Budgeting Project Costs and Revenue

This chapter provides an overview of project cost and revenue budgets and discusses how to:

• Set up budgets in Project Costing.

• Create and define budget plans.

• Maintain budget plan versions.

• Process budget rows from Microsoft Project.

• Integrate budget data with Planning and Budgeting.

• Analyze budgets.

See Also

Integrating with Commitment Control

Understanding Project Cost and Revenue Budgets

This section discusses:

• Terminology that is relevant to project budgeting.

• Project budgeting setup steps.

• Process flow.

• Top-down budget distribution.

• Bottom-up project budgeting.

• Project charging levels.

• System-defined budget parameters.

• Budget items.

• Budget alerts.

• Finalizing budgets.

• Budget plan versions.

Terminology

This table describes terms that are relevant to project budgeting:

Project Budgeting Setup Steps

This table lists the high level steps to enable and set up project budgeting and provides a link to the PeopleBook documentation that discusses the step:

Process Flow

Project Costing supports top-down project budgeting, bottom-up project budgeting, and the ability to adjust existing project budgets. This diagram shows the bottom-up and top-down project budgeting process flow in Project Costing:

Top-down and bottom-up and budgeting processes

You can simplify the process of creating budgets by using project templates. For example, you can create a project template that contains the detailed work breakdown structure, budget plan, and budget items that are associated with the project activities. Use the template to populate new projects with the preset budget information. You can modify the project template, or create multiple templates to meet your business needs.

Top-down Budget Distribution

The main steps to create budgets from the top down are:

1. Enter a high-level estimate for the project on the Budget Plan page.

   Use this page to enter budget scenarios for the project. Budget plans provides a high level definition of the total budget for each project budget under consideration.

2. (Optional) Distribute the estimate down to summary activities on the Budget Detail page.

3. Distribute the estimate down the WBS to costing activities on the Budget Detail page.

   Use this page to define a specified project budget at a greater level of detail by using budget items.

4. Adjust budget amounts for budget items on the Project Budget Items - Adjust Budget Items page.

   Use this page to spread the budget amounts to budget items on costing activities.

5. Distribute the estimate across periods on the Project Budget Periods - Adjust Budget Periods page.

   Return to this page to distribute the budget item budget adjustment across budget periods.

6. Choose one cost and one revenue budget plan and finalize the plans.

   Finalizing a budget plan sends the budget data to the Project Transaction Interface staging table (INTFC_PROJ_RES) and initiates a process to determine if the budget transactions go directly to the Project Transaction table (PROJ_RESOURCE). If Commitment Control is active for Project Costing and the GL business unit and ledger group combination, the rows must first go through Commitment Control.

   You can finalize only active plans.

You distribute project-level cost estimates across the WBS for detail activities, budget items, and time periods by using one of the distribution options listed in this table:

You can enter negative percentages and amounts for activities, budget items, and periods.

Bottom-up Project Budgeting

After you create a detailed WBS and budget plan in Project Costing, you can create budget details by estimating amounts by period for budget items and rolling up the amounts to the activity and project levels.

For example, you can enter revised period budget amounts at the budget item level, which roll up to the activity level. If the sum of the revised budget item amounts is different than the previous activity budget amount, you can override the previous activity budget amount. The sum of the revised activity budget amounts rolls up automatically to the project level.

Calculate Budget Amount Based on Employee, Job Code, or Project Role

You have the option to calculate period budget amounts by selecting a rate by employee, job code, or project role. You can enter a quantity, unit of measure, and rate calculation basis for a period, and the system calculates the period budget amounts that roll up to the budget item, activity, and project level.

The Calculate Amount From Quantity feature performs in a similar manner as a worksheet. For example, assume that you want to calculate the budget amount for 100 hours of labor by using predefined rates. First you want to view the calculations based on employee, job code, and project role rates, after which you will determine which rate to use. These are the typical steps to accomplish this scenario:

1. On the Project Budget Items - Adjust Budget Items page, add the labor budget item to the project activity.

2. On the Project Budget Periods - Adjust Budget Periods page:

   1. Select the Adjust by Amount spread option.

   2. Enter a quantity of 100 and unit of measure of work hours for a budget period.

   3. Click the Calculate Amount button to access the Calculate Amount From Quantity page.

3. To view the calculation by employee rate:

   1. Select a rate calculation basis of Employee ID on the Calculate Amount From Quantity page.

   2. Select a specific employee ID from the list of available employees.

   3. Click OK to return to the Project Budget Periods - Adjust Budget Periods page and view the calculated budget amount.

4. To view the calculations by job code or project role rates:

   1. Click the Calculate Amount button again to return to the Calculate Amount From Quantity page.

   2. Select the rate calculation basis, select the detail row, and click OK to return to the Project Budget Periods - Adjust Budget Periods page.

