Budgetary Control and Funds Check in Projects - A Case Study

1/27/12 My Oracle Support | Knowledge Browser | 1314706.
1
1/24 https://support.oracle.com/CSP/ui/flash.html#tab=KBHome(page=KBHome
Budgetar Control And Funds Check in Projects R12: A Case Stud Using a Non-Integrated Budget [ID 1314706.1]
Modified 17-JUN-2011 Tpe WHITE PAPER Status PUBLISHED
In this Document
A
D H
B C A F C P R12: A C S U N-I B
1. D C P C
2. R S O A
3. P O S
4. D P B C I O
5. D S B E M
6. D S R L
7. C C B
8. S B B
9. A I C L N.
10. E E C T (P: PO)
11. E E C T (P: S I)
12. T T
13. S H Q?
R
Applies to:
O P C - V: 12.0.0 [R: 12.0 ]
O P C - V: 12.0.0 [R: 12.0 ]
O P M - V: 12.0.1 [R: 12.0 ]
I .
F:PAXBUEBU.FMB - B
F:PAXPREPR.FMB - P
F:PAXREDRL.FMB - R L
F:PAXBUDBM.FMB - B E M
Abstract
E-Bine Sie: Oacle Pojec Coing Infomaion Cene > Noe 1314706.1
T P (PA) (.. G
L (GL), O P (PO), O P (AP)) -
.
Document Histor
A(): A L
C D: 18-A-2011
U D: 18-A-2011
Budgetar Control And Funds Check in Projects R12: A Case Stud Using a Non-Integrated Budget
1. Define Common Projects Configurations
T P
. Y O P O P.
I O P, O P I G. F P
O P U' G () P O P I G.
2. Required Setups in Other Applications
. E B C .
1/27/12 My Oracle Support | Knowledge Browser | 1314706.1
Setup > Financials > Accounting Setup Manager > Accounting Setups
Quer for the ledger:
Click "Update Accounting Options"
Select the ledger (then "Update") or directl click the update icon for the option "Define and update the journal processing options for
our ledger."
Under "Advanced Options" verif that the budgetar control option is enabled:
Note, ou must also provide a value for the Reserve for Encumbrance Account.
b. Enable encumbrance accounting in Oracle Paables and Oracle Purchasing
In Paables navigate to: Setup > Options > Financial Options
Select the correct operating unit
In the "Encumbrance" tab - enable 'Use PO Encumbrance' to enable encumbrances for PO's and Supplier invoices.
Optionall enable "Use Requisition Encumbrance" to encumber requisitions also.
Noe: In Purchasing the same form can be reached via Setup > Organiations > Financial Options. The setting in either location
applies to both applications.
c. Ensure that Purchasing (PO) and Paables (AP) SubLedger Accounting (SLA) setups allow for encumbrance accounting.
In the Subledger Accounting Method (SLAM) definition, this requires that ou have assigned Application Accounting Definitions (AAD) to both
the Purchasing and Paables applications which include the necessar burden cost event tpes, and encumbrance journal line tpes.
For Purchasing ou can assign the seeded "Purchasing Encumbrance Application Accounting Definition"
For Paables ou can use "Encumbrance Accrual" or "Encumbrance Cash" depending on the accounting method.
Alternativel ou can use these as models for our own custom application accounting definitions.
The seeded SLAM "Encumbrance Accrual" comes with these assignments:
I SLA , PO'
. I P :
T P
S A O. E ,
GL
. P
.
I P , een hogh he indicaed AAD i in fac alidaed:
A . T
A B O . P
S A.
T "E A F" ,
.
3. Profile Option Settings
T . P N 1315103.1 S
U P O B C I O P.
4. Define Project Budgetar Control and Integration Options
T . N "B T"
"N-P B" - . T T-D
B-U GL .
W , ,
, . W
(6) D S R L.
We are also using the amount tpe "Project to Date" and boundar code "Project" which means that funds will be checked using project totals for
budget, actual, and commitment amounts, not period specific balances.
Navigation: Projects: Budgetar Control
Please refer to Note 1315336.1 for additional details on these concepts and setting our budgetar control and integration options.
5. Define or Select a Budget Entr Method
Your budget entr method controls how our enter our budgets. It controls at what kind of budget amounts ou can enter, the level of our work
breakdown structure at which ou enter budget amounts, whether those amounts are time-phased, and whether the are broken down b resource.
These choices interact with the budgetar control and integration features in a variet of was. See Note 1315850.1 for additional details on how these
settings impact our usage of budgetar control and integration functionalit.
Navigation: Setup > Budgets > Entr Methods
In our case we have decided to enter amounts onl at the project level, and we will be entering budgeting amounts for the life of the project, not
individual periods. Amounts will be categoried and assigned to specific resources and resource groups. Because budgetar control is onl
applicable for cost budgets, we have enabled entr of the cost budget fields, but not revenue fields.
Noe: Even if our project does not allow burdening, ou must enable entr of burdened amounts if ou are using budgetar controls.
6. Define o Selec a Reoce Li
If our budget entr method has enabled the "Categorie b Resources" option (as ours has), ou will be required to assign a resource list to our
budget.
Reoce li allo o o caegoie amon b eoce and eoce gop. O eoce li caegoie o bdge amon b ependie
pe, and gop hee ependie pe b ependie caego. Becae o pojec' bdgea conol opion pecif ha conol leel hold
defal fom he eoce li fo he eoce and eoce gop leel, he eing e elec hee ae meaningfl. If e had eleced ome ohe
ale a hee leel on o pojec, hee eing old be ignoed.
Naigaion: Sep > Bdge > Reoce Li
Pleae ee Noe 1316123.1 fo addiional deail on eing p and ing eoce li ih bdgea conol and inegaion.
7. Creae he Conrol Bdge
Becae bdgea conol ae onl enfoced on epene commimen anacion (ch a Pchae Ode o Spplie Inoice), i i ofen
ggeed ha he conol bdge be ceaed pecificall o bdge fo ch anacion, and a econd bdge be ceaed fo he oeall pojec
ependie. Thi i he opion e hae choen.
Alenaiel, o cold ceae onl one bdge, b hae pecific epaae bdge line hich coepond o he epene commimen anacion
and aign he appopiae fnd conol leel fo hoe line, hile aigning a leel of 'None' o he ohe.
Naigaion: Bdge
The infomaion e ene i dependen on o bdge en mehod and eoce li a decibed in he ep aboe. In o cae, amon ae
eneed a he pojec leel and ae no ime-phaed, b ae caegoied b eoce.
We hae eneed amon fo he indiidal eoce "Maeial" and "Chemical" (boh in he eoce gop Maeial), and e hae eneed an
amon fo he eoce gop "Spplie" a he gop leel.
The conol leel fo hee eoce ee defined on he eoce li a "Abole' fo he eoce "Maeial" and he eoce gop "Spplie" and
"Adio" fo he eoce "Chemical".
Noe: Our budget entr method allows entr of both raw and burdened costs. The burdened cost amount we enter are the ones that will be used
in our funds available calculations.

