Human Resource Budgets

In Oracle HRMS, we can define non-monetary budgets, such as headcount or full-time equivalents (FTEs) that are based on organization’s work structures. Budgets can be defined against an organization, job, grade, position, or any combination of these. You can monitor the budgets by comparing the budget values with actual values derived from employee assignments.

For example, you might define a headcount budget of two for the position Marketing Manager. The variance of the actual value from the budget value depends on the number of employees assigned to that position at any time. A negative variance indicates a vacancy.

Pre-requisites

• Define values for the QuickCode Type BUDGET_MEASUREMENT_TYPE in the QuickCodes window.

• Review the period types defined on the system. You can rename them to match the names you use in your enterprise. Budgetary calendars and payroll calendars are based on a period, such as a Quarter or a Year. Standard period types are seeded with the system. If you want to use a different name for a period type, enter the name in the Period Types window. You cannot remove the names that are already defined, but you can insert a new record and select the appropriate Number Per Year.

• Define calendars to determine the start date and period type of your budgets. You can define calendars for human resource budgets in the Budgetary Calendar window.

Define your budgets (read below)

• Enter the name of the budget, and select a measurement type and calendar. Save the budget.

• Enter a version number and start date for this budget version. Save the new version.

• Select the components for which you want to produce budget element information, and save your work. You can enter any combination of organization, job, position, and grade. You must select a value for at least one of the fields.

• In the Budget Values block, select a specific time period from your calendar. Enter a numeric budget value for your selected budget element for that period. The system automatically gets the actual values and calculates the Variance as an absolute value and a percentage value.

• Select other time periods for this budget element, as you require, and enter your budget values. Save your values.

• Repeat steps 3 and 4 as necessary for other budget elements. Save your work

Entering Actual Values Against Budgets 

You can monitor HR budgets by comparing the budget values with actual values derived from employee assignments. In the calculation of actual values, an assignment does not always count as one. For e.g. if an assignment is part-time, it should count as less than one for a Full Time Equivalent type of budget. At the Business Group level, you can enter the default value of an assignment for each budget type. Then you can override the default for particular assignments in the Assignment Budget Values window.

Note: If you do not enter a default value at the Business Group level, you must be careful to enter a value for every assignment. If there is no value entered in the Assignment Budget Values window, that assignment is not counted when calculating actual values for the budget.

Viewing and Reporting Budget Variances

Variance for any budgets can be viewed through the Budget window from main menu. If you are using positions, you can view the variance between your budget and the actual values for positions using two other windows:

• List Position Budget Variance

• List Budget Variance by Organization.

You can also report on variances using the Staffing Budget Details report