Budget Adjustment Module Inflation Factor Calculator Report


Overview

This article serves as a step-by-step guide on how to use the BAM Inflation Factor Calculator Report in Oracle Planning and Budgeting Cloud Service (EPBCS).

Prerequisites

Access to Oracle Enterprise Planning and Budgeting Cloud Service (EPBCS) is required to run the BAM Inflation Factor Calculator Report. If EPBCS access is needed, please reference, KB0035018: How to Request Access to Oracle Enterprise Planning and Budgeting Cloud Service (EPBCS) for instructions.

Essential Information

BAM refers to Oracle Planning and Budgeting Task List 3, the Budget Adjustment Module, which is a transactional budget module for entering and processing recurring resource budget adjustments. This module enables continuous adjustments to the open budget year plan, supporting year-round management of the Core Recurring resource budgets.

Because BAM entries can be made on accounts that are eligible for compensation inflation, it is possible to inadvertently cause negative resource budgets by transferring compensation inflation incorrectly. This report was created to help prevent the creation of new negative resource budgets by displaying the relevant compensation inflation amount to back out from BAM entries on compensation accounts. This should clarify what the full impact of a BAM entry against compensation inflation eligible accounts will be to a chartstring once the automated inflation calculation runs following BAM entry.

Please note that this report is an optional tool. CBO does not require that departments balance resources versus expenses at the account level in EPBCS, so this practice is an option rather than a requirement. However, if you want to perfectly balance resource and expense budgets by account grouping, this report will support detailed balancing of core recurring resources and expenses within the following buckets:

Definitions

Budget Adjustment Source: Refers to the chart string elements from which the budget adjustment originates. Typically, the source chart string would transfer resource budget out to another unit (the destination).

Budget Adjustment Destination: Refers to the chart elements that receive the budget adjustments. Typically the destination chart elements will have additional budget resources added to their budget.

Adjustment Account: A select few resource accounts are relevant for the core recurring budget in EPBCS. The Account Codes available for the transfer of resources are:

Compensation Inflation: Also known as Compensation Adjustments, this includes adjustments to staff and faculty salaries and benefits. These are applied as weighted average increases for both salary and benefits resources budgets and calculated for each relevant Financial Unit by the Campus Budget Office (CBO).

Before you make any budget adjustments, you will need to identify where your available resources are for a transfer. To do this, first open Task 4.1 to locate available Resource Budgets and make note of the relevant Financial Unit, Fund, Function and Account Code. If no resources exist to transfer, then the transfer should not continue as it would result in a deficit budget.

Steps to Take

Running the Report

1. Navigate to the homepage of the Oracle Planning and Budgeting, and select the Financial Reports tile

Financial Reports Tile

2. Expand the caret next to the UCSD folder

UCSD Reports Folder

3. Expand the caret next to UCSD Reports folder, select the BAM Inflation Factor Calculator and then click on the XLS Icon

BAM Inflation Factor Calculator

4. A prompt window will display. Press Continue

Prompt Window

5. A dialog box will display in which the Financial Unit can be selected.

Dialog Box

6. Click Go to run the report. An Excel document will be saved to your Downloads folder.

Interpreting the Report

The report populates a row for each individual Financial Unit-Fund-Function-Project combination that has any core recurring budget resources or expenses. 

Starting with Column E, the report lists Compensation Inflation %, Resource and Expense amounts for:

For each category, you can quickly reference the column titled “BAM Suggested Entry” for that F-F-F-P combination to identify the number with the compensation inflation backed out. 

The math for the three columns within each compensation-inflation eligible account grouping works as follows: 

BAM Suggested Entry Math

Essentially, within column H in example above, the net difference between resources and expenses within the account grouping is divided by 1 + the relevant compensation inflation calculator to propose a balancing BAM entry with inflation removed. 

Column I represents the automatic compensation inflation that will be applied on top of the BAM entry as an impact to inflation-eligible resource budgets.

Column J represents the full impact to the Change in Net Position specific to this account grouping on Task 4.2 Review and Realign Core Recurring Budget.

Impact of Budget Adjustments in EPBCS

Budget adjustments made in the Budget Adjustment Module are reflected in the resource section of Task 4.2. Here is an example of how to follow the impact of a set of budget adjustments in EPBCS, starting with a view of Task 4.2 before the balancing adjustments are made.

Task 4.2 Before Adjustments

Highlighted in the bottom row and last column of the form you see a Change in Net Position of $845,146.

To balance resources and expenses, we make a number of budget adjustments on the relevant Accounts on Task 3.2 as shown below:

Task 3.2 Adjustments

After about 1 minute, both the Budget Adjustment Module entries and relevant compensation inflation will have posted to Task 4.2 and cleared out the change in net position variance:

Task 4.2 After Balancing

Additional Guidance

KB0035619: Understanding the Compensation Inflation Model

KB0035506: How to Claim a Budget Adjustment ID in Task 3.1

KB0035511: How to Enter Budget Adjustment Details in Task 3.2

KB0035512: How to Review Budget Adjustment Entries in EPBCS

Questions?

If you need any additional assistance, please Submit a Ticket