      The system clears the previous calculated amount and displays the new results. Repeat this process as many times as needed for each period row.

5. When you reach the desired the budget adjustments, click Distribute Budget to update the distributed budget and target budget amounts.

Distribute Costs to Budgets Process in Program Management

If you use Program Management, you can generate a bottom-up project cost and revenue budget from the amounts defined on the Resources by Activity page. You can click the Get Plan button on the Budget Plan page to trigger the Distribute Costs to Budgets Application Engine process (PGM_SPREAD). This process creates budget detail rows based on activity resource amounts. If the budget plan has a cost budget type, the cost amounts from the Resources by Activity page are used for the detail budget rows. If the budget plan has a revenue budget type, the bill amounts from the Resources by Activity page are used for the detail budget rows.

See Understanding Cost and Revenue Budget Generation.

Project Charging Levels

If you use Program Management, you can take advantage of a flexible project activity model that supports both a detail WBS for planning, and a cost breakdown structure for accounting. You can use different levels of the WBS for project management and accounting by defining the WBS level at which you want to track project budgets and costs. You can specify a project charging level of WBS level 1, level 2, or level 3, and the system restricts charges to summary and detail activities that are in the specified level. You can also specify a project charging level of all detail activities, in which case you can capture costs on detail activities, but not on summary activities—regardless of an activity's WBS level.

If you use Project Costing without Program Management, the project charging level is all detail activities.

See Understanding Project Charging Levels.

Budget Items

Budget items are one of the building blocks of a project budget. Initially, the system uses budget items to establish default ChartField values for budget rows. Later, budget items provide a way of identifying and grouping transactions that the system uses to identify a project activity's budget costs or revenue for a given period.

Project budgeting uses the fields defined on the budget item to match with actual amounts in project transactions. Only those transactions that match the defined ChartField values are counted as actuals for a given budget item.

Budget Alerts

You can establish cost budget alerts that warn the project manager of potential cost overruns at the project or activity level. The system compares budget amounts with values on the Summary Budget Data table (PC_BUD_SUMMARY), which stores summarized actual costs.

Although budget alerts are not processed at the business unit level, you establish cost budget alerts for the business unit that appear as default values for all project budgets belonging to that business unit. Cost budget alerts that you establish at the project level can be used as default values for project activities. You can override default settings at the project and activity levels.

Budget alerts appear on the Budgets vs. Actuals interactive report.

Finalizing Budgets

You can define multiple cost budget plans and revenue budget plans for a project, and designate one cost budget plan and one revenue budget plan as active. After you distribute all summary budget amounts to costing activities, budget items, and periods, you can finalize the active plans.

Finalizing a budget plan sends the budget data to the Project Transaction Interface table and initiates the PC_WRAPPER Application Engine program which calls the Load Third-Party Transactions Application Engine process (PC_INTFEDIT). The Load Third-Party Transactions process triggers the Project Costing to Commitment Control Application Engine process (PC_TO_KK), which determines if the budget transactions must go through Commitment Control before they are posted to the Project Transaction table.

If Commitment Control is not required, the process sends the rows directly to the Project Transaction table. You can modify rows on the finalized budget plan and refinalize the plan, which updates the budget amounts on the Project Transaction table. You can also inactivate the previous finalized plan, and activate and finalize a different plan, which replaces the previous budget transactions with new finalized budget transactions on the Project Transaction table.

If Commitment Control is required, the Project Costing to Commitment Control process sends budget rows and cost transactions that require budget-checking to Commitment Control. With Commitment Control you cannot finalize another plan of the same budget type (cost or revenue) and analysis type. You can, however, add new rows on the Budget Detail page and refinalize the budget plan.

Finalizing a budget plan also triggers the Refresh Budget Summary Application Engine process (PC_BUD_SUM) to summarize budget data in the Summary Budget Data table.

After you finalize a budget you can run a Project Budget Review report (PCY1050.RPT) to perform budget versus cost analysis, or use the Budget vs. Actual interactive report to compare budgeted amounts with actual costs.

See Project Costing to Commitment Control Process.

Budget Plan Versions

You can retain a historical version of the budget plan transaction rows each time that you finalize a budget. Historical budget plan versions are stored in the Project Transaction table along with the current, finalized budget rows. Each historical budget version is uniquely distinguished by analysis type, and can be used for analysis and reporting. You can control budget plan versions by business unit.

By using budget row versioning, the first time that you finalize a project’s budget plan, the system creates a copy of the plan and assigns a unique analysis type to budget rows in the plan copy. The new analysis type distinguishes these rows as historical budget plan version sequence one. The original analysis type remains unchanged on the current, finalized budget rows.

If you modify and refinalize the existing budget plan, or activate and finalize a different plan for the project, the system again creates a copy of the new plan and assigns a unique analysis type to budget rows in the plan copy. The new analysis type distinguishes these rows as historical budget plan version sequence two.

