Satori Budgeting, Forecasting, and Financial Reporting Online Help

Publication Date:  March 3, 2011

Budget Parameters

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There are four sections available under Budget ParametersGeneral Parameters, Revenue Parameters, Compensation Parameters, and Asset Parameters. Select Budget Parameters to display these sections.

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Figure 1.    Budget Parameters

General Parameters

This section has two reports: Application Parameters and Exchange Rates, which are shown here as blue hyperlinks — click to open.

Application Parameters

This report controls the business rules for the budgeting application. Many values are entered at implementation while others may be set at a later time.

From the General Parameters menu, click Application Parameters to display Application Parameters.

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Figure 2.    Application Parameters

The parameters are:

Located at the top left-hand side of the screen are three menu items:

Exchange Rates

From the General Parameters menu, click Exchange Rates to open Exchange Rates. For a multi-currency budget, enter the budgeted exchange rates by currency by month on this screen.

Figure 3.    Exchange Rates

  1. From the Current Version drop-down, select the Current Version to display.

  2. From the Current Year drop-down,  select the Current Year to display.

  3. From the Conversion Type drop-down, to select the Conversion Type to display.

Located at the top left-hand side of the screen are two menu items:

Revenue Parameters section

The Revenue Parameters section has four input screens: By Title, By Title and Office, By Title Office and Practice Group, and Working Calendar by Office.

If parameters are entered into the By Title input screen, those numbers are automatically entered into the By Title and Office and By Title Office and Practice Group input screens. If you try to overwrite the info on these screens you get an error that states “You can’t write a value into this cell because it contains the result of a proCube formula.” However, if the values are entered into the By Title and Office screen, those values populate the By Title Office and Practice Group screen.

By Title

Use this input screen to enter Revenue Parameters by Titles on a firmwide basis. From the Revenue Parameters section select By Title to open the Revenue Parameters by Title input screen.

Figure 4.    Revenue Parameters by Title

If you enter a value for % Increase in Rate, you must also enter values for Effective Month and Billing Rate.

Budget Year and Current Version display on the left-hand side and are pulled from the information entered on the Configuration screen.

Values entered on this screen overwrite values previously entered on both the Revenue Parameters by Title and Office and Revenue Parameters by Title Office and Practice Group input screens. If a value is entered into the Applicable to All Titles field (located at the bottom of the column), this value is automatically applied across the board for All Titles.

Located on the bottom left-hand side of the screen are two menu items. 

This input screen uses an OLAPPivot and accesses and modifies the Revenue Parameters by Title cube. The dimensions used from the Revenue Parameters by Title cube are: Version, Year, Revenue Parameters Measures and Title. Listed in the Columns is the Revenue Parameters Measures, listed in the Rows is Title, and the remaining dimensions are listed in the Page.

By Title and Office

This input screen enables you to enter specified Revenue Parameters by Titles by Office. From the Revenue Parameters menu select By Title and Office to open the Revenue Parameters by Title and Office input screen.

Figure 5.    Revenue Parameters by Title and Office

This screen has a Revenue drop-down that enables you to select the following values: % Increase in Rate, Effective Month, Annual Billable Hours, Local Default Billing Rate, Base Default Billing Rate, % Billing in Local Currency, and Utilization Rate by Title to individual Offices. Budget Year and Current Version display on the left-hand side and are pulled from the information entered on the Configuration screen.

Values entered on this screen overwrite values previously entered on Revenue Parameters by Title Office and Practice Group input screens. If a value is entered in the Applicable to All Titles field (located at the bottom of the column), this value is automatically entered across the board for All Titles for all Offices.

Located at the top left-hand side of the screen are two menu items:

This input screen uses an OLAPPivot and accesses and modifies the Revenue Parameters by Title Office cube. The dimensions used from the Revenue Parameters by Title Office cube are: Version, Year, Office, Revenue Parameters Measures, and Title. Listed in the Columns is the Office, listed in the Rows is Title, and the remaining dimensions are listed in the Page.

By Title Office and Practice Group

This input screen enables you to enter by Practice Group the specified Budget Parameters by Titles by Office. This is the lowest level at which Budget Parameters can be entered. Any parameters entered on either the By Title or the By Title and Office screens overwrite all values entered here.

