One of the requirements during a recent Performance Architects Oracle Planning and Budgeting Cloud Service (PBCS) implementation project was to create a solution for their projection process. During discussions with the Budget Office, we learned that requirements included:
Projections occur three times a year:
After Q1 actuals are complete
After Q2 actuals are complete
After Q3 actuals are complete
Historical actuals and budget data must be used to seed the projection scenario
Revenues need to be seeded using one methodology, while expenses are seeded using another methodology
After the projection scenario is seeded, additional adjustments may need to be made by department, fund, program, etc.
The calculation to seed the “Projection” scenario contains several components:
Q1 revenue and expense actuals were copied to “Q1 Projection”:
Using prior year actuals, “% of YearTotal” was calculated for all revenue accounts for each month. See the example below for October (500 / 9,750 = 5.1%):
The monthly “% of YearTotal” is then multiplied by the “Budget YearTotal” value to calculate each month’s revenue. See the example below for October (5.1% x 8,100 = 415):
Expense accounts are calculated by taking the average of “Q1 Actuals” and loading that value into all of the out months:
After the business rule is launched, the results are displayed:
After the “Q1 Projection” is calculated, the Budget Office wanted the option to make additional adjustments. This was accomplished by leveraging the hierarchy in the “Version” dimension. We created a sibling of “Projection Calculated” and named the member “Projection Adjustments.” The parent of those two members is “Projection Total”.
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