Bottom-up Project Budgeting

After you create a detailed WBS and budget plan in Project Costing, you can create budget details by estimating amounts by period for budget items and rolling up the amounts to the activity and project levels.

For example, you can enter revised period budget amounts at the budget item level, which roll up to the activity level. If the sum of the revised budget item amounts is different than the previous activity budget amount, you can override the previous activity budget amount. The sum of the revised activity budget amounts rolls up automatically to the project level.

Calculate Budget Amount Based on Employee, Job Code, or Project Role

You have the option to calculate period budget amounts by selecting a rate by employee, job code, or project role. You can enter a quantity, unit of measure, and rate calculation basis for a period, and the system calculates the period budget amounts that roll up to the budget item, activity, and project level.

The Calculate Amount From Quantity feature performs in a similar manner as a worksheet. For example, assume that you want to calculate the budget amount for 100 hours of labor by using predefined rates. First you want to view the calculations based on employee, job code, and project role rates, after which you will determine which rate to use. These are the typical steps to accomplish this scenario:

1. On the Project Budget Items - Adjust Budget Items page, add the labor budget item to the project activity.

2. On the Project Budget Periods - Adjust Budget Periods page:

   1. Select the Adjust by Amount spread option.

   2. Enter a quantity of 100 and unit of measure of work hours for a budget period.

   3. Click the Calculate Amount button to access the Calculate Amount From Quantity page.

3. To view the calculation by employee rate:

   1. Select a rate calculation basis of Employee ID on the Calculate Amount From Quantity page.

   2. Select a specific employee ID from the list of available employees.

   3. Click OK to return to the Project Budget Periods - Adjust Budget Periods page and view the calculated budget amount.

4. To view the calculations by job code or project role rates:

   1. Click the Calculate Amount button again to return to the Calculate Amount From Quantity page.

   2. Select the rate calculation basis, select the detail row, and click OK to return to the Project Budget Periods - Adjust Budget Periods page.

      The system clears the previous calculated amount and displays the new results. Repeat this process as many times as needed for each period row.

5. When you reach the desired the budget adjustments, click Distribute Budget to update the distributed budget and target budget amounts.

Distribute Costs to Budgets Process in Program Management

If you use PeopleSoft Program Management, you can generate a bottom-up project cost and revenue budget from the amounts defined on the Resources by Activity page. You can click the Get Plan button on the Budget Plan page to trigger the Distribute Costs to Budgets Application Engine process (PGM_SPREAD). This process creates budget detail rows based on activity resource amounts. If the budget plan has a cost budget type, the cost amounts from the Resources by Activity page are used for the detail budget rows. If the budget plan has a revenue budget type, the bill amounts from the Resources by Activity page are used for the detail budget rows.

See PeopleSoft Program Management: Understanding Cost and Revenue Budget Generation.