the Position Budgeting Activity. |
AMTHC |
Amount Per Headcount |
Define an amount to multiply times the headcount (either from a planning center or business unit) that is then picked up from the position budgeting activity. |
Available for bottom-up scenario types when expense planning, and only used in conjunction with the Position Budgeting Activity. |
AMTPER |
Amount Per Budget Period |
Enter amounts in budget periods. |
Available for bottom-up, top-down, and forecast scenario types, and can be used in conjunction with the spreadsheet add-in for data entry and balance sheet planning. |
AMTUNT |
Amount Per Defined Units (amount multiplied by defined units) |
Apply amounts to units based on the driver definition for the units that the coordinator defined. |
Available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning, but the coordinator can define no defaults for the starting balance. |
ANN% |
Annual Growth Percentage On History |
Apply an annual percent increase for building proposed budget amounts based on the historical criteria that you select. |
Available for bottom-up and top-down scenario types. It can be used for balance sheet planning, but starting balance will reflect the analysis base chosen and the percentage applied will not update this value. |
ASSET |
From Asset Budgeting |
Specifies that the data from the row that you selected is carried into a line item from the detailed asset budgeting activity. |
Available for bottom-up scenario types when preparing capital plans. This method is used when a line item relationship to an asset budgeting activity exists. |
BASBUD |
Base Budget Amount |
Represents the seeded budget based on the history or scenario that you select as the data source to build the proposed budget. It can include multiple data sources, and incremental percent increases or decreases that you applied to each source. |
This is the default method and is available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning, but starting balance depends on a data source being available. |
DISTR |
Distributions |
Distribute constant amounts defined by the coordinator for planning centers using the driver lookup tables. |
Available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning, but the coordinator can define no defaults for the starting balance. |
ECODRV |
Economic Driver On History |
Associate a specific driver value, such as inflation, with line items. |
Available for bottom-up and top-down scenario types. It can be used for balance sheet planning, but starting balance will reflect the analysis base chosen and the percentage applied will not update this value. |
FLEX |
Flexible Formula |
Represents derived amount that comes from a defined flexible formula. |
Available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning. |
ITM |
Itemization |
Define a list of items associated with an account. |
Available for bottom-up, top-down, and forecast scenario types. It can also be used for balance sheet planning. |
JOIN |
AMTUNT multiplied by UNTAMT |
Combines the amount and cost drivers that are defined by the coordinator for the AMTUNT and the UNTAMT methods. |
Available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning, but the coordinator can define no defaults for starting balance. |
LINEITEM |
From Line Item Budgeting |
Represents interface values that are coming from related line item type activities (Includes Data From relationship). |
Available for bottom-up, top-down, and forecast scenario types. This method is used when a line item relationship to another line item activity exits. |
METH=0 |
Zero Method Amount |
Zero out values for the proposed budget or plan. |
Available for bottom-up, top-down, and forecast scenario types. |
PER% |
Period Growth Percentage On History |
Apply different percent increases by period rather than applying one annual percentage to all periods. Note: If you map a quarterly source scenario to an annual target scenario, then the PER% method applies the incremental % to the sum of the four quarters. |
Available for bottom-up and top-down scenario types. It can be used for balance sheet planning, but starting balance will reflect the analysis base chosen and the percentage applied will not update this value. |
POSBUD |
From Position Budgeting |
Specifies that the data from the row that you selected is carried into a line item from the detailed position budgeting activity. |
Available for bottom-up scenario types when preparing detailed position plans. This method is used when a line item relationship to a position budgeting activity exists. |
RELATE |
Related to an Account or Statistical Code |
Associate an account with a monetary or statistical amount and calculate a value using an amount or percentage. |
Available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning, but the coordinator can define no defaults for starting balance. |
UNTAMT |
Units Per Defined Amount (units multiplied by defined amounts) |
Apply units to the cost based on the driver definition for the amount that the coordinator defined. |
Available for bottom-up, top-down, and forecast scenario types. It can be used for balance sheet planning, but the coordinator can define no defaults for starting balance. |
Note: When using an activity defined to include balance sheet planning, the coordinator cannot assign a default value (or driver value) for the starting balance. But for those methods that allow the starting balance to be available, the end user can enter an amount when override is allowed by the coordinator.
The following methods are not supported with forecast scenario types: AMTFTE, AMTHC, POSBUD, ANN%, PER%, ECODRV, and ASSETS.
The following methods are not supported with top-down scenario types: AMTFTE, AMTHC, POSBUD, and ASSETS.