You configure the budget version analysis types, and the sequence in which they are used, by business unit. PeopleSoft delivers the following sequence of analysis types and analysis groups that you can use to distinguish historical cost and revenue budget versions:

You define these sequences at the business unit level, and use them at the project level. Each project independently uses the analysis type sequence for budget plan versions. The last analysis type used in the sequence is stored in the Project Header table (PS_PROJECT).

For example, assume that you finalize a new cost budget plan using the analysis type BUD. The system:

• Saves the budget detail rows with analysis type BUD in the Project Transaction table.

• Creates a copy of the finalized budget detail rows and updates the analysis type to CV1 (Historical Cost Budget Version 1).

• Stores the copy of the budget detail rows with analysis type CV1 in the Project Transaction table.

Next, assume that you refinalize the cost budget plan for the project. The system:

• Deletes the previously finalized budget detail rows with analysis type BUD from the Project Transaction table.

• Saves the new refinalized budget detail rows with analysis type BUD in the Project Transaction table.

• Creates a new copy of the refinalized budget detail rows and updates the analysis type to CV2 (Historical Cost Budget Version 2).

• Stores the copy of the budget detail rows with analysis type CV2 in the Project Transaction table.

The system does not retain a historical budget version in the Project Transaction table if:

• The project is commitment-controlled.

• The Enable Budget Row Versioning check box is not activated for the business unit on the Budget Row Versioning page at the time you finalize the budget.

• No budget analysis type sequence is defined on this page for the business unit.

• All of the analysis types in the budget analysis type sequence have been assigned to a budget version for the business unit.

By using budget row versioning you have the ability to preserve detailed budget rows in the Budgeting tables that match rows in the Project Transaction table. For example, assume that Budget Plan A is the active, finalized cost budget plan. The Project Transaction table contains budget rows with an analysis type of BUD for Budget Plan A, and a copy of Budget Plan A budget rows with an analysis type of CV1. Now you want to modify the budget plan. Instead of modifying and refinalizing Budget Plan A, you inactivate Budget Plan A and activate a new plan—Budget Plan B. When you finalize Budget Plan B, the system deletes the previous BUD rows for Budget Plan A from the Project Transaction table, creates new BUD rows for Budget Plan B, and creates a copy of the new Budget Plan B budget rows with an analysis type of CV2. Then if you want to view the detail rows in the Project Transaction table for analysis type CV1, you simply view Budget Plan A that contains identical rows.

You cannot use budget row versioning if you use Commitment Control.

See Defining Budget Plan Version Analysis Types.

Setting Up Budgets in Project Costing

This section discusses how to define budget alert thresholds.

Pages Used to Set Up Budgets in Project Costing

Defining Budget Alert Thresholds

Access the Budget Alerts page for the business unit, project, or activity.

Note. There are three Budget Alerts pages in Project Costing—one at the business unit level, project level, and activity level. The navigation path to these pages is based on whether you are defining the budget alert thresholds for the business unit, project, or activity. The field definitions that appear in this section apply to all three pages.

Calculation Type	Select the method for calculating how the budget alert threshold is determined. Available options are: Percentage (Actual vs. Budget): Triggers the budget alert when the actual cost of the project reaches the defined percentage (entered in the Percentage field) of the budgeted amount. The calculation for this type of budget alert threshold is: (Actual Costs) ÷ (Budget Amount) x 100 ≥ (Percentage field value) Remaining Amount: Triggers the budget alert when the actual cost of the project reaches the defined remaining amount (entered in the Amount field) of the budgeted amount. The calculation for this type of budget alert threshold is: (Budget Amount) – (Actual Costs) ≤ (Amount field value)
Alert Type	Select the level of alert that you are defining. Available options are: Medium: Visual status indicator appears as an inverted yellow triangle on the Budget vs. Actual page. High: Visual status indicator appears as a red square on the Budget vs. Actual page. A Low visual status indicator appears as a green circle on the Budget vs. Actual page if actual costs have not reached the medium or high thresholds, or if you do not define budget alert thresholds.
Operation	Displays the operand that the system uses to define the calculation that determines the budget alert threshold. <= (less than or equal to): Appears when you select Remaining Amount as the calculation type. >= (greater than or equal to): Appears when you select Percentage (Actual vs. Budget) as the calculation type. This field is not editable.
Percentage	Enter the percentage of the budget that triggers the budget alert. This field appears only if you select Percentage (Actual vs. Budget) as the calculation type.
Amount	Enter the monetary amount of the budget that triggers the budget alert. This field appears only if you select Remaining Amount as the calculation type.
Copy to Activities	Select to use these values as default settings at the activity-level when you create new activities for the project. This field appears only on the Project Definitions - Budget Alerts page.

Creating and Defining Budget Plans

To create and define budget plans, use the Budget Plan (PC_BUD_GENERAL) and Project Budget Detail (PC_BUD_DETAIL) components.

