Setting Up Budgets in PeopleSoft Project Costing

This topic discusses how to define budget alert thresholds.

Pages Used to Set Up Budgets in PeopleSoft Project Costing

Page Name	Definition Name	Navigation	Usage
Installation Options - Project Costing	INSTALLATION_PC	select Setup Financials/Supply Chain, then select Install, then select Installation Options, then select Project Costing	Enable projects budgeting, and establish the default settings for the budget calendar, periods, and analysis groups. If you use PeopleSoft Program Management, enable users to choose the general ledger business unit and department distribution for budget detail rows.
Budget Items	PC_BUD_ITEMS	select Setup Financials/Supply Chain, then select Product Related, then select Project Costing, then select General Options, then select Budget Items, then select Budget Items	Define and modify budget items.
Project Costing Options - Budget Alerts (business unit)	PC_BUD_BU_ALERTS	select Setup Financials/Supply Chain, then select Business Unit Related, then select Project Costing, then select Project Costing Options, then select Budget Alerts	Define cost budget alert thresholds that appear as default settings for all project budgets that belong to the business unit.
Project Definitions - Budget Alerts	PC_BUD_PROJ_ALERTS	select Project Costing, then select Project Definitions, then select General Information, then select Budget Alerts	Define cost budget alert thresholds at the project level to alert the project manager when costs exceed the specified threshold.
Budget Alerts (activity)	PC_BUD_ACT_ALERTS	select Project Costing, then select Activity Definitions, then select General Information, then select Budget Alerts	Define cost budget alert thresholds to alert the project manager for potential cost overruns at the activity level.

Project Costing Options - Budget Alerts (business unit) Page

Use the Project Costing Options - Budget Alerts (business unit) page (PC_BUD_BU_ALERTS) to define cost budget alert thresholds that appear as default settings for all project budgets that belong to the business unit.

Navigation

select Setup Financials/Supply Chain, then select Business Unit Related, then select Project Costing, then select Project Costing Options, then select Budget Alerts

Note: There are three Budget Alerts pages in Project Costing—one at the business unit level, project level, and activity level. The navigation path to these pages is based on whether you are defining the budget alert thresholds for the business unit, project, or activity. The field definitions that appear in this topic apply to all three pages.

Image: Budget Alerts page (Percentage calculation type)

This example illustrates the fields and controls on the Budget Alerts page (Percentage calculation type). You can find definitions for the fields and controls later on this page.

Image: Budget Alerts page (Remaining Amount calculation type)

This example illustrates the fields and controls on the Budget Alerts page (Remaining Amount calculation type). You can find definitions for the fields and controls later on this page.

Calculation Type

Select the method for calculating how the budget alert threshold is determined. Available options are:

Percentage (Actual vs. Budget):Triggers the budget alert when the actual cost of the project reaches the defined percentage (entered in the Percentage field) of the budgeted amount. The calculation for this type of budget alert threshold is: (Actual Costs) ÷ (Budget Amount) x 100 ≥ (Percentage field value)

Remaining Amount: Triggers the budget alert when the actual cost of the project reaches the defined remaining amount (entered in the Amount field) of the budgeted amount. The calculation for this type of budget alert threshold is: (Budget Amount) – (Actual Costs) ≤ (Amount field value)

Alert Type

Select the level of alert that you are defining. Available options are:

Medium: Visual status indicator appears as an inverted yellow triangle on the Budget vs. Actual page.

High: Visual status indicator appears as a red square on the Budget vs. Actual page.

A Low visual status indicator appears as a green circle on the Budget vs. Actual page if actual costs have not reached the medium or high thresholds, or if you do not define budget alert thresholds.

Operation

Displays the operand that the system uses to define the calculation that determines the budget alert threshold.

<= (less than or equal to): Appears when you select Remaining Amount as the calculation type.

>= (greater than or equal to): Appears when you select Percentage (Actual vs. Budget) as the calculation type.

This field is not editable.

Percentage

Enter the percentage of the budget that triggers the budget alert. This field appears only if you select Percentage (Actual vs. Budget) as the calculation type.

Amount

Enter the monetary amount of the budget that triggers the budget alert. This field appears only if you select Remaining Amount as the calculation type.

Copy to Activities

Select to use these values as default settings at the activity-level when you create new activities for the project. This field appears only on the Project Definitions - Budget Alerts page.