From the Revenue Parameters menu select By Title Office and Practice Group. The Revenue Parameters by Title Office and Practice Group input screen displays.

Figure 6.    Revenue Parameters by Title Office and Practice Group

This screen has a Revenue drop-down that enables you to select one of the following values: % Increase in Rate, Effective Month, Annual Billable Hours, Local Default Billing Rate, Base Default Billing Rate, % Billing in Local Currency, or Utilization Rate by Title to individual Offices. Budget Year and Current Version display on the left-hand side and are pulled from the information entered on the Configuration screen.

If a value is entered into the Applicable to All Titles field (located at the bottom of the column), this value is automatically entered across the board for All Titles for every Office for the Practice Group specified. However, it will not overwrite a previously entered value.

Located at the top left-hand side of the screen are two menu items:

This input screen uses an OLAPPivot and accesses and modifies the Budget Parameters by Title Office PG Dept cube. The dimensions used from the Revenue Parameters by Title Office PG Dept cube are: Version, Year, PG Dept, Revenue Parameters Measures, Office, and Title. Listed in the Columns is the Office, listed in the Rows is Title, and the remaining dimensions are listed in the Page.

Working Calendar by Office

The Working Calendar by Office screen parameters control how hours are allocated across months for the budget year.

  1. From the Revenue Parameters section click Working Calendar by Office to open the Adjusted Working Days screen.

Figure 7.    Adjusted Working Days

  1. From the Office drop-down to select the office to be displayed.

  2. To view detailed information about adjusted working days by office, click View by Office to open the Adjusted Working Days by Office screen. 

Figure 8.    Adjusted Working Days by Office

Select working measures to view from the Workday Measures drop-down  menu:

Located at the top left-hand side of the screen are two menu items:

Compensation Parameters section

The Compensation Parameters section consists of four input screens: By Title, By Title and Office, By Title, Office and Practice Group, and Payroll Calendar.

Parameters entered on the Compensation Parameters By Title input screen are automatically entered on the Compensation Parameters by Title and Office and Compensation Parameters By Title, Office and Practice Group input screens. If you try to overwrite the info on these screens you will get an error that states “You can’t write a value into this cell because it contains the result of a proCube formula.”  However, if the values are entered on the Compensation Parameters by Title and Office, these values populate the Compensation Parameters by Title, Office and Practice Group input screen. 

By Title

Here you enter Compensation Parameters by Titles firmwide. From the Compensation Parameters menu select By Title to open the Compensation Parameters by Title input screen.

Figure 9.    Compensation Parameters by Titles

Budget Year and Current Version display on the left-hand side and are pulled from the information entered on the Configuration screen. The Display Group drop-down menu, which displays on the left-hand side, lets you select the type of group for display: Salary, Bonus, Tax, Benefits, or UDF.

The Salary group includes the following parameters:

The Bonus group includes the following parameters:

The Tax group includes the following parameters and only applies to U.S.-based firms.  You can specify caps or maximum amounts for each.

The Benefits group includes the following parameters, which can be a percentage of a salary or a specified amount.

The UDF group includes five fields that can be used for any types of calculation.  They might be overseas taxes, or additional taxes such as parking, living subsistence, per diem allowances, etc.

Values entered on this screen overwrite values previously entered on the Compensation Parameters by Title and Office and the Compensation Parameters by Title, Office and Practice Group input screens. It also enters the Compensation values on the Budget Compensation input screen for all employees that did not have these fields populated from the back-end system. If a value is entered in the Applicable to All Titles field (located at the bottom of the column), this value is automatically entered across the board for All Titles.

Located at the top left-hand side of the screen are two menu items:

This input screen uses an OLAPPivot and accesses and modifies the Compensation Parameters by Title cube. The dimensions used from the Compensation Parameters by Title cube are: Version, Year, Compensation Parameters Measures and Title. Listed in the Columns is the Compensation Parameters Measures, listed in the Rows is Title, and the remaining dimensions are listed in the Page.

By Title and Office

This option enables the user to enter Compensation Parameters by Titles by specified Office. From the Compensation Parameters menu select By Title and Office to open the Compensation Parameters by Title and Office input screen.

Figure 10.           Compensation Parameters by Title and Office

This screen enables you to enter values for the following fields:Salary % Increase, Local Salary Increase Amount, Base Salary Increase Amount, Salary Increase Effective Month, and Overtime %.

