Annual Budget Settings Tab

The Annual Budget Settings tab allows administrators to define the defaults used when working with annual budget processing.

Biennial Budget Processing allows you to budget for two years at a time, every other year. Long-range budget forecasting allows you to create up to 30 years of additional forecasted budget data.

To access the tab in Company FM Settings, go to Maintenance > Financial Management > Company FM Settings.

1. The Maintain Prior Year Estimated Expenses and Revenues check box indicates whether the system should maintain estimated revenues and expenses for the prior year.
2. The Calculate Current Year Balance Method indicates what method to use when calculating the current year values for budget comparisons. The options are: Current Value and Value at a Certain Date.
3. The Use Actual Balance Through End Of is the month through which the balance is calculated. This box is displayed only if the Calculate Current Year Balance Method value is Value at a Certain Date. January is the default value.
4. The Calculate Current Year Extrapolate Balance Method indicates what method to use when extrapolating the balance for budget comparisons. The options are: Extrapolate Value over Full Year and Extrapolate Based on 5-Year History.
5. In Default Budget Method, select the calculation method that should be used for budget processing. The default is Miscellaneous Transactions.

   Show available options: Miscellaneous Transactions, Last Year’s Actual * % Change, Last Year’s Adopted * % Change, Last Year’s Amended * % Change, Greater of Actual/Adopted/Amended * % of Change, Actual * Five Year Trend, Amended * Five Year Trend, Adopted * Five Year Trend, Greater of Actual/Adopted/Amended * Five Year Trend, Position Budgeting and Initialize with Zero Balance.

6. The Current Budget Year displays the year for which the budget is being created. This value is required; years greater than or equal to 2001 are accepted.
7. Select the Exclude Prior Year Activity check box to indicate that the system should disregard transactions flagged as prior-year fiscal activity when initializing the budget and on reports that display historical data. This check box is cleared by default.
8. Select the Include Encumbrances in Actual Balances check box to include encumbrance balances in the budget.
9. To apply biennial budgeting as a default setting for your organization, select the Biennial Budgeting check box. Back in the Current Budget Year field, type the year for which the budget is being created. Select either the Year 1 or Year 2 check box to indicate to which year the current budget year should be applied.

Forecasting Defaults

This section allows you to choose the number of years to forecast and the initialization method to use for long-range forecasting.

1. To apply long-range budget forecasting as a default setting for your organization, in Number of Forecast Years enter the number of years that your organization will forecast for the budget. This number represents the additional columns of budget year data in addition to your current annual budget year.
2. In Forecast Initialization Method, select a forecast initialization method to determine the basis for initializing the forecasted budget.
   Show methods:

   • Roll Last Year’s Forecast Forward – copies the last year forward into the next new year.
   • Initialize With Zero Based – initializes the forecast years with zeros.
   • Five Year Trend – uses the prior 5 years to calculate a trend.

After you enter all of the appropriate options, click Save to store these settings. 

Click Reset at any time to return to the previous state the page was in when the page was last saved.

To print the system settings, click Print. On the Company FM Settings Listing dialog box, click OK to submit the listing to myReports.

See Also

Annual Budget Levels

Company FM Settings

Annual Budgeting