8. Sbmi and Baeline he Bdge
When entr of budget amounts is complete, ou click the "Submit" button to submit our budget.
If our budget tpe has the "Use Workflow for Budget Status changes" option enabled, then when ou submit our budget, the PA Budget Workflow
will be kicked off. When the budget submission is approved via the workflow, baselining of the budget will continue automaticall.
In our case, our budget tpe does not use workflow for budget status changes, so when we click "Submit" the budget status is changed immediatel
to "Submitted". From this point we can either "Baseline" the budget, or click "Rework" if we wish to continue updating the budget.
Naigaion: Bdge

After our budget is submitted, we must baseline the budget. For integrated/controlled budgets the baselining process will kick off the "PA Budget
Integration Workflow". Until this workflow completes the draft budget status will remain "In Progress".

The PA Budget Integration Workflow is a deferred workflow, so ou will need to run the "Workflow Background Process" concurrent process in order
for it to complete. Be sure to run this process with parameters:
Process Deferred = Yes
Process Timeout = Yes
Once this process completes, the budget version should be baselined. In the budgets form the "Histor" button should now be enabled for ou to view
the baselined budget version
Impoan: The baseline process also creates our initial default budgetar controls, based on our
project and resource list setups, and establishes our initial budgetar control balances.
9. Adj Indiidal Conol Leel a Needed.
When ou initiall baseline our original budget, the default budgetar controls are established based on our settings in the project's budgetar
control options and optionall our resource list level settings.
Once the baseline is complete; however, ou have the abilit to adjust the individual control levels as required within the budgets form.
Navigation: Budgets: Tools > Budgetar Controls
The initial screen displas our project and task level control settings. In our case, because we are not budgeting at the task level, there are no
controls displaed at that level. Our project level control is absolute.
To view the resource and resource group level controls, click the "Resources" button:
H . I ,
.
A , - . R-
, .
A , "W B P" "PA B I
W" .
I .
Note: O ,
. E , - ,
. O . T
. I ,
. O, ,
"R D" , , - .
10. Enter Epense Commitment Transactions (Purchasing: PO)
A ,
P :
. I , (N PO: S >
P > B)
. T .
Are ou using approval hierarchies?
Y F O H R (N PO: S > O >
F O > H R) T ()
/ (). I ,
H R.
Can users approve their own purchase orders?
I , "O C A"
(N PO: S > P > D T) I ,
.
Who has the authorit to approve a given document?
T (N PO: S > A > A G /
A A) A . T
( / )
. Y
.
F P.
O :
1. L 1 $100 M. T ,
$1250
2. L 2 $200 E "N" ,
.
Note: O ' "M" 1
10%, "E" 2 . R
. S 1 $110, 2 $200.
Naigaion: Pchaing: Pchae Ode > Pchae Ode
Once he pchae ode i ceaed, o can manall check he fnd fo he ode, o fo a paicla line o diibion b clicking in a paicla
line, diibion o in he PO Heade and elecing "Check Fnd" fom he "Tool" men. Thi ill no affec he balance in Pojec b ill onl
eif if fficien fnd ei fo he pchae ode o line. If he check cceed, a e epec i o, o hold ee he folloing meage:
If o click he "Vie Rel" bon, o ill be peened ih a epo hoing he el of he fnd check like he folloing:
When ou approve the PO funds will be checked again, and if successful, records will be created in Projects which will update the balances
available. When ou run the PRC: Update Budgetar Control Balances process these records will be reflected in the "Budget Funds Check Results"
screen of the budgets form as seen below. Here ou can view balances at the various budget levels.
Navigation: Budgets: Histor > (Select Baseline Version) > Tools > View Funds Check Results
To ie he eoce leel balance click on he Reoce ab:
Note: Line 1 of he PO ha eled in a fnd edcion of $110 ahe han $100 becae he bden co applied o ha line i $10. The econd
line of he PO ha no had an bden co added becae he ependie pe of line 2 i no inclded in he bden ce and o ill no be
bdened.
11. Enter Epense Commitment Transactions (Paables: Supplier Invoice)