Budget plans define the budget type (cost or revenue), status, currency, and time span. They also specify the analysis type for all budget transactions that you create for the plan.

This section discusses how to:

• Create budget plans.

• Distribute project estimates to costing activities.

• Distribute project estimates across budget items.

• Distribute project estimates across periods.

• Copy budget items from another plan.

• Finalize budgets.

Pages Used to Create and Define Budget Plans

Creating Budget Plans

Access the Budget Plan page.

You can create one or more budget plans for a project; however, you can finalize only two plans on this page—one cost budget and one revenue budget.

General

Select the General tab.

Calendar

Select the Calendar tab.

Commitment Control

Select the Commitment Control tab. This tab appears only if you enable Commitment Control for Project Costing on the Installation Options - Project Costing Integration page.

Finalize

Select the Finalize tab.

Distributing Project Estimates to Costing Activities

Access the Budget Detail page.

Distribute Budget	Click to perform the action in the Distributed Budget field (Add To/Subtract From or Replace) to calculate the Target Budget field.
Distributed Budget (drop-down list)	Add To/Subtract From: Select to add (if you enter a positive budget adjustment) or subtract (if you enter a negative budget adjustment) the budget adjustment amount to the distributed budget to calculate the target budget. This is the default value when you enter the page. Add To/Subtract From is the only valid option if Commitment Control is enabled for the business unit and the selected budget plan is already finalized, because you cannot modify existing budget rows. With Commitment Control you can only add additional adjustment rows by using the Budget Items page. Replace: Select for the budget adjustment amount to replace the entire target budget amount when you click the Distribute Budget button, and the distributed budget amount, which is the amount that has already been distributed down to the period level, changes to zero for all impacted rows.
Expand	Select a specific WBS level for activities in that level to appear in the Project Budget Details grid. When you first enter the page, the WBS is expanded to the activity costing level and all budget item rows that are associated with activities are collapsed. Available options are: All Subtasks: Select for all activities and budget items associated with those activities to appear in the grid. Level 1 through Level 9: Select for costing activities in a specific WBS level to appear in the grid. Click the Expand icon (plus symbol) or Collapse icon (minus symbol) to collapse or expand individual rows.
Filter Budget Item	Select a budget item and click Search for only the selected budget item to appear in the grid. This field applies only when the WBS level is expanded to display budget items. The available budget items is based on the budget items that are associated with activities on the project. Note. If you use this option, activity totals can appear out of balance if they include budget items that do not appear in the grid.
Copy From Another Plan	Click to access the Copy From Another Plan page to copy budget items from a previous, saved version of a budget plan. You can copy from another plan only if this budget plan is not finalized.
Budget Plan	Click to access the Budget Plan page.
Budget Items	Click the Budget Items link at the bottom of the page to access the Budget Items component (PC_BUD_ITEMS) in a new browser window to create new budget items.
Budget vs. Actual	Click to access the Budget vs. Actual page for the project.

Budget Periods

Select the Budget Periods tab.

General Ledger Detail

Select the General Ledger Detail tab to view the GL business unit and other GL-related ChartField values that you select on the Project Budget Items - Adjust Budget Items page.

Commitment Control Detail

Select the Commitment Control Detail tab to view the ledger group, ledger, budget entry type, parent budget entry type, entry event, and other Commitment Control-related options that you select on the Project Budget Items - Adjust Budget Items page.

Adjust by Amount Spread Option

Select the Adjust by Amount spread option on the Budget Detail page to enter adjustment amounts at the project or summary activity level and spread the adjustments to each child costing activity under that project or summary activity by amount. Alternatively you can directly adjust specific activities. Select the Adjust by Amount option on the parent row of the costing activities that you want to adjust, and the Budget Adjustment fields for the selected project or activity and its children become editable.

If you select the Adjust by Amount spread option at an activity level where budget items exist, and the amount entered at the activity level is different from the sum of the budget items, the sum of the budget items takes precedence. For example, assume that you enter an activity budget adjustment value of 30,000 USD, and the sum of the individual budget item budget adjustments for the activity is 50,000 USD. The amount of the budget items overrides the value of the parent when you click Distribute Budget.

A warning appears if the sum of the budget adjustments that you enter at the child level do not match the budget adjustment amount at the parent level. You can either override the value at the parent level or return to the Budget Detail page and change a budget adjustment amount.

Adjust by Percentage Spread Option

Select the Adjust by Percentage spread option on the Budget Detail page to enter percentage adjustments at the project or summary activity level and spread the adjustments to each child costing activity under that project or summary activity by percentage. Alternatively you can directly adjust specific activities. Select this option on the parent row of the costing activities that you want to adjust. The Percent fields for the selected project or activity and its children become editable. Adjust by Percentage is not a valid option on rows with a distributed budget amount of zero.

