Understanding Growth Patterns

You use growth patterns to specify the amount or percent of increase that you want the system to apply to revenue and expense accounts when it calculates budget amounts.

You assign growth pattern types (UDC table 14/GP) to growth pattern codes to identify budget amounts as fixed amounts or percentages. For example, if you enter a growth amount of 1.00, the system:

• Adds 1 to the account balance, if you use a growth pattern type of FIX (fixed amounts).

• Multiplies the account balance by 1.01, which is equivalent to multiplying the account balance by one percent and adding that result to the account balance, if you use a growth pattern type of PCT (percentage).

You can specify different fixed amounts or percentage amounts for each year for up to 15 years for a growth pattern. The system compounds the growth amounts that you enter for each year. For example, if you enter a percentage growth pattern and specify 1.0 for year 1 and 2.0 for year 2, the system multiplies the account balance by 1.01 the first year and then multiples that amount by 1.02 the following year (for a total of 3.02 percent).

After you set up growth pattern codes, you assign them to business units and specify a revision number. Using a revision number enables you to generate multiple budgets for the same business unit.

Growth pattern information is stored in the Forecast Growth Patterns table (F1406).