Position Budget Area

A position budget area is the pot headcount is counted against: Factory Operations, Quality, Head Office. You name the pot here and list the legal entities it covers. Position Planning then budgets jobs into it, and a recruitment requisition says which pot the vacancy is drawn from.

Where

People Directory › Setup › Position Budget Area

Who uses it

The implementation consultant with the budget owner, once at setup

When

Before Position Planning and before the first Recruitment Requisition

Needs first

Legal Entity

Shape

One record per pot, with a line per legal entity it covers

What it is for

Headcount is approved in pots, not job by job. A board approves 180 heads for Factory Operations and 24 for Head Office, and HR then decides inside each pot what to hire. This screen names the pots.

It is a separate list from department and from legal entity because a budget pot rarely matches either exactly. One pot often spans three departments. Occasionally it spans two legal entities, which is why the screen has lines at all: a pot lists the entities it is valid in.

On its own a budget area holds no numbers. The numbers go on Position Planning, which funds a named job at a named grade inside an area, and on Budget Area Period, which records the approved total for a window of dates.

Every field, in plain words

Header

Field	What it means	What to put in it	Notes
Position Budget Area	The short code for the pot.	FACTOPS	Required. Must be unique.
Name	The pot written out.	Factory Operations	Required. Appears in lookups on planning and on requisitions. Translations are kept per language.
Block	Retires a pot.	Leave clear.	Ticking it stops the area being offered on new records.

Lines - which entities this area covers

Field	What it means	What to put in it	Notes
Line #	The line number.	Fills itself. Leave it.
Legal Entity	A company the pot is valid in.	KHI-MFG - Korangi Manufacturing	Required. Pick it from the list. One line per entity. A pot used by the whole group gets a line for every entity.

A line carries nothing but the entity. There is no amount and no date on a line, those live on Budget Area Period and Position Planning.

How to configure it

1. Create your Legal Entities first.
2. Ask how headcount is approved at this client. The names used in that approval are your areas, usually three to eight of them.
3. Create each area, for example FACTOPS / Factory Operations, QA / Quality Assurance, HO / Head Office.
4. Add a line per legal entity the area is valid in.
5. Save, then record the approved totals on Budget Area Period and the job level detail on Position Planning.

Scenarios

Our budget is approved by department, not by area

Create one budget area per department and give each the same name. It is not duplication. One list is the chart of units, the other is the way money is approved, and they are allowed to look alike. The day a department is split and the budget is not, you will be glad they were separate.

The same pot funds heads in two companies

Give the area two lines, one per legal entity. The pot is then selectable in both.

What it is connected to

• Needs Legal Entity to exist first.
• Position Planning funds a job and grade inside a budget area.
• Employee Organization Assignment records the budget area an employee is counted against, and Employee Basic Information shows it.
• Recruitment Requisition names the budget area the vacancy is drawn from, which is where recruitment and the headcount budget meet.
• Budget Area Period is a separate screen, not a child of this one. It carries its own code and dates.

If something looks wrong

• "The budget area list is empty on a requisition" - no areas exist, or the ones that exist have no line for that requisition's legal entity.
• "It will not save, it says the area already exists" - the code is in use. Area codes must be unique.