Budgeting - Budget Alerts User Guide

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Budget Entry Overview

The Budgeting module provides online budget updating and inquiry capabilities. Subject to the database segment security, use the Budgeting Entry and Maintenance function to input budget net period amounts and review net period balances in the database.

The following capabilities ease data entry:

• Enter budget net period balances directly into a fully qualified account (FQA) for an authorized database segment.

• Copy FQA balances from a displayed segment to another authorized database segment for the same FQA.

• Derive amounts by using calculations and apply the result to selected net period balances in the authorized database segment.

• Distribute a net period balance equally to all or selected periods of the authorized database segment.

As each budget calculation is performed, the Budgeting module displays calculated results on the screen for review. When selecting the Save action, the database updates immediately, and if requested, generates an audit trail.

The Budgeting module allows direct updating of the database, subject to the security setting for each of the database segments. Typically, only budget and statistical segments have a Security Code that allows a user to directly update the database through the budget entry. The financial database segments should have a Security Code of either Update by Posting for the current year or No Update Allowed for historical information.

Users may display financial segments through the Budgeting module.

Modules to Set Up Before Budgeting

IFS IDEAS requires the completed General Ledger module setup before defining Settings and Configuration in the Budgeting module.

Refer to the General Ledger manual for information on how the GL module should be configured.

Budget Entry and Maintenance

The Budget Entry and Maintenance screen is divided into three areas:

• The top area allows the selection of the entry parameters such as the ledger, FQA, precision, etc.

• The left area is a display section, showing the net period balances for a segment of the database for use in calculating the budget information.

• The right section is used for loading or calculating the net period budget amounts for an authorized database segment.

To enter budgets into an FQA, the user must:

1. Complete the entry parameters section at the top of the screen to select a ledger, FQA, etc.

2. Select a segment in the Display Segment for display or copying of information (optional).

3. Select a segment in the Edit Segment section to modify using the Edit Details, Base Value, and Edit Type options.

4. Update the Segment.

5. Save the Segment.

Note: The key to efficient budget entry is determining the best edit type method to use for updating the Net Period values.

Using Budget Entry and Maintenance Screens 

Click on the  icon to load the Budget Entry and Maintenance function, or select Budget Entry and Maintenance from the Functions drop-down menu.

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Data Entry Parameter Section (Top Area of Screen)

• Ledger ID – Select the drop-down arrow and select a Ledger ID. If only one ledger is defined, it displays automatically. The Ledger ID elements, together with fields boxes beneath the elements display on the screen. Use the blank fields to enter an FQA Account (see the instruction below for Account). 

• Account – Enter an FQA into the blank text boxes. Click in the field box to produce a spyglass button. Click the spyglass button to search. The Chartmaster Description for the descriptive element, typically the account element, appears below the FQA.

• Precision – Select a precision. The precision indicates the number of decimal places used for currency amounts in the Budgeting module. This does not affect values stored in the underlying database.

Display Segment Section

The left section of the screen displays net period balances from a database segment while editing or calculating a new budget using the Edit Segment and Edit Details sections at the right of the screen. For example, prior year actual information could be displayed as a basis for developing current year budgets.

• Segment – Select a database segment. The selected segment is for display purposes, so any valid segment can be used. The Display Segment grid fills with the net period balances for the selected segment. To use balances from the Display Segment in the Edit Segment, click to highlight the range of period(s) to use.

• Select All Periods – Select this checkbox to select all periods in the segment.

Edit Segment Section

Budgets are entered or calculated in the Edit Segment section at the right of the screen.

• Edit Segment – Select the database segment into which to load the budgets. The Budgeting module checks the selection to verify that the database segment is valid for budget loading, as defined in the GL module. Generally, budget and statistical segments are defined as updatable, but financial segments are not. Changes to financial segments should be made using the General Ledger module’s Journal Entry process to maintain proper audit trails.

• Select All Periods – Select this checkbox to select all periods in the segment for update and change.

Edit Details Section

Once a segment has been selected in the Edit Segment section, current period values display.  Use the Edit Details options to modify the existing period values of the segment to create the budget.

• Base Value – Enter a base value to update the selected period(s). Whether this base value replaces one period or becomes the basis of updating multiple periods depends on the Edit Type selected. Remember when entering net period balances for liabilities and income accounts to enter them as credits by using the minus sign (-) before the amount.

