GL Budgeting Student Guide

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GL Budgeting

Student Guide


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Revised: 7/13/05 Copyright 2004 University of Virginia and Oracle Corporation. All rights reserved. Effective: 5/3/04

GL Budgeting Table of Contentsi

Table of Contents

GL Budgeting - Introduction..........................................................................................................................1-1GL Budgeting - Introduction .........................................................................................................................1-2Overview .......................................................................................................................................................1-3

Overview .......................................................................................................................................................1-3Completing the Budget Accounting Cycle .......... ........... ........... .......... ........... ........... ........... ........... ........... ...1-4Completing the Budget Accounting Cycle .......... ........... ........... .......... ........... ........... ........... ........... ........... ...1-4Completing the Budget Accounting Cycle .......... ........... ........... .......... ........... ........... ........... ........... ........... ...1-5GL Budgeting - Planning Considerations......................................................................................................0-2Budgeting Tips and Techniques ....................................................................................................................0-4Budgeting Tips and Techniques ....................................................................................................................0-4

GL Budgeting - Planning Considerations......................................................................................................2-4

Reviewing and Updating Budgets ..................................................................................................................3-1Reviewing and Updating Budgets .................................................................................................................3-2Overview .......................................................................................................................................................3-3

Inquiry - Using Account Inquiry ...............................................................................................................3-4GL Budget - Reviewing Budget Inquiry....................................................................................................3-6GL Budget - Using Budget Inquiry ...........................................................................................................3-8

Budget Reports ..............................................................................................................................................3-9GL Budget - Budgets: Freezing.................................................................................................................3-10

Summary........................................................................................................................................................3-12


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GL Budgeting Table of Contentsii


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GL Budgeting - IntroductionChapter 1 - Page 1

GL Budgeting - Introduction

Chapter 1


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GL Budgeting - Introduction

Section Objectives

At the end of this section, you should be able to:

Create a budget

Define a budget organization

Enter budget amounts using different rules and methods

Use Budget Wizard to enter budget amounts in a spreadsheet

Upload budgets to General Ledger

Perform budget inquiry

Freeze budgets to prevent further modifications


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Overview

Budget estimated account balances for a specified range of periods. Then compare estimated

amounts with actual balances to determine variances.

Fiscal Year 2001Organization 20020

Actuals Budget Variance

Salaries 14,000 15,000 1,000

Supplies 4,000 3,500 (500)

Travel 1,500 1,700 200

TOTAL 19,500 20,200 700

Budgeting

General Ledger gives you a variety of tools to create, maintain, and track your budgets, including the

ability to upload budget amounts from an Excel spreadsheet.

Create an unlimited number of budgets or forecasts.

Control user access to budgets.

Create budget organizations to mirror the various levels of your companys organizationand to control user access to the budget information.

Structure your budget into an unlimited number of levels.

Create master-detail budgets.


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Completing the Budget Accounting Cycle

Step 1: Define budgets and budget organizations.

Step 2: Enter budget amounts.

Step 3: Review and correct budgets.

Step 4: Freeze budgets.

Step 5: Reports on budgets.

Defining Budgets and Budget Organizations

Define up to 60 budget periods in your budget.

Define budget organizations at any level: cost center, division, and so on. Assign passwordsto budgets and create new organizations by copying existing budget organizations.

Entering Budgets

Enter budget data using standard, formula-based, and automatic allocations.

Enter amounts using annual spread, fixed amounts, and calculated methods using anindividual account layout or a worksheet-type screen layout.

Transfer budget amounts from one account to another.


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Completing the Budget Accounting Cycle

Reviewing, Correcting, and Freezing Budgets

Review budget amounts and variances by period and account combination. Perform online

review and compare summary balances of master-detail budgets.

Freeze budgets to prevent further update to completed budgets.

Reporting on Budgets

Run standard or customized budget reports.


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Copyright 2000 University of Virginia and Oracle Corporation. All rights reserved.

GL Budgeting - Planning ConsiderationsChapter 0 - Page 1

GL Budgeting - PlanningConsiderations


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GL Budgeting - Planning Considerations

Section Objectives

At the end of this section, you should be able to discuss setup considerations for General Ledger

budgeting.


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GL Budgeting - Planning Considerations

Planning Your Budget Requirements

In order to successfully implement General Ledger Budgeting, you should analyze your

organization's definition and use of budgets, budget organizations, and budgeting methods.Required decisions include:

Whether or not you need the audit trail that budget journals provide.

Note: UVA has decided that an audit trail is necessary; therefore, budget journals are

required.

Whether you require a balance sheet budget

Whether you will budget in a centralized or a distributed mode

Note: UVA budget will be developed in the field but loaded into the application by the

central office.

Whether you will need additional budgets for re-forecasting or what-if scenarios

Whether you will budget directly into General Ledger or use spreadsheets withApplications Desktop Integrator (ADI)

Note: Because UVA required budget journals, the Budget Wizard cannot be used.

Journals can be entered directly in the application or uploaded through ADI, by

selecting a balance type of Budget.


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Budgeting Tips and Techniques

When planning your budgeting process, consider the following:

To allow more flexibility when defining budgets, do not select 'Require Budget

Journals' in the Define Budget window. This will allow you to make that decision on acase-by-case basis.

You may assign passwords to each budget organization in order to control the enteringof data.

You can automatically run the Maintain Budget Organization program so that disabledcode combinations are deleted and new code combinations are added periodically.

