Budget Models

In HR Funds and Position Management, budgets can be monetary budgets or full-time equivalent budgets (FTE budgets).

Monetary budgets are based on a ‘pooling’ model; FTE budgets are based on a ‘capacity’ model.

The budget unit "FTE" was designed specially for Germany, and should therefore only be used in Germany.

If HR Funds and Position Management is integrated with Funds Management, you can only use monetary budgets.

Pooling Model:

 

The pooling model used for monetary budgets means that monetary budgets (= money) are pooled, freely available, and can be allocated at any time until they are used up.

You have a budget of $365,000 for the financial year. You can spend the entire budget on January 1, or spend $1,000 a day for the entire financial year.

 

Capacity Model:

 

This model means that FTEs are distributed gradually over the financial year (i.e. that you can only allocate one FTE per day). One FTE corresponds to the financing required for a full-time employee per financial year.

You cannot use one FTE to finance two full-time employees from January 1 through June 30.