EDU342FY

Financial Budgeting
R12 General Ledger Management Fundamentals
Copyright 2007, Oracle. All rights reserved.

Objectives
After completing this lesson you should be able to do

the following:
Explain the anatomy of a budget
Complete the budget accounting cycle
List the available budget methods
Define a budget and budget organization
Discuss budget entry methods
Apply budget rules
Upload budget amounts
Understand transferring budget amounts
Freeze and unfreeze budgets

Objectives
After completing this lesson you should be able to do

the following:
Review and correct budgets
Translate budget balances
Perform budget inquiry
Review balances in Master/Detail budgets
Create a budget worksheet in Budget Wizard
Upload budgets from Budget Wizard and
external sources
Discuss budget reporting methods
List standard budget reports
Plan budget implementation requirements

What Is a Budget?
December 1998
Cost Center 100
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

What Is an Oracle Budget?
An Oracle Budget can be:

Set up to calculate in the same way that actuals are
calculated.
Translated to create comparisons between budget
versus actual reports in reporting currencies.

Available Budget Methods
Oracle
General
Ledger
Budget Wizard
Oracle Enterprise Non Oracle

Planning and Budgeting Systems

Anatomy of a BudgetOverview
A budget consists of periods, accounts, and

amounts.
Name: FY96PLAN
Jan-1994 to Dec-1994 Periods
Accounts
CC100 .. $3000 Amounts
CC200 .. $1500

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: Report on budgets.

Creating a Budget
Amounts are entered

into a combination of:
Budget -> Periods
01 200 5800
01 200 6300
Organization
-> Accounts 01 200 7340

Budget Definition Steps
Step 1: Plan budget structure.
Step 2: Create budgets and hierarchies.
Step 3: Set up budget organizations.

Budget Hierarchies
You can use the following methods to structure

budgets:
Top-down budgeting
Bottom-up budgeting
Middle-out budgeting

Define a Budget
Open
Year 2002 Current

Budget
Enter Name Frozen

and
Description Enter Status
Up to 60
Periods
Create JEs?

Open Budget Year
Select the Open Next Year button in the Define Budget

window to open one year at a time.
OPEN NEXT YEAR

Master-Detail Budgets
Use master-detail budgets to implement budget

hierarchies
Corporate Budget
Master: None
Sales Budget Marketing Budget

Master: Corporate Master: Corporate
Public Relations Trade Shows

Western Budget Eastern Budget
Budget Budget
Master: Sales Master: Sales
Master: Marketing Master: Marketing

Budgets Using FSG Reports
You can also set up Financial Statement Generator

(FSG) reports with hierarchical reporting instead of
using summary accounts.
Row
Column
Report

Multiple Versions of a Budget
Copy existing budgets to create multiple

versions of a budget for what if analysis
Slow Growth
Moderate Growth Division 1
Aggressive Growth Division 1
Division 1

Define Budget Organizations
Maintenance
CC #100
Administration
CC #200
Engineering
CC #300

Features of Budget Organizations
Freeze
Inquire and Report
All
Account
Ranges
Password Security

Budget Organization Window
AutoCopy Ranges Assignments
Assign account Review or delete

Copy accounts
ranges accounts
Review, delete, Range Assign budgetary

Or add accounts assignments control options

AutoCopy Budget Organizations
Copy accounts from an existing budget

organization to a new budget organization.
Specify an override for at least one Accounting
Flexfield segment.
Source budget
organization
New budget
Maintenance organization
CC #100
Segment override Administration
Balancing Segment ___ CC #200
Cost Center 200
Account ___

Assign Account Ranges
Budget Amounts
Budget Journals
Upload Budget Amounts
Transfer Budget Amounts
Entered In any currency
Budget Formulas
MassBudget Journals
In Functional or STAT
Calculated

Add/Change Account Ranges
01 200 5000
Specific accounts must be within the designated

account range.
Existing combinations within the range will be
automatically added to an organization.
New combinations must be added in the Range
Assignments window.
01 200 5999

Removing Account Ranges
01 200 5800
X
Temporarily, delete the row assignment.
Permanently, delete the range assignment.
01 200 5000
X 01 200 5999

Delete a Budget Organization
Select the Delete

DELETE Button
Answer Yes in the
Decision Box
Decision
? Are you sure you want to delete

this budget organization?
No Yes

Budget Entry Methods
Oracle General Ledger provides many methods to

enter budget data:
Enter budget amounts
Enter budget journals
Use the Desktop Integrator Budget Wizard
Upload budgets
Create budget formulas
Create MassBudget journals
Transfer budget amounts

