End User Training

Budget Management

COURSE MODULES

Module I :

Budget Definition

Module II :

Manage Budget

Module III :

Generating Reports

Module I: Budget Definition

Top-down Budgeting
Top-down budgeting method will be used to track and monitor PPAs budgets
for COB, NAOB and NBA releases to RCs. Top-down budgeting is a method for
allocating and reporting budgets amounts where budget amounts are entered
to key accounts at the top level, then distribute those amounts among lowerlevel accounts. The Operating Budget for the entire company is entered to key
budgetary accounts at the top or corporate level, and then assigns budget
amounts among lower-level accounts. These allocations to lower levels and
consolidation should have been done during the budget preparation stage.
Only the approved budgets will then be uploaded to their respective budget in
the system.
To perform top-down budgeting a budget hierarchy will be created based on
PPAs budget control limits set for COB, NAOB and NBAs.

Module I: Budget Definition

Top-down Budgeting

Module I: Budget Definition

Budget Definition Create Budget Name (Navigation)
(Navigate: Budgets Define Budget)

Figure 1 - 1 Navigation Window

Module I: Budget Definition

Budget Definition Define Fields

Figure 1 - 2 Define Budget Window

Module I: Budget Definition

Budget Definition Create Organization
(Navigate: Budgets Define Organization)

Figure 1 - 3 Navigation Window

Module I: Budget Definition

Budget Definition Define Fields

Figure 1 - 4 Define Budget Organization Window

Module I: Budget Definition

Budget Definition - Ranges

Figure 1 - 5 : Account Ranges Window

Module I: Budget Definition

Budget Definition Control Options
3 Types of Control
None : No funds checks or reservation. If an account is not a budgetary
account, General Ledger assumes the budgetary control option of None for the
account.
Advisory : For online notification when transactions fail funds checking. The
system still reserves funds for transactions even when no funds are available.
Absolute : To prohibit RCs from reserving funds for a transaction unless funds
are available.
For PPA, the budgetary control that will be enforced for budgetary accounts is
Absolute for all Levels (COB, NAOB and NBA)

Module I: Budget Definition

Fund Checking

Fund checking is a budgetary control feature that will be used to prevent

overspending budgets by verifying available funds online before processing
a transaction.

With funds checking, transactions are verified online against available

budget, immediately updating funds available for approved transactions, and
control expenditures at the RC level, NAOB level and COB level. Below is
the funds available formula.

Funds Available = Budget Encumbrance Actual

For every budgetary accounts, the system will keep track of three balances;
Budget - from transactions entered via Budget Journal (GL)
Encumbrance - from transactions entered via Encumbrance Journal (PO, AP,
GL)
Actual from transactions entered via standard journals (sub modules and GL)

Module I: Budget Definition

Budgetary Control and Funds Checking Guidelines
Budgetary control will be setup at the NBA or RC transaction level to prevent RCs from
overspending their budget, at NAOB Level and COB Level
To check funds, the time interval will be setup as follows;
Amount Type - determines the cumulative balance to use for the funds checking
interval (Period to Date (PTD), QTD, YTD)
Boundary to define the end point of the interval (Period, Quarter, Year). Thus, if the
boundary is Period, any unutilized budget amount in the prior periods will be
automatically forwarded or available for use in the current period.
PPA Funds Check Level Matrix

Module I: Budget Definition

Run Budget - Hierarchy Listing

Module I: Budget Definition

Summary Accounts
Summary accounts are the backbone of the Master/Detail
budget feature of Oracle GL. Summary accounts will be used
to maintain master/detail budget relationships between
hierarchy levels. Since the Total Original Budget can not be
changed in the controlling master budget, Summary Accounts
will be used to store the summarization of the detail accounts
in the controlling budget. Monitoring of the funds available
(Budget Encumbrance Actual) is possible at the corporate
level without affecting the Total Original Budget.
Thus,
summary templates will be created for each master budget so
that accounts in the lower-level detail budgets roll up into the
same summary accounts as the detail accounts in the
controlling master budget. Summary accounts are system
generated and system will not allow users to enter and post
transactions to these accounts. Please refer to Section 2.4 for
related business rules:

Module I: Budget Definition

Summary Accounts
Prerequisite Setup:
1. Define Rollup Groups (OU, RC & ACCTS)
(Navigate: Setup Financials Flexfields Keys Groups)

Module I: Budget Definition

2. Define Parent Value per Budgetary Account and Assign Rollup Groups to
Parent Value (Navigate: Setup Financials Flexfields Key Values)

Module I: Budget Definition

4. Create Summary Template (Navigate: Setup Accounts Summary)

Module I: Budget Definition

5. Create Summary Template (Navigate: Setup Accounts Summary)

Module I: Budget Definition

6. Check Summary Accounts (Navigate: Inquiry Budget)

Module I: Budget Definition

Budget Upload

The Upload Budget is the process of uploading approved

COB and NAOB budgets using the excel templates designed
for
uploading.
The checking of control limits inherent to a Top-down
budgeting should have been prior to budget approval.
During budget upload, Oracle General Ledger will create
unposted budget journals.
User who uploaded the budget needs to run the Unposted
Budget Journal report to review what has been entered in the
system prior to posting.
These processes will be enforced in PPA to ensure that a
consistent set of policies and procedures are in place to meet the
requirements of budget uploading and releases once
budgets
are approved at the Corporate level and NAOB level.