Planning models that are defined as project budgeting types, as indicated by the scenario group, do not use the following methods: AMTFTE, AMTHC, POSBUD, and ASSETS.
When you set up methods for the planning model you need to:
(Optional) Modify method names.
(Optional) Define driver lookup tables so that you can have variables by planning center associated with drivers.
Define method groups that can be associated with line-item activity scenarios.
Specify driver default values and lookup tables that are used for a method group.
Understanding Method Drivers
Methods that require a system calculation use method drivers. A method driver is the calculation factor that is used in the algorithm of the method. You define method driver defaults that are used during line item budgeting. You can also enable override of the driver defaults when you set up line-item activity scenarios in the planning model.
You can also establish driver lookup tables that enable budget preparers to select alternate drivers; these alternate drivers reference values on defined planning centers. Define drivers for those methods that require them. For example, when you associate a lookup table with a driver, the system retrieves the driver parameter for the planning center from an established lookup table. If the system cannot locate a lookup value for the planning center, it uses the established default amount for the method driver.
Method Driver |
Method Driver Name |
---|---|
BCFTE |
Driver for Planning (Budget) Center Amount Per Full-time equivalent |
BCHC |
Driver for Planning (Budget) Center Amount Per Headcount |
BUFTE |
Driver for Business Unit Amount Per Full-time equivalent |
BUHC |
Driver for Business Unit Amount Per Headcount |
QTYXCOST |
Driver for ITM (itemization) method, in which the number of units is multiplied by a cost per unit for a calculated amount for an item |
PERSUM |
Driver for ITM (itemization) method, in which you enter the total amount for an item |
Note: The system does not display the QTYXCOST and PERSUM method drivers for the ITM (itemization) method when you define the Method Driver page in the group. Instead, these specific method values are available to you only on the Itemization Method detail page in the line item activity during budgeting.
When you define the default driver parameters that are required for certain method drivers, you can also define a driver lookup table that enables the budget coordinator to define different driver values based on planning center.
When you define method drivers and driver lookup tables, determine the number of decimal positions that the system uses to calculate the method amount during line item budgeting. Use statistical drivers that have values defined up to eight decimal positions, or use monetary drivers that have values defined by the associated currency code definition. The system uses the method driver definition, or driver ID, to determine the number of decimal positions that are used to calculate the method amount during line item budgeting regardless of the definition that is used for the driver-lookup table definition. If you want the system to use eight decimal positions during method amount calculations, use a driver ID that is defined as a statistical driver.
Planning Method Page
Use the Planning Method page (BP_MTHD) to modify a planning method name and view method attributes.
Method Driver Page
Use the Method Driver page (BP_MTHD_DRV) to define method drivers.
Driver Lookup Tables Page
Use the Driver Lookup Tables page (BP_DIST_TYP) to define driver lookup tables and assign or distribute amounts to planning centers.
Driver Lookup Details Page
Use the Driver Lookup Details page (BP_DIST_DRV_PER) to create or modify the driver lookup table details by planning centers and period.
Image: Driver Lookup Details page (1 of 2)
This example illustrates the fields and controls on the Driver Lookup Details page (1 of 2). You can find definitions for the fields and controls later on this page.
Image: Driver Lookup Details page (2 of 2)
This example illustrates the fields and controls on the Driver Lookup Details page (2 of 2). You can find definitions for the fields and controls later on this page.
Planning Method Group Page
Use the Planning Method Group page (BP_MTHD_GROUP) to group the methods, method drivers, driver lookup tables, and driver parameters to be used by line item activities.
Image: Planning Method Group page
This example illustrates the fields and controls on the Planning Method Group page. You can find definitions for the fields and controls later on this page.
Note: The planning type that you define for the scenario affects the use of methods within an activity scenario in the planning model. For example, if you select all method IDs, certain methods are unavailable for the forecast planning types. This means that for the activity scenario for a planning model, the system displays only the appropriate methods (on the Define Method default page), not all available methods.
Copy Method Group Page
Use the Copy Method Group page (BP_MTHDGRP_COPY) to copy a planning method group.
Image: Copy Method Group page
This example illustrates the fields and controls on the Copy Method Group page. You can find definitions for the fields and controls later on this page.
Source
Target
Method Drivers Page
Use the Method Drivers page (BP_MTHD_DRVR_GROUP) to define a method's drivers, driver parameters, and lookup ID.
Image: Method Drivers page
This example illustrates the fields and controls on the Method Drivers page. You can find definitions for the fields and controls later on this page.
Note: The fields that appear in the Method Drivers Details group box depend on the selected method ID.