Exercise - Set up basic budgeting components
In this exercise, you need to set up the basic budgeting for your company. Use the company USMF in the sample data set to practice.
To set up the basic budgeting for your company, follow these steps:
Open Budgeting > Setup > Basic budgeting > Dimensions for budgeting.
Select the financial dimensions in the Chart of accounts dimension list.
Select the arrow button to move the financial dimensions to the Budget dimension list.
Open Budgeting > Setup > Basic budgeting > Budget models.
Select New to create a budget model.
Enter an identifier and a name for the budget model.
Enter other details about the model as needed, and then add any submodels.
Open Budgeting > Setup > Basic budgeting > Budget codes.
Select New and enter a code and a description, such as Expense Transfer and Expense to Expense.
Select a budget type, such as Original budget, Revision, or Transfer.
If this code should be the default code when the system automatically creates documents of the selected budget type, select the Set as default code checkbox.
Optionally, select a Reason code.
Optionally, select a workflow. If you select a workflow, the system submits every budget register entry that uses this code to the workflow.
Open Budgeting > Setup > Basic budgeting > Budget transfer rules.
Select New, enter an identifier and a description for the budget transfer rule, and then select an account structure.
Select Add to define the financial dimension criteria for a rule member. For example, you could define criteria for the Sales department. If someone enters a transfer that has budget account entries that don't contain the Sales department financial dimension, the rule would stop the transfer.
If you activate the workflow for the budget code that's associated with the budget type, the system submits the transfer for approval.
You can select Add again to add multiple rule members to the same rule. You can't specify the same financial dimension criteria in more than one rule member for a transfer rule. However, you can have overlaps in financial dimension criteria across budget transfer rules so that the same financial dimension value can belong to multiple budget transfer rules.
To enable the budget transfer rules that you defined, select Use rules for budget transfers on the Budgeting > Setup > Basic budgeting > Budget parameters page.
Open Budgeting > Setup > Basic budgeting > Budget allocation terms.
Select New and then enter an identifier and a description for the budget allocation term.
Select Add and then enter an allocation percentage of the total amount.
Select Copy to select an existing allocation term to copy for this budget allocation term.
Select the percentage, and then select a value for one or more financial dimensions.
Repeat steps 21 through 24 for each budget allocation term to set up.