Budget plans

Budget plans specify expenses for assets, contracts, labor, and certain configuration items (CIs) for a fiscal period, particularly one in the future. Use budget plans as the basis to compare your actual versus planned expenses.

Budget plans are associated with a budget key and a fiscal period. If you have financial data over several financial periods, make a separate plan for each period.

There are several types of items you can add to the budget plan. The costs of these items are broken down over the fiscal period that you specify for the plan. See Budget items and Budget item breakdowns for more information.

Budget plan expense amount types

Budget plans show these types of expense amounts:
  • Target amounts: An amount that you set as a goal to reach or a limit not to exceed. A target amount is created for a specific fiscal period and account code combination. When you select the account code and fiscal period for the budget plan, the target amount is automatically populated in the read-only target fields. There are targets for both operating and capital expenses.
  • Budgeted amounts: A rollup of all the budget plan items, which appear as related lists on the Budget Plan form. Only items marked as capital expenses do not roll up to the amount fields. There are budgeted amounts for both operating and capital expenses.

Budget plan ownership

Budget plans have a single owner, who must have the budget_owner role. Whoever you chose as the budget owner must also be associated with the budget plan's budget key as an owner.

Budget plan parent-child relationships

Budget plans can have one or more sub-plans, which roll up their actual budget amounts to the parent budget plan. You cannot promote child plans individually. Only the top-level plan in a hierarchy can be promoted.

The same account codes can be used for parent and any or all child plans, if necessary. Child plans can also have account codes that are lower in the hierarchy. For example, if the parent's account code is IT finance, the child plan's account code could be IT finance > Auditing Service, or similar. If you have multiple sub-plans with the same account codes, the amounts roll up from all subplans to the forecast.

Changing the fiscal period parent plan cascades the change down to all sub-plans. See Budget owners and budget key owners for more information.

Budget plan promotion

You can promote a budget plan to a budget forecast, based on the plan's account code and fiscal period. The forecast helps you predict the expenses your organization will incur. See Budget forecasts for more information.