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Administrator Guide
Last Updated: 2024-09-20
Steps: Set Up Revenue Driven Budget Rules

Steps: Set Up Revenue Driven Budget Rules

You can use Revenue Driven Budget Rules to automatically increase available budget amounts based on revenue recorded in:
  • Accounting Journals
  • Ad Hoc Bank Transactions
  • Cash Sales
Example: A department can spend the amount of collected fees in addition to their approved operating budget. The approved budget for the department is 100,000 USD. The posted revenue recorded on an accounting journal is 25,000 USD. When you use revenue driven budget rules, Workday automatically increases the budget to 125,000 USD when the journal posts. When you turn on budget check for this budget, the budgetary control amount available for spending is 125,000 USD.
Note: When you manually correct an Accounting Journal from the
Accounting Journal Event
 business process, Workday won't cancel original budget increases or add new budget increases through Revenue Driven Budget Rules. Workday recommends that when you configure the
Accounting Journal Event
 business process security policy, you limit corrections.
  1. Edit Domain Security Policies
    Grant users who can create and maintain revenue driven budget rules access to the
    Set Up: Revenue Driven Budgets
     domain.
    If you assign constrained security groups access to the Set Up: Revenue Driven Budgets domain, they'll have access to unconstrained privileges. Workday recommends you use unconstrained security groups in the security set up.
  2. Activate Pending Security Policy Changes.
  3. Access the
    Create Revenue Driven Budget Rule
     task.
    In the
    Revenue Source Definition
     section, enter the source criteria for incoming revenue transactions to result in a budget line increase.
    In the
    Revenue Budget Increases
     section, enter the resulting plan and plan line attributes that Workday creates once the
    Revenue Source Definition
     is met.
    As you complete the task, consider:
    Default ~Entry Type~
    Workday recommends accessing the
    Maintain Entry Types
     task to create a new entry type specific to Revenue Driven Budgets to use on rules.
    ~Plan~
    Only plans using amendments on approval display for selection.
    Plans must be in
    Available
     status to generate automatic increases to the budget.
    Worktags
    Workday uses worktags to match journals with revenue source on rules. Journals can have many worktags but need to have at least the same worktags as a revenue source or be a subordinate of a hierarchy value on the rule.
    Journal Source
    Select 1 or more journal sources for supported transactions to apply to a rule.
  4. (Optional) Access the
    Maintain Revenue Driven Budget Rule Evaluation Order
     task.
    For revenue driven budget rules using hierarchies, assign an order for revenue driven budget rules. Workday evaluates the ordering of rules from top to bottom set by this task and uses the first rule it finds with matching criteria.
  5. Create revenue transactions based on your
    Revenue Source Definition
    .
  6. (Optional) Edit rules by selecting
    Revenue Driven Budget Rule
    Edit
     from the related actions menu of the
    Company
    .
    You can edit rules to change budget values and point to new budgets for subsequent years. Once Workday uses a
    Revenue Source Definition
     you can't use it in other rules even if the rule is inactive.
  7. If you don't configure a
    Floor
     and
    Ceiling
    , the fields
    Floor
     and
    Ceiling
     display a 0 indicating neither a
    Floor
     nor a
    Ceiling
     applies for that revenue driven budget rule.
When you record revenue on an accounting journal, Workday automatically creates a new budget line that increases budgets defined by the rule.
You can use the
Revenue Driven Budget Balance and Spend
 report to view a detailed budget to actuals balance of expense ledger accounts and ledger account summaries for a financial plan that uses revenue driven budget rules.