Understanding Position Budget Definitions

You define position budgets to establish, monitor, and control budgets for employee position assignments. In the same way that a project manager allocates time and material resources for a special project, the organization can create position budgets for its employee resources. For each position, the organization plans for and manages these components:

• Salary expenditures

• Hours worked

• Full time equivalents (FTEs)

• Headcount (number of employees)

When you define a position budget, the system updates the Position Master table (F08101).

You can define the position budgets manually; or you can let the system automatically define them for you, based on the job and employee information that you have already entered into the system.

When defining a position budget, complete these steps:

1. Identify the need for one or more employees.

2. Approve the need for the employees.

3. Set up a budget for the employee salary and hours worked.

4. Assign the appropriate FTEs and headcount to the position.

5. Monitor hiring to ensure that you do not exceed the position budget.

For each fiscal year, you can define only one position budget for each position ID within a particular business unit. However, you can use the budgeted FTE to budget for more than one employee to be assigned to a particular position ID (identification).

After you activate the appropriate system options and create the position budgets, the system automatically creates a position activity record whenever you enter a position ID for an employee. The system uses the values in the activity record to generate the projected year end values. The activity record includes these types of information:

• Employee.

• Assigned position.

• Date on which the employee was assigned to the position.

• Employee salary.

• Standard hours per year.

• FTE.

• Projected year end amounts for salary, FTE, hours, and headcount, based on assignment date.