Oracle Project Budget Details

A budget is the estimated cost or revenue for a project or task. You track project status and performance by comparing budgeted amounts to actuals using reports and Project Status Inquiry.

Budget can be tracked at various levels like Top Task or Lowest Task level, Project level. Each budget can have detailed or summary information in the following areas, as appropriate for each project.

We can enter a budget for the duration of the project or tasks (also known as budget at completion), or you can enter time–phased budgets which contain budget amounts by time period. We can enter time–phased budgets at the project, top task, or lowest task levels by organization and then by expenditure category within that organization. The Budget Entry Method selected for each budget determines the duration of the budget.

We can have multiple Budget versions created for a project. Each budget has a draft, which is a working area for an in–process budget. The draft will not appear in any project status tracking inquiries or reports. (Note that draft is not a budget type, since any type of budget can have a draft.) For each budget, you can create and save many budget versions. Each time you baseline a draft, you create a new version. To help identify budget versions, you can give each version a unique name and specify a change reason. You can view summary and detail information for all budget versions.

Each budget version has one of the following classifications:

Original Budget: The first time you baseline a draft, the version is marked as the Original Budget.

Revised Original Budget: You may need to revise your Original Budget due to budget entry errors or changes in the project scope. When you baseline a draft, you can identify the new baselined version as a Revised Original. In calculations and displays that use the Original Budget, the most recent Revised Original is used (or the Original Budget, if there is no Revised Original).

Current Budget: The most recent baselined version of the budget is the Current Budget. You can have only one Current Budget for each budget type. Current Budget amounts are shown in the Project Status Inquiry window.

Historical Baselined Versions: Any baselined budget that is not the Current Budget is considered an historical version of the

Budget.

Budget types identify the different kinds of budgets that you enter for your projects. For cost budget types, you can enter quantities, raw cost, and burdened costs. For budget using revenue budget types, you can enter quantities and revenue amounts.

Oracle Projects predefines four budget types:

·         Approved Cost Budget

·         Approved Revenue Budget

·         Forecast Cost Budget

·         Forecast Revenue Budget

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Budget Creation-Cost Budget

Navigate: Budgets

1.                                       Choose the project for which you want to enter or revise budget amounts.

2.                                       Choose the budget type. The budget type field enables you to have more than one series of budgets for a project. The budget type determines whether the budget is a revenue budget or cost budget. 

3.                                       Version Name: Enter the version name.

4.                                       Budget Status :The budget status will be displayed, indicating where the budget is  In the working/submission/baselining process.

5.                                       Change Reason: Enter a change reason. The change reason identifies the reason for changing a budget version from a previous version.

6.                                        Budget Entry Method You can accept or override the default budget entry method (BEM), which determines the level of detail for the budget.  If you are entering the first draft for the budget type, the default BEM is determined by the project type of the project.  If a prior version of the budget type exists, the default BEM is the budget entry method of the project’s current budget for the budget type.

7.                                       Resource List: The resource list is the set of resources that can be used as budget categories for a categorized (detail) budget. These resources will be displayed on the list of values for resource when you are entering budget lines.

8.                                       Choose the Details button to open the Budget Lines window.

1.      Select the Resource against which you want to budget

2.      Select the Amount Type, amount types are dependant upon the Resource selection.

If you are entering a project level budget, the Budget Lines window will open. If you are entering a task level budget, the Task Budgets window will open. Select a task, and then choose Budget Lines to open the Budget Lines window.

If you are entering a budget that is period–phased (time–phased by PA period or GL period), the matrix entry Budget Lines window will be displayed for budget lines entry. The matrix entry window opens automatically when you navigate to the Budget Lines window for a period–phased budget. The type of time–phasing of the budget is determined by the Budget

Entry Method selected for the budget.

When you complete budget entry, you need to submit your draft budget to indicate that it is ready for review and baselining.

Baselining is the process of approving a budget for use in reporting and accounting. When the baselining function is called, the system copies the draft amounts into a new baselined budget

Version. The most recent baselined version is named the Current Budget, which is used for reporting. All previously baselined budgets are historical baselined versions. The Current Budget, and all other baselined budget versions, has a status of Baselined.