Budgets

Budgets provide a way to plan for costs, make forecasts, and evaluate actual expenses versus planned expenses. Budgets take into consideration a wide range of items in your infrastructure, including assets, labor, and the configuration items in the CMDB.

How to use budgets

To use the Budgets feature, perform these steps:
  1. Identify budget owners, who have visibility to the financial data associated with the budgets.
  2. Set up a budget model, which specifies the segment hierarchy that account codes use.
  3. Set up your currency conversion rates if you have budget items in more than one currency.
  4. Manually or automatically generate budget keys, which tie all budgeting items together. Budget keys are especially important for the budget forecast.
  5. Set up budget plans, which specify estimated expense summaries for items like assets, contracts, labor, and a target expense amount. Make a plan for a specific fiscal period and associate a budget key and account numbers with the plan.
  6. When your budget plan is complete, promote it to a budget forecast. Budget forecasts provide an estimate of estimated expenses versus target amounts for each unique fiscal period + budget key combination.
  7. Populate the Budget [itfm_budget] table with your finalized budget amounts based on your forecast.
  8. View the Budget Variance report to see how expenses compare to budgets for cost centers, departments, and accounts.

You can create and manage budgets through standard lists and forms. You can also use the Budget Overview interface to view details about multiple budget plans and perform basic actions, such as copying and deleting plans.

Integration with Project Portfolio Suite

Starting with the Helsinki release, portfolio managers can create a budget for a specific portfolio in the Project Management application. The budget includes values for capital expenses (Capex) and operating expenses (Opex) for a given fiscal period.

The Financial Management application automatically creates a budget plan and a budget key using the Project Financials Budget Model, which is available by default in the Helsinki release when you activate Financial Planning for PMOs. It also creates budget items

Portfolio managers have access to only the budget plans, budget items, and forecasts that for the budget keys they own. When a portfolio manager creates a budget from the Project Manager application, the manager automatically becomes the owner of the key for the budget plan.