Clear Values Spread Option

To clear the amounts in the Budget Adjustment column and leave the existing amounts in the Distributed Budget column:

1. Select a distributed budget option of Add To/Subtract From on the Budget Detail page.

2. Select a spread option of Clear Values on the Budget Detail page.

3. Click the Distribute Budget button.

To clear the amounts in the Budget Adjustment column and the Distributed Budget column, and change the value in the Target Budget column to zero:

1. Select a distributed budget option of Replace.

2. Select a spread option of Clear Values.

3. Click the Distribute Budget button.

   The system clears the values for the row in which you selected the Clear Values option, and all rows below it. For example, if you select the Clear Values option for a summary activity, the system clears the values for the summary activity and all of its detail activities.

The Clear Values option is valid if either of these scenarios exist:

• Commitment Control is enabled and the budget plan is not finalized.

• Projects Budgeting is enabled without Commitment Control for finalized or nonfinalized budgets.

Even Spread Option

Select the Even Spread spread option on the Budget Detail page to enter adjustments at the project or summary activity level and spread the adjustments evenly to each child costing activity under that project or summary activity.

Percentage Spread Option

Select the Percentage Spread spread option on the Budget Detail page to enter adjustments at the project or summary activity level and spread the adjustments based on the percentages entered for each child costing activity under that project or summary activity.

Distributing Project Estimates Across Budget Items

Access the Project Budget Items - Adjust Budget Items page.

If Commitment Control is enabled and the selected budget plan is already finalized, you can modify budget amounts only by inserting additional adjustment rows on this page.

The Clear Values spread option is the only method that you can use on this page to adjust budget amounts that have been distributed down to the period level.

Budget Items

Select the Budget Items tab to enter budget adjustments and view the distributed, total, and undistributed budgets for each budget item on the activity.

Project Detail

Select the Project Detail tab to modify project-related ChartField values for source type, category, and subcategory.

General Ledger Detail

Select the General Ledger Detail tab to modify the GL business unit and other GL-related ChartField values. You can budget to a finer level of detail by entering ChartField values on the budget rows. This example shows the PLANNING activity with two labor budget item—one for department 153000 and one for department 154000:

To budget down to the ChartField level:

1. On the Project Budget Items - Adjust Budget Items page, create as many budget item rows as needed for the activity.

2. On the General Ledger tab of the Project Budget Items - Adjust Budget Items page, enter the specific ChartField combinations for each budget item.

3. Distribute each budget item separately.

Note. Multiple budget items do not roll up to a single budget item on the Budget Detail page.

Combination editing is not available through project budget creation in Project Costing.

Commitment Control Detail

Select the Commitment Control Detail tab to modify the Commitment Control-related information.

Adjust by Amount Spread Option

Select the Adjust by Amount spread option on the Project Budget Items - Adjust Budget Items page to spread the budget adjustment for a costing activity to budget items manually by entering the desired amounts. You can also adjust specific budget items directly. The fields in the Budget Adjustment column become editable.

A warning appears if the sum of the budget adjustments that you enter for the budget items do not match the budget adjustment amount for the costing activity. You can either override the value at the activity level or return to the Project Budget Items - Adjust Budget Items page and modify a budget adjustment amount.

In the following example, the budget adjustment of 4,000,000 USD for the PLANNING activity is spread by the amount of 2,000,000 USD to the SALARY budget item, 1,000,000 USD to the MATER budget item, and 1,000,000 USD to the MISC budget item.

After you click the Distribute Budget button, the system:

• Replaces the previous value in the Budget Adjustment field with the new adjusted amount.

• Updates the Undistributed Adjustment field in the page header.

• Updates the Target Budget column in the Budget Item Distribution grid.

• Changes the Budget Adjustment column to read-only.

• Changes the Spread Option value to Select Spread.

Adjust by Percentage Spread Option

Select the Adjust by Percentage spread option on the Project Budget Items - Adjust Budget Items page to adjust particular budget items by percentage. The fields in the Percentage column become editable.

The system calculates the budget adjustment for each budget item as the (distributed budget) × (percentage).

A value in the Distributed Budget column for a budget item indicates that the amount is distributed down to the period level. If an activity has budget items with both distributed budget amounts and budget adjustment amounts, the system ignores the budget adjustments.

In the following example, assume that the PLANNING activity has a 15,000 USD budget adjustment and a 4,000,000 USD distributed budget:

The system disregards the existing budget adjustment amount when performing an adjustment by percentage on this page. In this example, the system calculates a new budget adjustment amount for the MATER budget item of (50 percent) × (1,000,000 USD) = (500,000 USD), a new MISC budget adjustment of (40 percent) × (1,000,000 USD) = (400,000 USD), and a new SALARY budget adjustment of (50 percent) × (2,000,000 USD) = (1,000,000 USD).