In Paable e ae going o aemp o ene a pplie inoice ha e epec o eceed o aailable fnd and fail fnd check.
We ill ene an inoice ih a ingle line and diibion fo ependie pe "Lab Spplie".
We do no hae an conol pecified fo hi pecific eoce; hoee, hi ependie pe oll p o he eoce gop "Spplie" hich e hae
aigned a fnd conol leel of "Abole".
We hae bdgeed $3750 a he eoce gop leel fo pplie, o e ill ene o pplie inoice fo $3800. The ependie pe "Lab
Spplie" i no pa of he bden ce fo o pojec, o hee hold be no addiional bden amon and he acal amon ed in he fnd
check hold be $3800.
Navigation: Paables: Invoices > Entr > Invoices
A in pchaing, o can manall check fnd fo he inoice o a paicla diibion, b naigaing eihe o he inoice heade o he diibion
and elecing "Check Fnd" fom he Acion men. Thi ill eif aailable fnd, and epo he el, b hi ill no affec fnd balance in
Pojec. Fnd balance ill onl be affeced hen he inoice i alidaed. When e pefom hi acion, a epeced e eceie a noificaion of
faile:
Clicking he "Vie Rel" bon open he folloing epo ih he deail of he fnd check opeaion:
The invoice validation process also performs a funds check. If successful, the invoice will proceed with validation, and the funds available balances in
Projects will be updated. If not as in this case, the validation will fail and a hold will be placed on the invoice as seen below:
In order to release this hold and successfull validate the invoice, we would need to either:
a. Increase the budget amount for the "Supplies" resource group to some value greater than $3,800 and rebaseline our budget or
b. Reduce the invoice and distribution amount to something below $3750.
In our case, we will go with option (a) assuming that the invoice amount cannot be changed and we need to adjust our budget to accept this cost. In
Projects we modif the budget amount for resource group "Supplies" to $4,000 raw cost and $5,000 burdened cost. We submit and baseline the
budget as before and run the Workflow Background Process to complete the baseline.
The baselined budget amount is as shown below.
Navigation: Budgets: Histor > Details
No hen e aemp o e-alidae he inoice in Paable e ae ccefl and he hold ha a placed on he inoice i aomaicall eleaed.
Since he inoice i no alidaed, e hold epec o ee he impac on o aailable fnd in pojec.
Navigation: Budgets: Histor > (Select Baseline Version) > Tools > View Funds Check Results
12. Troubleshooting Tips
See Note 1317340.1 for some technical detail on the data created in PA_BC_PACKETS, PA_BC_BALANCES and other related tables when we
perform the various budgetar control processes outlined in this case stud. This can also assist in interpretation of the outputs from the diagnostic
scripts mentioned below.
The following notes contain details on commonl asked questions and various troubleshooting tips:
Note 842624.1, FAQ: Budgetar Control / Funds Check / GbL Integration
Note 848274.1, Troubleshooting Fund Check/Budgetar Control Guide
Oracle provides a Diagnostic framework that includes Diagnostics that can help ou review and identif our funds check and budgetar control
issues. Please review the R12 Diagnostics Catalog, identif our point release and locate the diagnostics under Oracle Projects: Funds Check
For Release 12.0.6 and above,
Note 732309.1 Funds Check Data Collection: this collects information budgetar control options, budgets, and funds check data for a specific
project and transaction.
Note 732310.1 Funds Check Diagnostics: collects setup and file version information, and checks for some common data inconsistencies.
To access diagnostics in the application in Release 12.0.6 or above, the access path is as follows:
Pleae noe ha each diagnoic e noe inclde hi infomaion in he Uage ecion.
Responsibilit: Application Diagnostics
Navigation: Application Diagnostics > Diagnose
Click button Select Application and select Application "Projects"
Scroll down to group "Funds Check"
Select Test: Funds Check Data Collection or Funds Check Diagnostics.
13. Sill Hae Qeion?
To dic hi infomaion fhe ih Oacle epe and ind pee, e encoage o o eie, join o a a dicion in he M Oacle
Sppo Pojec Commni.

