Budget Hierarchy and Entity Setup Examples

The following examples are provided for a better understanding of budget entity and hierarchy setup.

In Practice

In this example, a credit union has two segments in their general ledger; Branch and Account. However, the credit union would like to budget by department, product line, and occasionally report by product type. So, Branch, Account, Department, and Product Line dimensions are created in Planful. Budget entities are created for Branch, Department, and Product Line. For example, budget entity 1000 is a combination of the Wichita KS North branch, the Personal Banking department, and the Checking project line. Templates are set up for this budget entity so that users can perform budgeting tasks in the Planning Control Panel.

For detailed information on budget entities; what they are, how they are used, and a use case, see Everything You Need to Know About Budget Entities.

In Practice

In this example, a pharmaceuticals company has 5 dimensions in its source general ledger. However, the company would like to budget by region. The company would also like to use Consolidation to handle intercompany transactions. Seven Planful dimensions are created. The InterCo dimension is for intercompany transactions. Budget entities are setup using a combination of dimension members. So, budget entity NE_P_SPEC represents the Northeast region Pharmaceuticals business unit and the Specialty Medicine product.