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A budget is the estimated cost or revenue for a project or task, and is used as a tool to track actual performance.
Oracle Projects provides the ability to budget at the project level, as well as the lowest level task. Budgets can be time-phased by Project Accounting Periods, General Ledger Periods or for a specific date range. Budgets can be at a summary level, or for specific categories of cost and revenue types.
Many different budget types can be created in addition to the system defined Approved Revenue budget and Approved Cost budget. User defined budget types can be incorporated in reporting and on line viewing via the Project Status Inquiry if appropriate custom definitions are created. Oracle defined reports and on-line applications do not use any budget other than the approved cost and revenue budgets.
When a project is copied from a template or another project, the budgets are automatically copied from the source project or template to the new project.
<![if !supportLists]>· <![endif]>Templates that have baselined budgets will copy to the new project as a baselined budget.
<![if !supportLists]>· <![endif]>Projects that have baselined budgets will not copy to the new project as a baselined budget.
Step 1.0 Cost Budgets
Navigate to:
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Budgets
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Project Number:
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Enter the Project Number for which a budget is being created. OR
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Project Name:
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Enter the Project Name for which a budget is being created.
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Budget Type:
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Use the List of Values to choose the Approved Cost Budget Type.
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Select:
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Find Draft
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Version Name:
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Enter appropriate Version of the budget.
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Change Reason:
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Optional - Select from list of values.
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Description:
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Enter a short description, describing your budget.
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Entry Method/ Resource List:
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Verify that the Entry Method/ Resource List is appropriate for the new budget. A new Entry Method/ Resource List may be selected, but the existing definition will then be deleted. The Entry Method/ Resource List defaults from the Project Type setup.
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Status:
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If the budget has not been “Submitted” or “Baselined”, the budget will have a “Working” Status
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New Original:
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If the budget is the first, the New Original field will be enabled
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Step 1.2 Enter Cost Budget details
Decide on the level of detail needed for tracking cost on a specific project. The Budget Entry Method selected determines the following Budget attributes:
<![if !supportLists]>1) <![endif]>Budget Entry Level - Project, Top task, Lowest task or Top and Lowest Task level.
<![if !supportLists]>2) <![endif]>Time–phase - Specified Date range, GL period, PA Period or None.
If the amounts are not entered by period, Oracle assumes an even division of the budget over the period of the project or task.
<![if !supportLists]>3) <![endif]>Detail of budget - Summary budget line or budget lines Categorized by resources.
<![if !supportLists]>4) <![endif]>Amount Types – Quantity, Raw Cost and/or Burdened Cost entry.
The Resource Lists selection and the way in which Resource Lists are defined will also have an impact on the level of detail.
A more detailed budget allows more detail in status tracking and exception analysis. A detailed budget requires more time and effort to plan, create, enter, and maintain the budget amounts, but can provide valuable insight into the project status.
The next form that will be displayed depends on the Budget Entry Method.
If Task level budget entry has been selected, the displayed form (See next) will show the totals for each task. Budget values will have to be entered on an additional Task level form (See Budget Lines form).
Select:
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Details
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If Project level budget entry has been selected, the above form will not be displayed. The application will display the Budget Line form (See below).
Select:
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Budget Lines
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This example: Budget Attributes for Budget Entry Method – By lowest task, PA period:
Budget Entry Level:
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Lowest Task
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Time–phase:
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PA Period
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Detail of budget:
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Resource List
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Amount Types:
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All Cost Amount Types
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This example: Budget Attributes for selected Resource List:
Resource Groups:
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LABOR & EXPENSES
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Resources:
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Employees and Expenditure Types
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Resource:
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Using the list of values to select the appropriate resource/resource group for the budget line. Available values will depend on the Resource List setup. You cannot budget simultaneously for Resource Groups and Resources belonging to that same Resource group.
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Amount Type:
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Choose between Quantity, Raw Cost and Burdened Cost
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Value:
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Enter budget Value in appropriate column/ period
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Select:
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Up/Down arrows at the top of the form to navigate between tasks. Enter budget values for all appropriate Tasks.
