Budgeting – Parameters

Budgeting Parameters setup is used to optionally enable budget transfers, select the budget journal for budget appropriations and to specify options for revenue budgets and subledger budget transfers.

The parameter settings on the Budget section relate to three separate functional areas as detailed below

Budget Transfers

Use rules for budget transfers … select this option to enable budget transfer rules to verify budget register entries that are used to transfer budget funds.

Cash Flow Forecasts

Two of the parameters shown above are associated with the cash flow forecasting capability

Allocation Key … this setting determines how the amount for a budget account entry is allocated in a cash flow forecast.

It’s a default value used to calculate amounts based on a distribution you will define in the selected ‘period allocation category’. For example you can define seasonality or interruption in periods (Jan = 10%, Feb = 20%, March = 10%, April = 40%…)

Budget Journal … this setting is only relevant if ‘enable budget appropriation’ is selected in the General Ledger Parameters page, which in itself is dependent upon the ‘use posting definitions’ option in GL Parameters first being selected and which requires the creation of posting definitions and transaction posting definitions.

Once that setup is in place, when you enter a budget register entry for one of the accounts or financial dimension combinations that are used in the match criteria of the posting definition, a voucher is created in the general ledger for the generated entry from the posting definition. The generated entry uses the journal number from the selected budget journal.

Public Sector

Display Legacy Budget Analysis Enquiry … is a legacy, public sector capability specific enquiry

Check Revenue Budget for Zero Budget

Select one of the following options if a budget register entry will cause a revenue budget to go lower than zero.

• None … to allow a revenue budget to go lower than zero.
• Provide Warnings … to allow a revenue budget to go lower than zero, but provide a warning.
• Prevent budget update … to prevent a revenue budget from going lower than zero.

Time Period for Budget Balances

Select a time period (financial period, accounting year, accounting year to date) for revenue budget balances to aggregate for budget checking.

The budget check is performed only when Provide warnings or Prevent budget update is selected in the Check revenue budget for zero budget balances field

Note: the Completed Budget Register Entries parameters shown in the screenshot below will be disabled in the event that Budget Control is setup and activated.

The Fixed Assets, Project Management & Accounting and Master Planning modules each include their own module specific budgeting and / or forecasting capabilities

Project forecasts, Fixed Asset budgets, Demand forecasts and Supply forecasts can be optionally utilised as a data source to create financial budget plan / budget register entry values.

These parameters influence whether resulting budget plan / budget register entries are created in a draft state, if set to No, or in a completed state, if set to ‘Yes’.

All of the Budgeting Parameters highlighted in the screenshot below are Public Sector specific and as such should only be considered by public sector organisations.