Note. You cannot copy budget item distribution percentages from one activity to another, or from one budget item to another.

Even Spread Option

Select the Even Spread spread option on the Project Budget Items - Adjust Budget Items page to spread the budget adjustment evenly across the budget items for the selected costing activity.

The calculations that the system uses to determine the budget adjustment for each item are based on the budget adjustment amount on the Budget Detail page. For example, assume that three budget items exist for a costing activity with a total budget adjustment amount of 24,000 USD. At the budget item level, the adjustment amounts are 8,000 USD for one budget item, zero adjustment amount for the second budget item, and 16,000 USD for the third budget item. The system divides the 24,000 USD evenly between the three activities, for a result of 8,000 USD each, as shown in this example:

If you enter the Project Budget Items - Adjust Budget Items page with a zero value in the Budget Adjustment field for the activity, and select a spread option of Even Spread, the Budget Adjustment field in the page header becomes editable for you to enter a budget adjustment value at the activity level. The Budget Adjustment field changes to read-only when you click Distribute Budget.

Percentage Spread Option

Select the Percentage Spread spread option on the Project Budget Items - Adjust Budget Items page to spread the budget adjustment amount for the activity to budget items based on the percentages that you enter. The sum of the percentages must equal 100 percent. When you select this option the fields in the Percentage column become editable.

Similar to the Even Spread option, the calculations that the system uses to determine the budget adjustment for each item are based on the budget adjustment amount on the Budget Detail page. For example, assume that two budget items exist for a costing activity with a total budget adjustment amount of 24,000 USD. At the budget item level, the adjustment percentages are 30 percent for one budget item and 70 percent for the second budget item. The system multiplies the 24,000 USD by 30 percent and 70 percent to arrive at the budget distribution amount.

If you enter the Project Budget Items - Adjust Budget Items page with a zero value in the Budget Adjustment field for the activity, and select a spread option of Percentage Spread, the Budget Adjustment field becomes editable for you to enter a budget adjustment value at the activity level. The field changes to read-only when you click Distribute Budget.

Distributing Project Estimates Across Periods

Access the Project Budget Periods - Adjust Budget Periods page.

This page contains additional spread methods that you can use to adjust budgets to the period level. Budget amounts that you distribute on this page roll up to the budget item, activity, and project level.

Calculate Amount From Quantity

The Calculate Amount From Quantity page appears when you select the Adjust by Amount spread option on the Project Budget Periods - Adjust Budget Periods page, enter the quantity and unit of measure, and click the Calculate Amount button.

Rate Calculation Basis	Select one of these options: Employee ID: Select for a list of employee cost data to appear in the Rates by Employee ID grid. Job Code: Select for a list of job code cost data to appear in the Rates by Job Code grid. Project Role: Select for a list of project role cost data to appear in the Rates by Project Role grid. After you select the rate calculation basis, the list of detailed rate rows appears in the grid. Select the row that contains the desired rate for the system to use to calculate budget adjustments by period for labor.
Rate Type	This field appears only for rates that require multi-currency conversion. If the rate that you select on the Calculate Amount From Quantity page uses a different currency code than the budget plan currency code, enter the rate type that the system uses to convert the rate to the budget plan currency code.
OK	Click to return to the Project Budget Periods - Adjust Budget Periods page. Any amount that exists in the Distributed Budget field for the period will be overridden with the new calculated amount.

Adjust by Amount Spread Option

Select Adjust by Amount in the Spread Option field on the Project Budget Periods - Adjust Budget Periods page to spread the budget adjustment for the budget item to periods manually by entering the desired amounts, or adjust a particular periods directly. Fields in the Budget Adjustment column become editable.

To use the Adjust by Amount option, the undistributed adjustment amount that appears in the Budget Periods grid on the Budget Detail page must equal zero. You can change the undistributed adjustment amount in the Budget Periods grid to zero and only distribute the budget adjustments by the amount that appears in the Period Distribution grid on the Project Budget Periods - Adjust Budget Periods page. Alternatively, you can evenly spread the undistributed adjustment amount across budget periods and also distribute the budget adjustments by the amount that appears in the Period Distribution grid.

The budget amount calculation is based on the selected distributed budget option:

• Add To/Subtract From: Direct entry of budget adjustment amounts against a specific budget period. Upon distributing these budget adjustments, this amount is added to or subtracted from any existing distributed budget adjustment for that specific period.

• Replace: Direct entry of budget adjustment amounts against a specific budget period. Upon distributing these budget adjustments, this amount replaces any existing distributed budget adjustment for that specific period.

Adjust by Percentage Spread Option

Select the Adjust by Percentage option on the Project Budget Periods - Adjust Budget Periods page to adjust particular budget periods by percentage directly. The fields in the Percentage column become editable.

