Projection Process Case Study for Oracle Planning and Budgeting Cloud Service (PBCS)

August 9, 2017

Author: Mike McLean, Performance Architects

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:

  1. Q1 revenue and expense actuals were copied to “Q1 Projection”:
  1. 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%):
  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):
  1. Expense accounts are calculated by taking the average of “Q1 Actuals” and loading that value into all of the out months:
  2. 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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