This screen has an Office drop-down that enables you to enter Compensation Parameters by specified Office. Budget Year and Current Version display on the left-hand side and are pulled from the information entered on the Configuration screen. Values entered on this screen overwrite values previously entered on the Compensation Parameters by Title, Office and Practice Group input screen. Compensation values are automatically entered into the Budget Compensation input screen for all employees that did not have these fields populated from the back-end system.

If a value is entered in the Applicable to All Titles field (located at the bottom of the column), this same value is automatically entered for All Titles.

Located at the top left-hand side of the screen are two menu items:

This input screen uses an OLAPPivot and accesses and modifies the Compensation Parameters by Title Office cube. The dimensions used from the Compensation Parameters by Title Office cube are: Version, Year, Office, Compensation Parameters Measures, and Title. Listed in the Columns is the Compensation Parameters Measures dimension, listed in the Rows is the Title dimension, and the remaining dimensions are listed in the Page.

By Title, Office and Practice Group

This screen enables you to enter specified Compensation Parameters by Titles by specified Practice Group. This is the lowest level at which Compensation Parameters can be entered and they are overwritten if values are entered into the By Title or the By Title and Office compensation parameters screens.

From the Compensation Parameters menu select By Title Office and Practice Group to open the Compensation Parameters by Title Office and Practice Group input screen.

Figure 11.           Compensation Parameters by Title, Office and Practice Group

This screen enables you to enter specified compensation parameters by specified Practice Group by Title and Office. This screen has a Practice Group and Compensation drop-down that enables the user to select by Practice Group the Compensation parameter. Compensation values entered on this screen will be entered on the Budget Compensation input screen for all employees that did not have these fields populated from the back-end system.

Budget Year and Current Version display on the left-hand side and are pulled from the information entered on the Configuration screen. If a value is entered in the Applicable to All Titles field (located at the bottom of the column), this same value is automatically entered for All Titles.

Located at the top left-hand side of the screen are two menu items:

This input screen uses an OLAPPivot and accesses and modifies the Compensation Parameters by Title Office PG Dept cube. The dimensions used from the Compensation Parameters by Title Office PG Dept cube are: Version, Year, PG Dept, Compensation Parameters Measures, Office and Title. Listed in the Columns is the Office dimension, listed in the Rows is the Title dimension, and the remaining dimensions are listed in the Page.

Payroll Calendar

Here you enter the number of pay periods in each month by Title, which then calculates the total for the year. 

From the Compensation Parameters menu select Payroll Calendar to open the Payroll Calendar - Top Level screen.

Figure 12.           Payroll Calendar - Top Level

You can now enter the pay period for each month for every office. If all titles are on the same pay schedule, enter the pay periods in the Applicable to All Titles row. If you select Enter Details, you activate the Office and Department drop-down menus to specify pay periods based on the office and/or department.

Located at the top left –hand side of the screen are two menu items:

Asset Parameters section

The Asset Parameters section enables you to select the Depreciation Parameters (Depreciation Methods and Useful Life) for Capital Expenditures by specific Office or Firmwide. The Asset Parameters section contains two screens: Depreciation Parameters Firmwide and Depreciation Parameters by Office.

Depreciation Parameters Firmwide

This input screen enables you to enter Depreciation Parameters by Asset Class firmwide.

From the Asset Parameters menu select Depreciation Parameters Firmwide to open the Depreciation Parameters Firmwide screen.

Figure 13.           Depreciation Parameters Firmwide

Values entered on this screen overwrite values previously entered on the Depreciation Parameters by Office input screen. Asset Classes are standard and cannot be changed. The other two fields Depreciation Methods and Useful Life (In Years) may be edited.

For each Asset Class use the drop down to select the Depreciation Method. Enter the Useful Life (In Years).

The three depreciation methods are:

Straight Line Depreciation Method - Straight Line Depreciation method is the most commonly used.  It is calculated by taking the purchase/acquisition price of the asset then subtracting the salvage value then divides the total productive years that the asset can be reasonably expected to benefit the company (useful life).

Example:

You buy a office equipment at the cost of $7,000. You expect a salvage value when you dispose of it to be $500. Useful life is five years.