Chapter 2


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Copyright 2000 University of Virginia and Oracle Corporation. All rights reserved

Reviewing and Updating BudgetsChapter 3 - Page 1

Reviewing and UpdatingBudgets

Chapter 3


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Reviewing and Updating Budgets

Section Objectives

At the end of this section, you should be able to:

Perform online inquiries on budgets

Drill down to the detail balances from summary balances

Use standard reports to review budgets.

Update budgets

Freeze and unfreeze budgets


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Overview

Use a three-step process to ensure the accuracy ofyour budgets.

Step 1:Review budget

information.

Step 1:Review budget

information.

Step 3:

Freeze budgets.

Step 3:

Freeze budgets.

Step 2:

Correct budgetinformation.

Step 2:

Correct budgetinformation.

Reviewing Budgets

After entering or importing budget information, run reports or perform online inquiries to ensure theaccuracy of your budgets. General Ledger provides a variety of methods for this analysis.

Updating Budgets

Prior to finalizing your budget, review your budget data and make revisions, if necessary.

Freezing Budgets

You can freeze a budget, budget organization, budget formula batch, or range of budgetaccount combinations to prevent accidental or unauthorized changes.

You can also unfreeze any budget or budget element that is currently frozen.


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Inquiry - Using Account Inquiry

General Ledger

N Inquiry Account

Account Inquiry

Account Inquiry

1. Open the Account Inquiry window and enter the range of Accounting Periods to include in your

inquiry.

2. Specify the currency.

3. Select Budget for your Primary Balance Type; if desired, select Actual for your SecondaryBalance Type. By selecting a secondary balance type, you will be able to compare budgets to

actuals.

4. Select a precision factor.

5. Select a display method for your inquiry.


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Select Show Balances to review balances for the current account.

Select Show Journal Details to see the journal entry activity for the current account.

Click 'Show Variance' to see a variance calculation between your primary balance andsecondary balance types.

Caution: You cannot include variances in your Account Inquiry if you choose to inquire on allcurrencies.


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GL Budget - Reviewing Budget Inquiry

General Ledger

N Inquiry Budget

Budget Inquiry

Budget Inquiry

NOTE: This inquiry screen can only be used when a master budget and summary accounts have

been setup.

1. Enter your budget inquiry criteria, specifying a master budget.

2. Select an Inquiry Type.

To review Master Budgets, select Drilldown this Budget for the Inquiry Type. To review Detail Budgets, select Query Detail Budgets and query a Summary

Account.

To limit your inquiry and review only balances where the detail budgets exceed themaster budget, select Query Budget Violations Only.

3. Query a Summary Account.


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4. Select Show Balances from the Budget Inquiry window to open the Budget Balances window.


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GL Budget - Using Budget Inquiry

General Ledger

N Inquiry Budget

B Show Balances

B Detail Accounts

Budget Balances

Budget Balances

How to Review Master and Detail Budget Balances

1. If you chose Drilldown this Budget, select Detail Accounts to review the balances for the detail

account combinations that roll up into the summary account. Then select Budget Journals to seethe journal entries for the selected detail account.

2. If you chose to Query Detail Budgets, select Show Budgets to review the detail budgets that rollup into the master budget for the summary account for a selected period.


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Budget Reports

Review your budgets by using standard reports and listings.

Report Description

Budget Trial

Balance

Displays account budget balances and activity for a

specific currency

Master-Detail

Budget

Compares budget amounts between master and detail

budgets and highlights violations (when detail budgets

exceed their master budget or master budgets exceed their

detail budgets)

Summary-DetailBudget

Lists the detail accounts that roll up into a summaryaccount for a particular budget and currency

Unbudgeted

Master- Detail

Accounts

Lists transactions in the detail budget for which there are

no cor- esponding budgeted amounts in the master budget

Budget Hierarchy

Listing

Lists master-detail budget relationships

Budget

Organization Range

Listing

Lists details (including budgetary control options) of

budget organizations by account range

Budget Journal Entries

MassBudget Journals

Transfer Budget Amounts

Budget Balance Consolidation

If posted, use the Enter Budget Journals window.

If unposted, use the Enter Journals window. Open the budget journal and make appropriate changes.


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GL Budget - Budgets: Freezing

General Ledger

N Budgets Freeze

Freeze Budget

How to Freeze or Unfreeze a Budget

1. Open the Freeze Budgets window and query the desired budget, budget organization, accountrange, or budget formula batch.


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2. Select either Organizations or Batches from the list of values.

3. Select Frozen for the item you want to freeze or clear frozen items you want to unfreeze.

4. Save your work.

Hint: To freeze or unfreeze an entire budget, change the budget status in the Define Budget window.

Note: When you freeze budget organizations, you cannot budget to the account combinations

belonging to that budget organization. When you freeze formulas or ranges of account combinations,you cannot use those formulas or budget to those account combinations for the budget specified.


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C i ht 2000 U i it f Vi i i d O l C ti All i ht d

Summary

This lesson covered the following topics:

Performing online inquiries about your budgets by using the Budget Inquiry window

Drilling down to the detail balances from summary balances

Using standard reports to review budgets

Updating budgets by using the original creation method or the Enter Budget Journals, EnterJournals, or Enter Budget Amounts window

Freezing and unfreezing budgets by using the Freeze Budget window

GL Budgeting Student Guide

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