Module I: Budget Definition

Release Budget

The Release Budget is the process of uploading approved NBA

budgets using the excel templates designed for uploading.

The checking of control limits inherent to a Top-down

budgeting should have been prior to budget approval.

During budget upload, Oracle General Ledger will create

unposted budget journals. User who uploaded the budget needs
to run the Unposted Budget Journal report to
review
what
has been entered in the system prior to posting.

These processes will be enforced in PPA to ensure that a

consistent set of policies and procedures are in place to meet the
requirements of budget uploading and releases once
budgets are
approved at the corporate level, NAOB level and NBA approved
releases level.

Module I: Budget Definition

1. Create Templates (COB,NAOB&NBA)
(Navigate: Application Desktop Create Document)
COB Template

Module I: Budget Definition

2. Create Templates (COB,NAOB&NBA)
(Navigate: Application Desktop Create Document)
NAOB Template

Module I: Budget Definition

3. Create Templates (COB,NAOB&NBA)
(Navigate: Application Desktop Create Document)
NBA Template

Module I: Budget Definition

Upload Budgets: From Excel Menu Toolbars: Oracle Upload

Module I: Budget Definition

Review Unposted Budget Journals (Navigate: Enter Journals)

Module I: Budget Definition

Review Entered (posted) Budget (Navigate: Budget Enter
Journals)

Module II: Manage Budget

Budget Transfer
Budget Transfer is used to perform reallocation or realignment
of Budget amounts from one account to another within budget
or between budgets. General Ledger automatically runs journal
import to create an unposted budget transfer journal batch.
When posted, the budget journal updates the budget balances.
HO-Budget Division will manually update the Excel Budget
Pack Approved NBA Planned Releases worksheet to reflect the
approved reallocation or realignment. RC will manually update
the Excel Budget Pack NBA Request for Releases worksheet
to allocate the approved reallocation or realignment.

Module II: Manage Budget

Budget Realignment/ Reallocation Scenarios
(Navigate: Budgets Enter Transfer)
1. Realignment of COB
. Transfer of budget within the same budgetary account

Figure 2 - 1 : Navigator Window

Module II: Manage Budget

Budget Realignment/ Reallocation Scenarios
(Navigate: Budgets Enter Transfer)
3. Reallocation of RC budget
. Transfer of budget between RCs involving the same budgetary
accounts

Figure 2 - 1 : Navigator Window

Module II: Manage Budget

Carrying Forward Year-End Encumbrance and Budget Balances
The Carry Forward Encumbrance will be used to forward yearend encumbrances and the corresponding budget amount
equal to year-end encumbrances into the following year.
The carry forward year-end encumbrance balances will not
create journal entries as a period activity but will be forwarded
as beginning balances. Thus, the balances brought forward
cannot be reversed.
Should there be a need to cancel a prior year encumbrance (eg.
Cancelled PO), the corresponding budget journal equal to the
cancelled encumbrance will have be to entered in Oracle GL to
prevent the budget of the prior year to be used in the current
budget year.

Module II: Manage Budget

Carry Forward Rules
Encumbrances Only
General Ledger determines the year-to-date encumbrance balances as
of the end of the fiscal year and carries forward those balances as the
beginning balances of the first period of the next fiscal year.

Encumbrances and Encumbered Budget

General Ledger determines the year-to-date encumbrance balances as
of the end of the fiscal year and carries forward those balances, plus
equivalent budget amounts, as beginning balances of the first period of
the next fiscal year.

Funds Available
General Ledger calculates funds available as year-to-date budget
balances less year-to-date actual and encumbrance balances. General
Ledger carries forward budget amounts equal to funds available at the
end of the fiscal year as beginning balances of the first period of the next
year.

Module II: Manage Budget

Carry Forward Rules - Sample

Module II: Manage Budget

To Carry forward:
Run report to Review purchase order and requisition
encumbrances Encumbrance Details Report in Oracle
Purchasing
Navigate: Journals Generate Carryforward

Figure 2 - 1 : Navigator Window

Module III: Generating Reports

Generate Budget Reports
Menu: View Requests

Figure 2 - 2 : Menu Window

Module III: Generating Reports

Generate Budget Reports
Navigate: Others Requests

Figure 2 - 3 : Navigation Window

Module II: Generating Reports

Generate Budget Reports

Figure 2 - 4 : Find Requests Window

Module II: Generating Reports

Generate Budget Reports

Figure 2 - 5 : Submit a New Request Window

Module II: Generating Reports

Generate Budget Reports

Figure 2 - 6 : Submit Request Window

Module II: Generating Reports

Generate Budget Reports

Figure 2 - 7 : Requests Window