Budget Planning using allocations

In this blog I am going to describe the setup required for automatic allocation examples that can be used within Budget Planning:

• Distributing budget plan lines from a parent to a child budget plan
• Copy budget plan lines from one scenario to another using Period Allocation
• Allocating budget plan lines monthly also using Period Allocation
• Aggregating child budget plan lines to the parent budget plan

1. Budgeting> Setup> Budget Planning> Budget Planning Configuration
   Scenarios within demo data will be used, Baseline and Forecasted
   
   
   
2. Stages within demo data will be used
   
   
3. Workflows
   Create a Parent Workflow with Stages: Initial and CFO review
   
   
   
4. Create the Child Workflow with Stages: Distribute, Submitted, Ready for approval and Approved
   Require parent budget plan: True
   
   
   
5. Scenario constraints
   Ensure that the Parent and Child Workflows have access to edit at all stages that will be used for both the Baseline and Forecasted scenarios
   
   
   
6. Period allocations
   General ledger> Setup> Periods> Period allocation category
   Monthly period allocation – will distribute budget amounts by the specified monthly percentage
   

   No change period allocation – will be used to copy lines from one scenario to another
   
   
   Note – See this TechNet article for more information on Period Allocations https://technet.microsoft.com/en-us/library/aa582352.aspx
   
   
   

7. Budgeting> Setup> Budget Planning> Budget Planning Configuration> Allocation Schedules

   Add
   Allocation schedule: Distribute
   Allocation method: Distribute
   Source Scenario: Baseline
   Destination Scenario: Baseline

   Add
   Allocation schedule: Copy Baseline to Forecasted
   Allocation method: Allocate across periods
   Period key: 40
   Source Scenario: Baseline
   Destination Scenario: Forecasted

   Add
   Allocation schedule: AggregateBaseline
   Allocation method: Aggregate
   Source Scenario: Baseline
   Destination Scenario: Baseline

   Add
   Allocation schedule: AggregateForecasted
   Allocation method: Aggregate
   Source Scenario: Forecasted
   Destination Scenario: Forecasted

   Add
   Allocation schedule: MonthlyBaseline
   Allocation method: Allocate across periods
   Period Key: Month
   Source Scenario: Baseline
   Destination Scenario: Baseline

   

8. Stage allocations

   Add
   Budget planning workflow and stage: Parent workflow, Initial
   Allocation Schedule: Distribute

   Add
   Budget planning workflow and stage: Child workflow, Submitted
   Allocation Schedule: MonthlyBaseline

   Add
   Budget planning workflow and stage: Child workflow, Ready for approval
   Allocation Schedule: Copy Baseline to Forecasted

   Add
   Budget planning workflow and stage: Parent workflow, CFO Review
   Allocation Schedule: Aggregate Baseline

   Add
   Budget planning workflow and stage: Parent workflow, CFO Review
   Allocation Schedule: Aggregate Forecasted
   

9. Budgeting> Setup> Budgeting workflows
   Create new> Budget Plan workflows

   Parent Budget Plan with elements in the following order:
   Start
   Activate associated budget plan
   Budget planning stage allocation
   Review associated budget plan
   Stage transition budget plan
   Budget planning stage allocation
   Review budget plan
   End

   
   Activate

   Create new> Budget Plan workflows
   Child Budget Plan with elements in the following order:
   Start
   Stage transition budget plan
   Budget planning stage allocation
   Review budget plan
   Stage transition budget plan
   Budget planning stage allocation
   Review budget plan
   Stage transition budget plan
   End
   

10. Budgeting> Setup> Budget plan> Process

    Select the Budget Cycle, Ledger, Attachment Folder and Organization Hierarchy being used

    In this example, Finance Department is the top of this Organization Hierarchy, thus will be assigned the Parent Workflow
    All other Departments and Business Units are assigned the Child Workflow

    With the Parent Workflow selected in the stage rules, the Initial and CFO review stages must have Associate budget plan, Add lines and Modify Lines selected, as well as a valid template assigned.
    

    With the Child Workflow selected in the stage rules, the Distribute and Approved stages needs to have Associate budget plan, Add lines and Modify lines selected, as well as a valid template assigned.

    The stages of Submitted and Ready for approval need to only have Add lines and Modify lines selected, as well as a valid template assigned.

    

     

11. Create a budget plan using the DEMO Allocations Process
    

    Add lines that include the dimensions used within the Organizational Hierarchy
    

    Submit Parent Workflow

12. Child budget plans are created for the Sales and Marketing Department and IT Department are created with the values apportioned monthly as set in the period allocation key.
    
    Complete the first review for each child budget plan
13. After the first review, the budget plan lines from Baseline scenario are copied over into the Forecasted scenario and the stage has progressed to Ready for approval
    

    Complete the review stage and child budget plans are now approved with a document status of Finalized.

14. The parent budget plan needs to be completed as the Associated Child Budget Plans are finalized
    
15. The workflow will now aggregate the Child budget plan lines up to the Parent budget plan for both Baseline and Forecasted scenarios
    

    

16. The Parent budget plan is now reviewed, finalized and completed