Setting Budgetary Control Options for an Account Range

If you are using budgetary control for your set of books, you can set budgetary control options for an assigned account range. You can only assign budgetary control options to account ranges with your functional currency and a budget entry type of Entered.

1. Select Automatic Encumbrance accounting to automatically create encumbrance batches for transactions originating from your feeder systems such as Oracle Purchasing and Oracle Payables. If you do not select Automatic Encumbrance, you must enter a funds check level of None.

2. Select the Funds Check Level.
Enter a Funds Check Level to control the severity of budgetary control checks. You use a Funds Check level when setting budgetary control options for account ranges, for source and category combinations in budgetary control groups, and for summary account templates in budget organizations.
None: for no funds checking or funds reservation.
Advisory: for online notification when transactions fail funds checking. The system still reserves funds for transactions even when no funds are available.
Absolute: to prohibit you from reserving funds for a transaction unless funds are available.
Attention: Advisory budgetary control makes it easy for you to overspend a budget by an unlimited amount. You might want to use Absolute budgetary control with tolerances or overrides to allow you to approve selected transactions for which no funds are available.

3. If you select an Advisory or Absolute funds check level, enter the Amount Type and Boundary to determine the time interval over which to perform funds checking.
To check funds, you must define a funds checking time interval. You enter an Amount Type to determine the cumulative balance to use for the funds checking interval. You enter a Boundary to define the end point of the interval.
The combinations of amount types and boundaries that the system supports are as follows:

  • If the amount type is PTD, boundary can be Period.
  • If the amount type is QTD, boundary can be Period or Quarter.
  • If the amount type is YTD, boundary can be Period, Quarter or Year.
  • If the amount type is PJTD, boundary can be Period, Quarter, Year, or Project.

4. If you select an Advisory or Absolute funds check level, enter the name of the Funding Budget against which you want General Ledger to check or reserve funds. You must enter a budget which requires budget journals.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules