Income and Expense Budget System {FRM-29}


1.1.  General


This is the User Manual for the ITS Income and Expense Budget System. It is one of a series of user- and technical manuals which is available for the ITS systems.


The contents of this manual are:

Chapter 1 Introduction
Chapter 2 Income and Expense Budgeting Module
Chapter 3
 Finance iEnabler Budgeting

The reader is referred to Section 2.1.1 for an overview of this system.

It is assumed that the reader is already familiar with the general operation of the menus and the keyboard. These matters are fully discussed in User Manual OPS, "Operational Aspects of ITS Systems".

The reader is reminded that the copyright of the ITS systems and documentation remains with ITS, and that users thereof are contractually prohibited from providing information thereon to third parties, such as other educational institutions.


2.  Income And Expense Budgeting Module {MEB}

2.1.  Introduction

2.1.1.Overview Of Income And Expense Budgeting Module

The Income and Expense Budgeting Module is intended for use by institutions who wish to offer the budgeting departments / sections a historical trend of income and expenditure, which could help them in defining their future requirements. Also, by those Budget Control Officers who wish to do preparatory calculations of possible forecasts. The results then used in the evaluation of the requests. (Users, who elect to collect and evaluate budget requests manually, and after approval to update the GL with the approved amounts by means of standard journals, will not use this module).

The module has been designed with three primary aims in mind, namely:
Budget Control is a standard function of the Financial System, and this module merely assists in the process of compiling a budget and posting the calculated figures into the General Ledger. The "Year-End" process in the General Ledger completes the budget cycle by transferring unexpended budget amounts to the reserve or to the next financial year.

This module would be used in the following logical sequence:
  1. Maintain the control parameters for the budget cycle - menu option {MEBM-1} .
  2. Maintain budget motivation indicators - menu option {MEBM-3}
  3. Maintain budget control accounts - menu option {FCSC-22}
  4. Maintain Finance Permission - function FGLB - menu option {FCSP}
  5. Maintain historic figures in the first year of use - option {MEBO-21} .
  6. Start new budget cycle - option {MEBM-2} .
  7. Print and send Budget Forms to budgeting departments, using the report in option {MEBOR1-1} or {MEBOR1-2}. Departments/sections will complete, and if required, Deans / Directors / Heads of Department will do recommendations and return the forms to the Budgeting Department, if operating on a centralised basis.
  8. If centralised, on receipt of the forms, the requested amounts will be updated by using option {MEBO-3} , reports {MEBOR1-1 and 26} again being used to see the result. If de-centralised, departments can capture their own requests on menu option {MEBO-3} and pr nt their own reports as specified above.
  9. Whilst the actions in the above options are in process, the user will do his/her own projected budget calculations via option {MEBO-1}.
  10. Using the report in option {MEBOR1-3} one can print the results of one's own calculations. These last two options can be executed repeatedly.
  11. As soon as the user is satisfied with the projections, a calculated figure or a mix thereof can be copied to the "forecast budget". This can be done on a single basis in option {MEBO-1} or on global basis through option {MEBO-2}.
  12. The results of the "forecast budget" and the "requested" amounts, updated through option {MEBO-3} , can be printed by using the report in option {MEBOR1-6}, which can serve as a preparatory report for the Budget Committee.
  13. At this stage the figures of interest are the own "forecast" and the "requested" figures as per the above report. These figures are also available in option {MEBO-4}, "Maintain Approved Budget". In this option the user will now finally update the "approved" amount, either by copying the "forecast budget" or "requested" figures, or by entering an amount. This process can also be executed in batch by using {MEBO-5}, "Copy Budget to Approved Budget".
  14. The "approved budget" can be printed by using the report in option {MEBOR1-23} , which can serve as notification to Departments of their budgets for the next year. These figures are also available on report {MEBOR1-1}, "Budget Form".
  15. The approved budget is now finalised in this module and the user can copy all figures to the General Ledger by option {MEBO-6} , "Copy Approved budget to GL".
  16. There are also other reports, which could be of use in the evaluation phase.
IMPORTANT NOTE:

The tight restriction on the validity of existing GLA's is somewhat more lenient in this module. The system controls the existence of the cost centre and the account separately, but not the existence of a GLA, thus allowing the user to "create" a GLA in this module in options {MEBO-3/4}, and to process transactions.

Report {MEBOR1-7} will display all "invalid" GLA's with transactions against it. The user should first create these GLA's under option {FCSO-6} before approved budgets are maintained in option {MEBO-4}. The restriction on the last mentioned option ensures that no transactions are posted to "invalid" GLA's through option {MEBO-6}.

2.1.2.  Linking With Other ITS Systems
 
The integration of the ITS systems results in the interdependence of systems. The extent to which this applies to the Income and Expense Budget Module is discussed in this section.

The set-up and access control rules, definitions of Cost Centres, Accounts, GL-Allocations and Transaction Types are specified in the Code Structure Subsystem, and such rules and definitions are used by all other Financial Subsystems, including this one.

Before executing option {MEBO-6}, "Copy Budget to GL", the user must link a transaction type to event "FJ" - "Copy Budget to GL".

The system will post a credit entry for expenditures and a debit entry for incomes to the GLA on which the budget was calculated, and the debit entry for expenditures and credit entry for incomes to the Budget Control GLA specified in option {FCSC-22}. If no GLA is specified, the system will use the Budget Control GLA specified on the Transaction Type.

During the Year-end process, the system once again requires a transaction type to do the reversals of budgets.

The income and expenses displayed in reports in this module are directly retrieved from the General Ledger, and after finalisation of the budget, the budget amounts are once again posted directly into the Ledger.



3. Finance iEnabler Budgeting {B00001}


3.1  Introduction
3.1.Overview
The iEnabler Expense Budgeting Module is available to clients as part of the Finance  iEnabler. The purpose of the module is to provides a web based interface to departments and faculty for capturing budgets which can be controlled by the budgeting departments / sections.

3.2 This module would be used in the following logical sequence:

  1. Start a new Budget Parameter Set {MEBM-2}. 
  2. Maintain the System Control Parameters {MEBM-1} for the Budget Parameter Set.
  3. Maintain Budget Motivation Indicators / Load  Items in Web Budget  {MEBM-3} 
  4. Maintain Budget Control Accounts {FCSC-22} 
  5. Ensure that each personnel member that would use the Web Budget Module has a record in the User Access Definitions {USERS-5}
  6. Maintain Finance Permission - function FGLB - menu option {FCSP}
  7. Enter the Budget Parameter Set Code in the System Operational Parameter "BP" - Expense Budget Parameter Set for the Web.
  8. Notify the relevant personnel members that the system is available for the update of Budget Requests and of the cut-off date for the entry of Requests. The "Requested Budget Due Date" for the Parameter Set may be Maintained System Parameters {MEBM-1}
  9. Once Budget Requests has been entered, and the Budget Officer is satisfied with the figures, the values may be Copied to the Approved Budget {MEBO-5}
  10. Approved Budget Figures may be Copied to the General Ledger {MEBO-6} from where the Financial System will do Budget Control.



History of Changes

Date System Version By Whom Job Description
15-May-2007 v01.0.0.0 Charlene van der Schyff t137175 New manual format.
18-Dec-2012
 v02.0.0.0
 Marchand Hildebrand
 t183060
 Add finance permissions