The budget amount calculation is based on the selected distributed budget option:

• Add To/Subtract From: (Budget adjustment of period) x (Percentage entered for budget period) = (Distributed budget at period level).

  Note. Any existing distributed budget amounts are added to this calculation.

• Replace: (Budget adjustment of period) x (Percentage entered for budget period) = (Distributed budget at period level).

  Note. Any existing distributed budget amounts are overridden with this calculation.

Even Spread Option

Select the Even Spread option on the Project Budget Periods - Adjust Budget Periods page to spread the budget adjustment evenly across the budget periods for the selected costing activity and budget item.

The budget amount calculation is based on the selected distributed budget option:

• Add To/Subtract From: (Budget adjustment at item level) ÷ (Number of periods) = (Distributed budget at period level).

  Note. Any existing distributed budget amounts are added to this calculation.

• Replace: (Budget adjustment at item level) ÷ (Number of periods) = (Distributed budget at period level).

  Note. Any existing distributed budget amounts are overridden with this calculation.

Percentage Spread Option

Select the Percentage Spread option on the Project Budget Periods - Adjust Budget Periods page to spread the budget adjustment amount for the activity to budget items based on the percentages that you enter. When you select this option the fields in the Percentage column become editable.

The budget amount calculation is based on the selected distributed budget option:

• Add To/Subtract From: (Budget adjustment at item level) x (Percentage entered for each budget period) = (Distributed budget at period level).

  Note. Any existing distributed budget amounts are added to this calculation.

• Replace: (Budget adjustment at item level) x (Percentage entered for each budget period) = (Distributed budget at period level).

  Note. Any existing distributed budget amounts are overridden with this calculation.

Copying Budget Items from Another Plan

Access the Copy From Another Plan page.

To copy budget items from another plan:

1. Save the existing plan before you copy budget rows from another plan.

2. Select a budget plan to copy other than the current plan.

   The currency and the number of budget periods of the plan that you are copying must be the same as the current plan if you want to copy budget amounts. If you copy budget amounts from a plan with a different calendar and number of period, or a different currency code, you must manually change those values to match current plan.

3. (Optional) Select an activity to copy budget item amounts by period from a specific activity on the selected plan to the current plan.

   Leave the Activity field blank to copy all activity budget item amounts by period from the selected plan to the current plan.

4. Select Overwrite existing values to delete existing budget rows in the current plan before copying new budget amounts into the plan.

   Clear this option to append existing budget rows with new budget amounts.

   For example, if you copy plan ID 1 and activity row 1 to plan ID 2, and you select the Overwrite existing values option, the system replaces activity row 1 in plan ID 2 with row 1 in plan ID 1.

When you copy budget rows from another plan, the system populates the existing plan with the accounting date of the copied plan, and the transaction date of the current date.

Finalizing Budgets

Access the Budget Plan page.

Click the Finalize button on the Finalize tab of the Budget Plan page to finalize a project budget plan. Only active budget plans can be finalized. All other plans of the same type (cost or revenue) for the same project must be inactive. Only one budget plan of each type can be finalized per project. You can adjust budget plans and refinalize the budget.

See Also

Integrating with Commitment Control

Project Costing Reports

Maintaining Budget Plan Versions

This section discusses how to create budget plan versions.

Pages Used to Maintain Budget Plan Versions

Creating Budget Plan Versions

Access the Budget Plan page.

Note. Before you can create budget plan versions, you must enable budget row versioning for the business unit, and define the sequence of analysis types that the system uses to distinguish historical cost and revenue budget versions.

Click the Finalize button on the Finalize tab for an active cost budget or revenue budget. The system:

• Verifies that there is a remaining analysis type in the budget analysis type sequence on the Budget Row Versioning page that has not been previously assigned to a version.

  When budget row versioning is enabled, the first time that you finalize a project budget for the business unit, the system assigns the first analysis type from the cost or revenue budget analysis type sequence on the Budget Row Versioning page to a copy of the budget plan rows. Each subsequent time that you finalize a project budget, the system updates a copy of the new finalized budget rows with the next available analysis type from the sequence.

• Makes a copy of the current, finalized budget detail rows and updates the analysis type with the next available value in the budget analysis type sequence.

• Assigns new, unique values to the Transaction ID field (RESOURCE_ID) of the copied rows, and stores the resource ID from the original rows in the Original Transaction ID field (RESOURCE_ID_FROM) of the copied rows.

• Stores the copy of the budget detail rows, with the new analysis type, in the Project Transaction table.

• Saves the current, finalized budget, with the original analysis type, in the Project Transaction table.

  The current, finalized budget rows are identical to the latest historical budget version in the Project Transaction table, except for the analysis type. The analysis type on the historical rows is based on the latest available analysis type from the Budget Row Versioning page.

