Use of budget calculation methods

Note: Not applicable if you are using Infor Learning Management.

You can assign budget calculation methods to budget categories and to budgets. If you assign budget category methods to a budget category, the budgets that use this budget category will inherit the budget calculation methods from the budget category. They will also inherit a budget calculation percentage if it is specified on the budget category. Both the calculation methods and the percentage can be changed on the budget.

You should assign a budget calculation method for each of the pay rate types that your organization uses in calculating the budget amounts.

When you calculate a budget, the system calculates the initial budget in this way:

  • The system identifies each resource whose compensation should be included in the total compensation calculations

    • Each resource's pay rate currency must match the budget currency.

    • Each resource must belong to both the legal entity specified for the development period (if applicable) and the eligibility group specified for the budget (if applicable). If neither a legal entity nor an eligibility group is specified, all resources belonging to the organization with an active primary work assignment and a pay rate currency that matches the budget currency will be part of the calculation. If the organization has more than one pay rate currency, an error message will disclose resources not included in the calculations.

  • The system applies the appropriate calculation method to each resource by multiplying each component's amount by the component multiplier and adding the result of all components in the calculation method.

    Note: The budget should include only the calculation methods that are required. If you only have one pay rate type (for example, monthly salary), you should only have a monthly calculation method.

  • The system totals these components for all resources and applies the budget calculation percentage to the total to get a total budget amount.

  • Following the organization's manager structure, the system applies the same formula to each resource manager's direct reports to obtain a budget breakdown by budget owner (manager).

    Note: The calculation allocates each resource's portion of the budget to the resource's direct manager for the resource's primary assignment. The manager's own portion of the budget is owned by their direct manager, and so on. The only exception is for the top manager position in the organization's manager structure (for example, the CEO). The top manager owns their own learning budget in addition to the learning budget of their direct reports.
Note: The budget calculations provide an initial total budget and budget breakdown by resource manager. The learning manager can make changes to both the total budget amount and each resource manager's budget amount.