Presentation: Enhanced Budget Management Process #

1. Problem Statement #

• The current budget versions are not tracked and can be modified without control.
• The business requires a mechanism to manage the actual costs also against the latest forecast version.
• The original budget must always be retained, with an additional versions to track changes.
• While the current EPC budget management is functioning, adding this feature will align it better with Energix’s budget management standards.

2. Proposed Solution #

2.1 Forecast Functionality Gap Analysis #

• Energix defines "Forecast" as a strict, controlled revised budget.
• Oracle Fusion’s Forecast entity is only advisory and does not enforce strict control.

2.2 New Budget Control Model #

• Each project will have an Original Baseline Budget (Energix’s "budget").
• The system automatically creates the next version: Current Working Budget, which is a copy of the Current Baseline (or Original Baseline if never updated).
• Once a new baseline is set, budgetary controls are applied based on the Current Baseline.
• The Original Baseline remains available in reports for comparison and validation.

3. Compensational Audit Measures #

• Workflow for Budget Baseline Approval
  • Approval processes can be defined for budget changes.
• CFO Authority for Original Baseline Definition
  • Only the CFO can designate a budget version as the Original Baseline.
• Audit Trail Implementation
  • The system automatically records all changes for auditing purposes.

4. Expected Benefits #

• Enhanced budget tracking and control.
• Improved alignment with Energix’s financial policies.
• Increased accountability through audit trails and approval workflows.
• Streamlined financial reporting and validation.

5. Next Steps #

• Finalize the proposed model with stakeholders.
• Define system configurations in Oracle Fusion.
• Implement approval workflows and audit mechanisms.
• Conduct user training and roll out the new process.