Budget calculation example
Assume the resources in these tables are all eligible for BUDGET A and therefore, are used in the budget calculations.
Assume a MONTHLY calculation method that includes these components:
| Component | Multiplier |
|---|---|
| Work Assignment Pay Rate | 13 |
| Other Pay Rate (annual bonus) | 1 |
BUDGET A uses the MONTHLY calculation method and uses a 2% calculation percentage.
Total budget calculations
This table shows the budget amounts derived from each resource's salary and the total budget amount.
| Manager | Direct reports | Monthly salary | Annual bonus | Calculated salary base (Monthly*13 + bonus * 1) | Budget amount (2% of salary base) | |
|---|---|---|---|---|---|---|
| DIRECTOR A | 20,000.00 | 2,000.00 | 262,000.00 | 5,240.00 | ||
| Resource A | 10,000.00 | 500.00 | 130,500.00 | 2,610.00 | ||
| Resource B | 10,000.00 | 500.00 | 130,500.00 | 2,610.00 | ||
|
MANAGER A |
15,000.00 | 1,000.00 | 196,000.00 | 3,920.00 | ||
| Resource C | 10,000.00 | 500.00 | 130,500.00 | 2,610.00 | ||
| Resource D | 10,000.00 | 500.00 | 130,500.00 | 2,610.00 | ||
|
MANAGER B |
15,000.00 | 1,000.00 | 196,000.00 | 3,920.00 | ||
| Resource E | 10,000.00 | 500.00 | 130,500.00 | 2,610.00 | ||
| Resource F | 10,000.00 | 500.00 | 130,500.00 | 2,610.00 | ||
| Total budget | 28,740.00 | |||||
Managers's distributed budget amounts
In this example, the CEO is not eligible for the budget. As the direct manager for DIRECTOR A, the CEO owns the distributed budget derived from DIRECTOR A's salary. If the CEO was eligible for budget, the CEO budget would include his or her own budget in addition to the budget for DIRECTOR A.
| Budget owner | Subordinates | Calculated amount per resource | Manager's budget |
|---|---|---|---|
| CEO (owns budgets derived from direct report DIRECTOR A) | |||
| DIRECTOR A | 5,240.00 | 5,240.00 | |
| DIRECTOR A (owns budgets derived from direct reports Resources A and B and Managers A and B) | |||
|
Resource A Resource B MANAGER A MANAGER B |
2,610.00 2,610.00 3,920.00 3,920.00 |
13,060.00 | |
| MANAGER A (owns budgets derived from direct reports Resource C and D) | |||
|
Resource C Resource D |
2,610.00 2,610.00 |
5,220.00 | |
| MANAGER B (owns budgets derived from direct reports Resource E and F) | |||
|
Resource E Resource F |
2,610.00 2,610.00 |
5,220.00 | |
| Totals | 28,740.00 | 28,740.00 | |