Setting Up Planning Target Rules

This chapter provides an overview of using planning targets for bottom-up scenarios and discusses how to define planning target defaults.

Understanding Planning Targets for Bottom-Up Scenarios

This section provides an overview of planning target defaults, associating planning target rules in the planning model with a bottom–up budget, and lists prerequisites.

Understanding Planning Target Defaults

This section provides an overview of planning target defaults, associating planning target rules in the planning model with a bottom–up budget, and lists prerequisites.

When a scenario group used by the planning model contains a top-down scenario type, it can be used to do one of the following:

Set targets or spending limits for bottom-up budgets, such as limits placed on expenses by an operating unit or department.
Create budget base for a proposed bottom-up budget.

The budget base serves as a starting point for the proposed bottom-up budget or plan (non-history scenario type). In this case, dimension levels of the bottom-up budget must be equal to or at a higher level in the tree than the top-down plan.

Associating Planning Target Rules in the Planning Model With a Bottom–Up Budget

To use the planning target rules in the planning model with a bottom-up budgets, perform the following steps:

Open the planning model in the Planning Model component and verify the scenario group tied to the model contains scenario types for both a top-down plan and bottom-up budget.
For a line item activity and bottom-up scenario in the planning model, link the planning target control definition and top-down target scenario. This is done by accessing the Data Source page for the bottom-up activity/scenario.
In order to view the targets and use them with the bottom-up budget, the top-down scenario must first be exported back to the budget ledger.
Select the View Targets link to define and review the dimensions used as targets to include in validation, view target details, and allow any target overrides by planning center during budget submission.

Note. A formal business process should be placed around the use and order top-down plans and bottom-up budgets are prepared. For example, target data must be available to the bottom-up plan, but if this top-down target data changes during the preparation of the bottom-up plan, the target data can be refreshed by rerunning the export process. But if using active control around budget submissions, keep in mind budgets may already be in differing states of approval and submission.

See Defining the Planning Model.

Prerequisites

Complete these prerequisites before setting up planning targets:

Set up the scenario group to include the planning target rules by defining a unique top-down scenario and by linking it to the bottom-up scenario.
Use Allocation Manager in PeopleSoft Enterprise Warehouse to allocate to the appropriate level in order to use the data as the budget base when top-down plans exists at a higher level on the dimension tree than bottom-up budgets. Allocate this data to parameters (such as fiscal year, ledger, and GL scenario) recognized by a scenario within the scenario group that can be selected and used as the data source or seed for a bottom-up budget.

Note. Top-down scenario types or plans cannot use planning targets; only bottom-up scenario type budgets can reference planning targets by indicating which top-down plan is its target.

Note. You cannot use planning targets with planning models defined as control budget types.

See Using Data from PeopleSoft Project Costing.

Defining Planning Target Defaults

To set up your planning target defaults, use the following components:

Planning Target Tolerance (BP_TGT_TOLNCE).
Planning Target Control (BP_TCT_CONTROL).

This section discusses how to:

Validate and verify planning target details.
Define planning target tolerance rules.
Assign planning target controls.

Pages Used to Define Planning Target Defaults

Page Name	Object Name	Navigation	Usage
Planning Target Inquiry	BP_TGT_STD_INQ	Planning and Budgeting, Planning and Budgeting Setup, Planning Target Defaults, Planning Target Validation, Planning Target Inquiry	Inquire and validate planning target data to be used in the planning model.
Planning Target Tolerance	BP_TGT_TOLNCE	Planning and Budgeting, Planning and Budgeting Setup, Planning Target Defaults, Planning Target Tolerance, Planning Target Tolerance	Define planning target tolerance rules.
Planning Target Control	BP_TGT_CONTROL	Planning and Budgeting, Planning and Budgeting Setup, Planning Target Defaults, Planning Target Control, Planning Target Control	Define planning target control and assign tolerance rules.

Validating and Verifying Planning Target Details

Access the Planning Target Inquiry page.

The system displays only the details from the activity scenario specified as a top-down scenario to be used as planning targets to a bottom-up budget. The planning target details are associated with the planning model ID, activity, and scenario that you select.

From Value and To Value

Enter the dimension value range of the planning target detail rows that you want to appear.