Journals Created?
Budget Entry Journal Entry

Method Created?
Budget Amounts No
Budget Journals
Budget Formulas No
MassBudget Journals
Transferred Budget
Amounts
Budget Wizard No
Journal Wizard
Upload Budgets No

Budget Entry Modes
Entry Mode Types of Amounts to Enter
Journal Mode Enter incremental amounts

Worksheet Mode Enter ending amounts
Single Row Mode Enter ending amounts

Entering Budget Amounts
Budget rules are predefined methods for calculating

and distributing amounts to all periods.
Annual advertising budget 1,200,000
Budget rule: Divide evenly
Jan Feb Mar Apr May Jun

100,000 100,000 100,000 100,000 100,000 100,000
Jul Aug Sep Oct Nov Dec
100,000 100,000 100,000 100,000 100,000 100,000

Budget Rules
50 50
50 50 Repeat per Period
Divide Evenly
01 200 5999 X
An Existing Account
Balance Number

Budget Rules and Your Calendar
Budget Rules:
Use the Divide Evenly, 4/4/5, 4/5/4, or 5/4/4 for
spreading amounts throughout each quarter,
only if the calendar has 12 or 13 periods per year.
Divide the base amount among budgeting
periods.
Round the distribution amounts to the minimum
accountable unit of the budget currency.
Budget Rules

Budget Journals Process
Step 1: Enter
budget journals.
Step 2: Run
journal import.
Step 3: Post
budget journals.

Entering Budget Journals
When entering budget journals, remember:

Use budget journals to maintain an audit trail
for your budget balances.
Oracle General Ledger does create journal
entries when you enter budget journals.
Assign the Entered budget entry type to the
accounts.
Enter budget journals for a budget that is not
frozen.

Budget Journal Features
50 50
50 50
Use Budget Assign STAT Currency

Rules
Change
before
Posting to
Update
Balances

Calculating and Translating Budget Amounts
Calculate Budgets
as Actuals are
calculated
Translate into
Reporting
Currencies

Budget Translation Overview
Open
Translate Balances Period
Window
Pounds Yen
Exchange Rate

Transfer Budget Overview
Transfer budget amounts between accounts:

In different budget organizations
Within the same budget organization
200 400
200 200
Transfer by:
Budget Amounts or Percentages $
Using Budgetary Control (optional) %
Transfer Budget Process
01 200 5800 $
% 01 400 5800
Journal Import Post Journal

Transfer Budget Amounts Example
01 200 5800
$500 01 400 5800
Before: 01.200.5800 $1500

01.400.5800 $700
After: 01.200.5800 $1000

01.400.5800 $1200

Transfer Budget Percentage Example
01 200 5800
10 % 01 400 5800
Before: 01.200.5800 $1500

01.400.5800 $700
After: 01.200.5800 $1350

01.400.5800 $850

Transfer with Budgetary Control
Check Reserve
Funds Select Funds
Review
Fund
Status
Additional Steps Required

Finalize Budgets
Step 1:
Review budget
information.
Step 2:
Correct budget
information.
Step 3:
Freeze budgets.

Correcting Budgets
Make manual updates to your budget by using the

appropriate adjustment window.
Budget journal entries?

Use either the Enter Budget
Journals or the
Enter Journals window.
No budget journal entry?

Use the Enter Budget
Amounts window or the
Budget Wizard.

Budget Journal Entries?
Use the Enter Budget Journals window or the Enter

Journals window to update these budget entry types:
Mass Budget Journals
Transferred Budget Amounts
Budget Balance Consolidation
Journal Wizard
Use this window to make

If the budget journals are... updates...
Posted Enter Budget Journals
Unposted Enter Journals

No Budget Journal Entries?
Use the Enter Budget Amounts window or the Budget

Wizard to update these budget entry types:
Budget Formulas
Budget Amounts
Budget Wizard
Upload Budgets

Freeze Budgets
Budget Formula Batch
Budget
Organization Budget
Range of Budget Accounts
01 200 5800
01 400 5800

Budget Inquiry Overview
Account Inquiry Budget Inquiry
Specific Account Master and Detail

Balances Budgets

Performing Account Inquiry
Account
Inquiry
(B) Show (B) Show (B) Show

Balances Journal Details Variance
Detail Journal Variance

Balances Details
1st 2nd
Show Full Bal
Journal Bal
Summary Type Type
Balances

Reviewing Variances Between Account Balance
Types
Calculate the variance between a primary balance

type and a secondary balance type using the
formula below.
Example: Enter an Actual primary balance type
and a Budget secondary balance type to compare
Budget to Actual.
Variance = Primary Balance Type - Secondary Balance Type
500 = 1500 - 1000