• Edit Type – Each of the edit types is summarized below. 

  • Edit Value – Select this option to enter or change the value for a specific period.

1. Click the Edit Value radio button.

2. Select the period to edit by clicking on the period on the Edit grid.

3. Enter the new budget in the Base Value field.

4. Click the Update Segment button to update the grid.

• Display Value – Select this option to copy values from the Display Segment.

1. Click the Display Value radio button.

2. Highlight the range of periods in the Display Segment grid from which to copy.

3. Highlight the range of periods to copy to in the Edit Segment grid, or mark the Select All Periods option to select all periods. The copy to and copy from periods should be the same in number.

4. Click the Update Segment button to update the grid.

• Spread Value – Select this option to distribute the Base Value over the range of selected periods. To spread a value:

1. Click the Spread Value radio button.

2. Highlight the range of periods in the Edit Segment grid to which to spread the value, or click on the Select All Periods option to select all periods.

3. Enter the value to be spread in the Base Value field.

4. Click the Update Segment button to distribute the Base Value across the selected periods. For example, if the Base Value is 20 and it is spread over 4 periods, the value 5 is spread to each period.

• Repeat Value – Select this option to repeat a value over the selected range of periods.

1. Click the Repeat Value radio button.

2. Highlight the range of periods in the Edit Segment grid to which to repeat the value, or click on the Select All Periods option to select all periods.

3. Enter the value to be repeated in the Base Value field.

4. Click the Update Segment button to repeat that value in the selected periods.

• Percentage  – Select this option to increment the budget for each period by a user-entered percentage.

1. Click the Percentage radio button.

2. Highlight the desired range of periods in the Edit Segment to which to apply the percentage, or click on the Select All Periods option to select all periods. 

3. Enter the Monthly Percentage Increase value in the Base Value field.

4. Click the Update Segment button to update each period. This option inserts the Display Segment value in the first Edit Segment period selected, then increases the second and subsequent selected periods by the Base Value percentage.

• Increment  – Select this option to increment the budget each period by a user-entered increment amount. To use the increment option:

1. Click the Increment radio button.

2. Highlight the range of periods in the Edit Segment grid to increment, or click on the Select All Periods option to select all periods.

3. Enter a value in the Base Value field that will be loaded into the first period highlighted in the Edit Segment grid.

4. Click the Update Segment command button. A dialog box prompts the user to enter the amount to be used for the incremental operation.

• Enter an amount and click OK. 

The Base Value is then loaded into the first selected period. The second period will be updated with that value plus the increment amount. The third period will be equal to the second period plus the increment amount, and so on.

Buttons located along the bottom of the screen allow users to perform certain actions:

• Audit Trail – Select this checkbox to print an audit trail record after changes are saved.

• Update Segment – Click this button to update the values in the Edit Section grid based on the Base Value and Edit Type selected.

• Clear List – Click this button to remove the values that display in the Display Section and the Edit Section grids.

• Save Segment – Click this button to save the period balance changes displayed in the Edit Section grid.

• Close – Click this button to exit the Budget Entry and Maintenance screen without saving changes made since the last Save Segment command.

Budget Alerts

Budget Alerts allow for better control of AFE and financial budgets. This feature allows for controls to be added to the day-to-day data entry and approval of transactions that will affect a planned budget. These controls include a threshold that once crossed will begin to alert the data entry and approver users that their activity is approaching the limit of the budget. 

A variance can be defined that will allow processing above a specified percentage of the stated budget. Once the variance is exceeded, approval of transactions is disallowed unless either the budget or variance is increased.  The addition of these tools should help managers to better control the budgets that are assigned to them.

As transactions are entered to the system that will affect a budget, the information is stored in a commitment table. The table will contain entries from across the application including entries in GL, AP, PD, RQ and WH to give a total picture of what has been committed against the budget. 

New entries are then compared against this commitment table to allow the alerts to occur when the threshold or budget + variance percentage are exceeded.

Budget Alert Parameters

The Budget Alert Parameters screen is used to define those details that will help control the entry of transactions that will affect the budget. 

Open

• Ledger – Select the ledger that contains the budget segment. After selecting the ledger, the Elements defined on that ledger will appear in the Define Element(s) section of the screen.