If you leave the fields blank, the system displays all valid rows.

View Target Details

Click to display valid rows in the Inquiry Details grid.

The system validates that the target planning centers exist on the same tree level and displays the valid rows. If the planning center does not exist on the same tree level, then no rows appear. Additionally, no rows appear if the budget coordinator has not yet exported the top-down scenario data back to the budget ledger table in the Enterprise Warehouse.

Note. Planning targets created by using Allocation Manager should be stored in the budgeting ledger using the ledger's natural signage (that is positive [+] or negative [-]) for its account type. When you view the target data in Planning and Budgeting, the system manages the signage according to the account type option settings.

Defining Planning Target Tolerance Rules

Access the Planning Target Tolerance page.

Currency Code	Enter a currency code that is the base currency identified for the business unit.
From Account and To Account	Enter the account range, which must include the value or roll-up value associated with the planning center target amounts. The system does not permit overlapping account ranges.
Tolerance Type	Select whether the planning target is allowed to be Above Target or Below Target.
Percentage and Amount	Enter the percentage, the amount, or both that the tolerance type is allowed to be above or below the planning target.
And/Or	Select whether the percent or amount variances must pass one (Or) or both (And) the percentage and amount values that you specify. If you do not enter a value in either the Percentage or Amount fields, the system uses only one value to validate the planning target tolerance. If you are specifying either the percentage or the amount, do not select a value from the And/Or drop-down list box.

Assigning Planning Target Controls

Access the Planning Target Control page.

Currency Code

Enter the currency code that is the base currency identified for the business unit.

Role Name

Select the role to which you are assigning the planning target control.

Target Control

Select the target control. Values are:

Active Control: Requires that you validate the budget against the planning targets before submitting it. If the budget totals are not within the tolerance levels, the system indicates that the status is invalid and you cannot submit the budget until you modify the budget and the amount is within the tolerance range of the planning target.

No Control: The system tracks the budget against the defined planning targets but does not generate any warnings or validations. You can still compare their planning targets against the budget amounts using the Planning Targets page in line-item budgeting.

None (or if field is left blank): The system does not track or validate planning targets against the budget. The system does not display the Planning Targets page link in line-item budgeting. Also, the role is unable to run a Planning Target Analysis report.

Passive Control: Enables you to submit a budget even if the budget is not within the planning target and its tolerance rules. If you selected to use an email template for the Planning Target event on the Assign Email Templates page, the system sends an email to the user of the next planning center level indicating that the budget exceeded tolerance levels.

Tolerance ID

Select the desired tolerance ID for role names with active or passive target control.

You define tolerance IDs using the Planning Target Tolerance page. The tolerance ID must use the same currency code as the defined target control. You cannot assign a tolerance ID to user roles with Target Control set to No Control, None, or if the control setting is blank.

Note. Regardless of the target control defined to each of the role names, planning target validation and control for the budget will only occur or start at the level in which preparation began in the top-down scenario.

Currency Code	Enter the currency code that is the base currency identified for the business unit.
Role Name	Select the role to which you are assigning the planning target control.
Target Control	Select the target control. Values are: Active Control: Requires that you validate the budget against the planning targets before submitting it. If the budget totals are not within the tolerance levels, the system indicates that the status is invalid and you cannot submit the budget until you modify the budget and the amount is within the tolerance range of the planning target. No Control: The system tracks the budget against the defined planning targets but does not generate any warnings or validations. You can still compare their planning targets against the budget amounts using the Planning Targets page in line-item budgeting. None (or if field is left blank): The system does not track or validate planning targets against the budget. The system does not display the Planning Targets page link in line-item budgeting. Also, the role is unable to run a Planning Target Analysis report. Passive Control: Enables you to submit a budget even if the budget is not within the planning target and its tolerance rules. If you selected to use an email template for the Planning Target event on the Assign Email Templates page, the system sends an email to the user of the next planning center level indicating that the budget exceeded tolerance levels.
Tolerance ID	Select the desired tolerance ID for role names with active or passive target control. You define tolerance IDs using the Planning Target Tolerance page. The tolerance ID must use the same currency code as the defined target control. You cannot assign a tolerance ID to user roles with Target Control set to No Control, None, or if the control setting is blank.