Budget Inquiry Window
Use the Budget Inquiry window to:

Review master and detail budgets
Compare summary balances between master and
detail budgets
Check for budget variances and violations
When you perform an inquiry on a master budget, you
can choose any of these Inquiry Types:
Drilldown this Budget
Query Detail Budgets
Query Budget Violations Only

Drilldown This Budget
Budget
Inquiry
Drilldown
This Budget
Show Balances Budget

Journals
Detail
Accounts

Query Detail Budgets and Violations Only
Budget
Inquiry
Query Detail
Budgets
Show Balances Detail

Accounts
Detail Budget
Budgets Journals

Two Wizards - Overview
Budget Wizard or
Journal Wizard
A/C Debit Credit
01.100.1120.000.000.000 $100
01.100.4160.000.000.000 $75 Oracle
01.100.4199.000.000.000 $25 General Ledger
GL_BUDGET_INTERFACE
Table

Budget Wizard: Overview
Budgets
A/C Debit Credit
01.100.1120.000.000.000 $100
01.100.4160.000.000.000 $75
01.100.4199.000.000.000 $25
Excel Spreadsheet Budget

Organizations

Budget Wizard Key Benefits
Budget vs. Actual

Comparisons
Eliminate
Double
Maintenance
Budget
Calculate Using Formulas Notes

Summary
In this course, you should have learned how to:

Explain the anatomy of a budget
Complete the budget accounting cycle
List the available budget methods
Define a budget and budget organization
Discuss budget entry methods
Apply budget rules
Upload budget amounts
Understand transferring budget amounts
Freeze and unfreeze budgets

Summary
In this course, you should have learned how to:

Review and correct budgets
Translate budget balances
Perform budget inquiry
Review balances in Master/Detail budgets
Create a budget worksheet in Budget Wizard
Upload budgets from Budget Wizard and external
sources
Discuss budget reporting methods
List standard budget reports
Plan budget implementation requirements

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Financial Budgeting

R12 General Ledger Management Fundamentals

Copyright 2007, Oracle. All rights reserved.

After completing this lesson you should be able to do

Copyright 2007, Oracle. All rights reserved.

After completing this lesson you should be able to do

Copyright 2007, Oracle. All rights reserved.

Travel 1,500 1,700 200

TOTAL 19,500 20,200 700

Copyright 2007, Oracle. All rights reserved.

An Oracle Budget can be:

Copyright 2007, Oracle. All rights reserved.

Oracle Enterprise Non Oracle

Copyright 2007, Oracle. All rights reserved.

A budget consists of periods, accounts, and

Copyright 2007, Oracle. All rights reserved.

Step 1: Define budgets and budget organizations.

Step 2: Enter budget amounts.

Step 3: Review and correct budgets.

Step 4: Freeze budgets.

Step 5: Report on budgets.

Copyright 2007, Oracle. All rights reserved.

Amounts are entered

Budget -> Periods

Copyright 2007, Oracle. All rights reserved.

Step 1: Plan budget structure.

Step 2: Create budgets and hierarchies.

Step 3: Set up budget organizations.

Copyright 2007, Oracle. All rights reserved.

You can use the following methods to structure

Copyright 2007, Oracle. All rights reserved.

Year 2002 Current

Enter Name Frozen

Copyright 2007, Oracle. All rights reserved.

Select the Open Next Year button in the Define Budget

OPEN NEXT YEAR

Copyright 2007, Oracle. All rights reserved.

Use master-detail budgets to implement budget

Sales Budget Marketing Budget

Public Relations Trade Shows

Copyright 2007, Oracle. All rights reserved.

You can also set up Financial Statement Generator

Copyright 2007, Oracle. All rights reserved.

Copy existing budgets to create multiple

Copyright 2007, Oracle. All rights reserved.

Copyright 2007, Oracle. All rights reserved.

Inquire and Report

Copyright 2007, Oracle. All rights reserved.

AutoCopy Ranges Assignments

Assign account Review or delete

Review, delete, Range Assign budgetary

Copyright 2007, Oracle. All rights reserved.

Copy accounts from an existing budget

Copyright 2007, Oracle. All rights reserved.

Copyright 2007, Oracle. All rights reserved.

Specific accounts must be within the designated

Copyright 2007, Oracle. All rights reserved.

Permanently, delete the range assignment.

Copyright 2007, Oracle. All rights reserved.

Select the Delete

? Are you sure you want to delete

Copyright 2007, Oracle. All rights reserved.

Oracle General Ledger provides many methods to

Copyright 2007, Oracle. All rights reserved.