If budget row versioning is enabled but all of the analysis types in the budget analysis type sequence have been assigned, a warning message appears when you click Finalize that prompts you to either abort the finalization process or proceed. If you abort the process, you can return to the Budget Row Versioning page and append the analysis type sequence. If you proceed with the finalization process without appending the analysis type sequence, the system does not retain a historical copy of the finalized budget rows in the Project Transaction table. However, all previously-created historical rows remain the Project Transaction table.

See Also

Defining Budget Plan Version Analysis Types

Processing Budget Rows From Microsoft Project

This section discusses how to create budget rows by using data created in Microsoft Project 2002.

Page Used to Process Budget Rows From Microsoft Project

See Also

Pages Used to Review and Modify Interface Data

Loading Transaction Data

Managing Budget Exceptions

Enterprise PeopleTools 8.46 PeopleBook: PeopleSoft Process Scheduler

Creating Budget Rows by Using Data Created in Microsoft Project 2002

Use this method for budget rows created in Microsoft Project 2002.

To create a budget using Microsoft Project 2002:

1. Stage Microsoft budget data in the Project Transaction Interface table by using the appropriate integration process.

2. Run the Load Third-Party Transactions process from the Load Transactions page to load data from the Project Transaction Interface table to the Project Transaction table.

See Also

Managing Budget Exceptions

Integrating with Microsoft Project 2002

Integrating Budget Data with Planning and Budgeting

Project Costing integrates with Planning and Budgeting, which is an application specifically designed for preparing budgets and providing the sophisticated processing necessary to perform the budgeting calculations and forecasting required to produce a truly viable budget.

This section discusses how to:

• Send Project Costing transactions to Planning and Budgeting.

• Import budget data from Planning and Budgeting into Project Costing.

• View budget transactions.

See Also

PeopleSoft Enterprise Planning and Budgeting 8.9 PeopleBook, "Integrating With Other Applications," Using Data from PeopleSoft Projects

Pages Used to Integrate Budget Data with Planning and Budgeting

Sending Project Costing Transactions to Planning and Budgeting

Access the Send to Budgeting page.

Option	Select an option to send all or specific transactions to Planning and Budgeting.
Scenario	Select a scenario, which is a PeopleSoft ChartField used to identify different assumptions or types of budget information.

After the historical data is in the Project Based Ledger table (LEDGER_PROJ) and is copied to the PeopleSoft Enterprise Warehouse, Planning and Budgeting users can use it to build a budgeting model and prepare budget data. When the budget is complete, a Planning and Budgeting user moves the data back into the Project Based Ledger table by using the Import Budgeting Data page.

After a budget is sent back to the Project Based Ledger table, it is ready for transfer to Project Costing.

See Also

Entering and Maintaining ChartField Values

Importing Data from Enterprise Performance Management Budgeting

PeopleSoft Enterprise Planning and Budgeting 8.9 PeopleBook, "Integrating With Other Applications," Exporting Financial Data From PeopleSoft Budgeting

Importing Budget Data from Planning and Budgeting into Project Costing

Access the Retrieve from Budgeting page.

After a budget is generated in Planning and Budgeting, and the budget information is placed in the Project Based Ledger table, you can import it into the Project Transaction table using the Retrieve from Budgeting Application Engine process (PC_BD_TO_PC). The Retrieve from Budgeting process copies the information from the Project Based Ledger table to the Project Transaction table.

If you plan on creating multiple budget scenarios for your projects in Planning and Budgeting, it is important that you create multiple budget analysis types in Project Costing, and adjust the Retrieve from Budgeting process so that individual scenarios are mapped to different analysis types. This is necessary if you want to track multiple scenarios in Project Costing. If your Application Engine process maps all scenarios to the same analysis type, each subsequent scenario will add additional resource transactions of the same analysis type.

If a budget row does not contain an analysis type from the Project Based Ledger table, the integration process assigns the first analysis type from the analysis group that is specified on the Project Costing Definition page for the project.

Note. PeopleSoft delivers sample data that contains analysis types BD1 (Total Cost Budget - Scenario 1) through BD9 (Total Cost Budget - Scenario 1) to facilitate multiple budget scenarios.

See Also

PeopleSoft Enterprise Planning and Budgeting 8.9 PeopleBook

Viewing Budget Transactions

Access the Transaction List page.

You can create a special analysis group that retrieves only transactions with budget-related analysis types.

See Also

Viewing Project Transactions

Defining Analysis Groups

Analyzing Budgets

This section discusses how to compare budget amounts to actual costs and revenues.

Pages Used to Analyze Budgets

Comparing Budget Amounts to Actual Costs and Revenues

Access the Budget vs. Actual page.

The currency code for the Budget vs. Actual report is based on the project business unit's currency code.

Project Budget Item

Use the Project Budget Item grid to view budgeted amounts for the selected activity node by budget item and budget period. Every budget period has a budget row even if a budget amount does not exist for the period. The number of rows that the system inserts is based on the start and end dates of the project.