• Currency – Select the currency that this budget is for. This is used to identify transactions in subledgers such as Accounts Payable.

• Budget

  • Budget Segment – Select the financial Segment(s) that contain the budget information.

  • Actual Segment – Select the transactional Segment(s) that will be compared against the budget segment(s)

• Define Elements – Select the elements for control. As an example, using the elements in the screenshot above, if a budget was defined specific to entity/account/AFE levels, then choose those elements in this section.

• Threshold for notification

  • Threshold Percentage – Enter the percentage as a whole number. When commitments exceed this percentage of the budget, new entries will prompt a warning that the threshold has been exceeded. The approver will also receive the warning during the Approval process.

• Excess allowed and variance for allowable excess

  • Excess Allowed - If entries greater than the stated budget will be allowed, then select this checkbox.

  • Allowable Excess Percentage – Enter the percentage as a whole number.  The percentage entered here is added to the recorded budget to allow entries in excess of the budget.  Once the budget + variance percentage is reached, transactions cannot be approved and therefore will be disallowed from processing. To allow the transaction to be approved, either the original budget amount must be increased, or the variance percentage must be increased.

Budget Alert Processing

When alert parameters have been defined for a budget, IFS IDEAS will begin to track the commitments to the element combination selected. These commitments will include:

• Posted and unposted journal entries to the GL.

• Open and closed invoices in AP.

• Open stock and nonstock purchase documents in PD.

• Open stock and nonstock purchase requisitions in RQ.

• Open stock and nonstock material requisitions in WH.

Data Entry

As each new entry is entered to IFS IDEAS throughout the system, the entry is evaluated against the existing commitments to determine the following conditions:

• Exceeds Threshold

  • Example:

    • Budget is set to 100,000.00.

    • Threshold is set to 90%.

    • Each new entry that exceeds 90,000.00 in commitments will generate a report at the point of saving the entry to warn the user that the threshold has been exceeded.

Note: This report is displayed during the validation of journals in the GL. All other modules display the report when the entry is saved.

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• Exceeds Budget + Variance

  • Example:

    • Budget is set to 100,000.00.

    • Variance is set to 5%.

    • Budget + Variance = 105,000.00.

    • Each new entry that exceeds 105,000.00 in commitments will generate a report at the point of saving the entry to warn the user that the total allowable budget amount has been exceeded.

Note: This report is displayed during the validation of journals in the GL. All other modules display the report when the entry is saved.

• The data entry user is not prevented from saving the entry even though it has exceeded the total allowable budget.

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Approval Processing

During the approval process of the various entries, the existing commitments are evaluated again:

• Exceeds Threshold

  • Example:

    • Budget is set to 100,000.00.

    • Threshold is set to 90%.

    • Each new entry that exceeds 90,000.00 in commitments will generate a report at the point of approving the entry to warn the approver that the threshold has been exceeded.

    • Note: This report is displayed during the validation of journals in the GL. All other modules display the report when the entry is approved.

    • Entries that have exceeded the threshold can still be approved and processed.

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• Exceeds Budget + Variance

  • Example:

    • Budget is set to 100,000.00.

    • Variance is set to 5%.

    • Budget + Variance = 105,000.00.

    • Each new entry that exceeds 105,000.00 in commitments will generate a report at the point of approving the entry to warn the user that the total allowable budget amount has been exceeded.

    • Note: This report is displayed during the validation of journals in the GL. All other modules display the report when the entry is saved.

    • The approver is prevented from approving the entry.

      • To process the entry further, either the variance or the total budget must be increased.

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Data Entry Screens

• GL

  • Journal Entry

  • Journal Corrections

• AP

  • Invoice Entry (Stock and Non-Stock)

  • Miscellaneous Invoice Entry

  • Auto Invoice

• PD

  • Purchase Document Entry (Stock and Non-Stock)

• RQ

  • Purchase Requisition Entry (Stock and Non-Stock)

• WH

  • Material Requisition Entry (Stock and Non-Stock)

Approval Screens

• GL

  • Journal Validation

• AP

  • Transaction Approval

• PD

  • Batch Purchase Document Approval

  • Amendment Approval

• RQ

  • Purchase Requisition Approval

• WH

  • Material Requisition Approval