Understanding Fiscal Year Budgets in PeopleSoft Human Resources

Budget-Related Processes

The system uses the budget information that you set up when it processes encumbrances and when it distributes payroll actuals:

• The Batch Encumbrance Calculation process (ENC_CALC) calculates encumbrances and the Encumbrance GL Interface (PAYGL03) process sends that encumbrance data to the PeopleSoft General Ledger / Commitment Control for budget validation.

• Real-time budget checking calculates encumbrance data and send to PeopleSoft Commitment Control for immediate validation.

• The Actuals Distribution process distributes payroll actuals (earnings, taxes, and benefits) across the funding sources you set up on the Department Budget components (DEPT_BUDGET or DEPT_BUDGET_CN).

Budget Creation

Create or establish budgets by leveraging data between PeopleSoft HRMS and PeopleSoft General Ledger or PeopleSoft Budgets. Alternatively, use one of the template processes delivered with your system to populate the budget tables with data already in PeopleSoft HRMS.

Budget Levels

With PeopleSoft HRMS, establish budgets at the following levels (budget levels aren't mutually exclusive):

• Department

• Position pool

• Positions

• Appointment

• Job code

Depending on how you manage encumbrances and distributions for your organization, you can specify whether to steer your budgets using Position Management. If you use Position Management, you'll tie budgets to positions, to groups of positions (called Position Pool), or to appointments. If you're not using Position Management, you'll set up budgets to work at the job code level or at the appointment level.

Once you've established budgeting levels, link earnings, deductions, and tax budget items to multiple funding sources. Also specify the sequence in which the system uses the funds.

Option 1: Using the Data Import From Budgets Process

Use the Data Import From Budgets process (BUD008.SQR) if you have set up a fiscal year budget in PeopleSoft Budgets and want to use it as a basis for your commitment accounting fiscal year budget. Modify each individual department budget in the Department Budget Table after you have downloaded it, if necessary.

See Option 1. Using the Data Import From Budgets Process.

Option 2: Using the Build Current FY Budget Process

Use the Build Current FY Budget (build current fiscal year budget) process to build your current fiscal year budget. PeopleSoft delivers this process as a template that you use to establish budget information in your human resources system.

Because this is a template, you might have to modify it to meet the requirements of your organization. After you build your current fiscal year budget, modify each individual department budget in the Department Budget Table, if necessary.

See Option 2: Using the Build Current FY Budget Process.

Option 3: Using the Copy Prior Fiscal Year Budget Process

Use the Copy Prior FY Budget (copy prior fiscal year budget) process to generate a new annual budget using last year's budget information. PeopleSoft delivers this process as a template that you use to establish budget information in your human resources system.

Because this is a template, you might have to modify it to meet the requirements of your organization. After you copy the prior current fiscal year budget, modify each individual department budget in the Department Budget Table, if necessary.

See Option 3: Using the Copy Prior Fiscal Year Budget Process.

Option 4: Using the Department Budget Table Component

Use the Department Budget Table component to manually create annual department budgets.

See Option 4: Using the Department Budget Table Component.

Funding End Date Processing

Using a funding end date that is not tied to the fiscal year enables you to create encumbrances and pre-encumbrances for the entire length of a funding source, even when that time frame stops before the end of the fiscal year or extends into subsequent fiscal years.

When creating multiyear encumbrances, the system generates separate accounting line entries for each fiscal year. If you are not using commitment control, the accounting posting date that you enter when you run the Encumbrance GL Interface process is used as the budget date for both current and future fiscal year entries. If you are using commitment control, the begin date of next pay period is used as the budget date for current fiscal year entries, and the fiscal year begin date is used as the budget date for subsequent fiscal years entries.

If you do not specify a funding end date for a particular funding source, the system creates encumbrances only through the end of the current fiscal year. The funding source does not specifically expire at the end of the year, and it will continue to be available for subsequent fiscal years when you build the budget using the Copy Prior Fiscal Year Budget Process.

Encumbrance definitions, where you specify the percent of earnings to encumber for taxes and deductions, also have a funding end date. For the current fiscal year, fringe encumbrances can extend beyond the funding end date of the earnings on which they are based. However, for future fiscal years, fringe encumbrances are not created beyond the funding end date for earnings, even if the encumbrance definition has a later funding end date than the earnings on which the fringe encumbrances are based.

Default Funding End Date

You can optionally set up a default funding end date for the funding source (that is, for a particular combination code). In the Department Budget Table component, you use the Funding End Date Defaults From Funding Source indicator to indicate whether the system should populate funding end dates using the default for the funding source. The default is applied at all department budget funding levels and in encumbrance definitions, though you can override it as needed.

This is how the system applies the default funding end date when you create your budget using an automated process:

• Option 1: Data Import from Budgets: This process looks up the department's Funding End Date Defaults from Funding Source setting from the prior fiscal year. If the check box is selected, then the process uses the default funding end date.

• Option 2: Build Current FY Budget: If you have defined funding end dates for at least one funding source, this process sets the Funding End Date Defaults From Funding Source indicator to yes for all budget levels, then uses the default funding end dates for all funding sources that have them.

• Option 3: Copy Prior Fiscal Year Budget: This process sets funding end dates based on both the default funding end date for the funding source and on the funding end dates in the prior year budget:

  • The process does not copy prior fiscal year rows where the funding end date is earlier than or the same as the last day of the prior fiscal year.

  • In prior fiscal year rows where the funding end date is later than the last day of the prior fiscal year, the process keeps the same funding end dates in the new fiscal year budget.

  • In rows where no funding end date is specified for the prior fiscal year, the process checks the Funding End Date Defaults From Funding Source indicator to determine whether to use the default funding end date for the funding source or create the row with no funding end date.