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Navigate:
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Close Form/s and return to the Initial budget form
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Select:
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Submit
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Once the budget has been submitted, the status has changed to ‘Submitted’. No additional changes are allowed to a Submitted budget. If a need to modify the budget is identified at this point, select Rework to change the status back. Changes are then allowed.
Step 2.4 Baseline Approved Cost Budget
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Select:
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Baseline
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After the manager approves the budget, select Baseline to complete the budget approval process. Submit and Baseline processes check a number of items. If errors are identified, resolve the item and re-perform the process.
When a budget is baselined, the history button becomes available. PA keeps a record of all previous baselined budgets and they can be reviewed by selecting them in the history area.
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Select:
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History
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Step 2.0 Revenue Budgets
Project Accounting requires a revenue budget be created and baselined for all contract projects before generating any Revenues or Invoices. The revenue budget amount must equal the project’s funding agreement in order for the budget to be ‘Baselined’. In addition, if the contract project has a distribution rule of “Cost”, an approved cost budget must also be submitted and baselined prior to being able to baseline an Approved Revenue budget.
Navigate to:
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Budgets
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Project Number:
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Enter the Project Number for which a budget is being created. OR
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Project Name:
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Enter the Project Name for which a budget is being created.
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Budget Type:
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Use the List of Values to choose the Approved Revenue Budget Type.
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Select:
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Find Draft
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Version Name:
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Enter an appropriate Version name/number for your budget.
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Change Reason:
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Optional - Select from list of values.
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Description:
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Enter a short description, describing your budget.
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Entry Method/ Resource List:
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Verify that the Entry Method/Resource List is appropriate for the new budget. A new Entry Method/ Resource List may be selected, but the existing definition will then be deleted.
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Status:
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If the budget has not been “Submitted” or “Baselined”, the budget will have a “Working” Status
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New Original:
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If the budget is the first for the project, the New Original field will be enabled
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Decide on the level of detail needed for tracking revenue on a specific project. The Budget Entry Method selected determines the following Budget attributes:
<![if !supportLists]>1) <![endif]>Budget Entry Level - Project, Top task, Lowest task or Top and Lowest Task level.
<![if !supportLists]>2) <![endif]>Time–phase - Specified Date range, GL period, PA Period or None.
If the amounts are not entered by period, Oracle assumes an even division of the budget over the period of the project or task.
<![if !supportLists]>3) <![endif]>Detail of budget - Summary budget line or budget lines Categorized by resources.
<![if !supportLists]>4) <![endif]>Amount Types – Quantity (UOM for Resource) and/or Revenue entry.
The Resource Lists selection and the way in which Resource Lists are defined will also have an impact on the level of detail.
A more detailed budget allows more detail in status tracking and exception analysis. A detailed budget requires more time and effort to plan, create, enter, and maintain the budget amounts, but can provide valuable insight into the project status.
The next form that will be displayed depends on the Budget Entry Method.
If Task level budget entry has been selected, the displayed form will show the totals for each task. Budget values will have to be entered on an additional Task level form (See Budget Lines form).
If Project Level budget entry has been selected, the displayed form will be for entering the Budget Line values.
Select:
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Details
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This Example: Budget Attributes for Budget Entry Method – Project level, GL period:
Budget Entry Level:
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Project
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Time–phase:
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GL Period
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Detail of budget:
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Summarized
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Amount Types:
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All Revenue Amount Types
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Resource:
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Default value None
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Amount Type:
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For Revenue budget types choose between Quantity and Revenue. The Unit of measure will depend on the Resource
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Value:
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Enter a budget Value in the appropriate column/period
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Navigate:
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Close Form and return to the Initial budget form
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No changes are allowed to a Submitted budget. If a need to modify the budget is identified after a budget was submitted, select Rework to change the status back to Working. Changes are then allowed.
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Select:
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Submit
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When the budget is ready, select Baseline to complete the budget approval process. Submit and Baseline processes check a number of items. If errors are identified, resolve the item and continue the process.
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Select:
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Baseline
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Step 2.5 Review Budget History
When a budget is baselined, the history button becomes available. PA keeps a record of previous baselined budgets and they can be reviewed by selecting them in the history area.
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Select:
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History
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