$7,000 purchase price - $500 salvage value
-------------------------- (divided by) --------------------------
5 years estimated useful life

Annual depreciation charges using this method would be $1,300.

Double Declining Balance Depreciation - Double Declining Balance Depreciation method is somewhat like the straight-line method. First calculate depreciation as if they were using the straight line method. They then figure out the total percentage of the asset that is depreciated the first year and double it. Each subsequent year, that same percentage is multiplied by the remaining balance to be depreciated. At some point, the value will be lower than the straight-line charge, at which point, the double declining method will be scrapped and straight line used for the remainder of the asset’s life.

Example:

In our straight-line example, we calculated that $7,000 worth of office equipment with a $500 salvage value and an estimated useful life of five years would be depreciated by $1,300 annually. ($7,000 initial investment - $500 salvage value = $6,500].

Dividing $1,300 by $6,500, we discover the straight-line depreciation charge [$1,300] is 20% of the total depreciation amount. Using this information, we double the 20% figure to 40%.

In the first year, we would take $6,500 multiplied by .40 to get a total depreciation charge of approximately $2,600. We then take the total amount after salvage which is $6,500 subtract the depreciation amount of $2,600 and get the second year starting balance for of $3,900.

In the second year, we take the balance of $3,900 multiplied by .40 to get a total depreciation charge of $1,560.  We then take the total amount which is $3,900 subtract the depreciation amount of $1,560 and get the third year starting balance of $2,340.

In the third year, we take the balance of $2,340 multiplied by .40 to get a total depreciation charge of $936.  We then take the total amount which is $2,340 subtract the depreciation amount of $936 and get the fourth year starting balance of $1,404.

However, once the depreciation charges are lower then would have been charged using the straight-line method, the double declining balance is no longer used and you revert back to the straight line.

The straight line method depreciation per year was $1,300.   Using the Double Declining Depreciation method the third year depreciation would only be $936.  Since $936 is smaller than $1,300 you must revert back to Straight Line Depreciation.

Sum of the Years Digits - This depreciation method assumes that an asset loses its majority of its value in the first years of use.

To calculate depreciation charges using the sum of the year’s digits method, take the expected life of an asset (in years) count back to one and add the figures together.

Example:

6 years useful life = 6 + 5 + 4 + 3 + 2 +1 Sum of the years = 21

In the first year, the office equipment would be depreciated by 6/21 (28.57%) ($6,500 X .2857 = $1,857)  Office Equipment $6,500 – Depreciation $1,857 = $4,643.

Second year, the office equipment would be depreciated by 5/21 (23.80%) ($4,643 X .2380 = $1,105)  Office Equipment = $4,643 – Depreciation $1,105 = $3,538.

Third year, the office equipment would be depreciated by 4/21 (19.04%) ($3,538 X .1904 = $674)  Office Equipment = $3,538 – Depreciation $674 = $2,564. etc.

Located at the top left –hand side of the screen are two menu items. 

This input screen uses an OLAPPivot and accesses and modifies the Asset Management Firmwide cube. The dimensions used from the Asset Management Firmwide cube are: Year, Asset Management Measures, and Asset Class. Listed in the Columns is the Asset Management Measures dimension, in the Rows is Asset Class dimension, and the remaining dimensions are listed in the Page.

Depreciation Parameters by Office

This input screen enables you to enter Depreciation parameters by Asset Class by specified Office. From the Asset Parameters menu select Depreciation Parameters By Office to open the Depreciation Parameters By Office screen.

Figure 14.           Depreciation Parameters By Office

The Office drop-down enables you to select by Office the Depreciation parameter. This is the lowest level at which Depreciation Parameters can be entered and they will be overwritten if values are entered on the Depreciation Parameters Firmwide screen. You will not be able to enter values if they have already been entered on the Firmwide screen. Asset Classes are standard and cannot be changed. The other two fields Depreciation Methods and Useful Life (In Years) can be edited.

Located at the top left-hand side of the screen are two menu items:

This input screen uses an OLAPPivot and accesses and modifies the Asset Management Office cube. The dimensions used from the Asset Management Office cube are: Office, Year, Asset Management Measures, and Asset Class. Listed in the Columns is the Asset Management Measures dimension, listed in the Rows is the Asset Class dimension, and the remaining dimensions are listed in the Page.

 

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