We hope o find hi infomaion efl. O deie i o poide he igh infomaion hen o need i. Pleae le kno ho e ae doing. We
elcome o feedback.
Refeence
NOTE:1315103.1 - Seing Up Pofile Opion fo Bdgea Conol and Inegaion in Oacle Pojec
NOTE:1315336.1 - Configing Bdgea Conol and Inegaion Opion fo a Pojec
NOTE:1315850.1 - Ue of Bdge En Mehod fo Bdgea Conol and Inegaion
NOTE:1316123.1 - Uing Reoce Li in Bdgea Conol and Inegaion
NOTE:1317340.1 - Undeanding Bdgea Conol Daa in Pojec
NOTE:842624.1 - FAQ: Bdgea Conol / Fnd Check / GL Inegaion
NOTE:848274.1 - Toblehooing Fnd Check/Bdgea Conol Gide
Relaed
Podc
Oacle E-Bine Sie > Pojec > Pojec > Oacle Pojec Coing
Oracle E-Business Suite > Projects > Projects > Oracle Project Costing
Oracle E-Business Suite > Projects > Projects > Oracle Project Management
Kewords
BUDGETARY CONTROL; CHECK; CONTROL; ENCUMBRANCE; FUNDS CHECK; INTEGRATION; SUBLEDGER ACCOUNTING
Errors
ERROR 1; ERROR 2
Back to top
Copyright (c) 2007, 2010, Oracle. All rights reserved. Legal Notices and Terms of Use Privacy Statement

Budgetary Control and Funds Check in Projects - A Case Study

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Budgetary Control and Funds Check in Projects - A Case Study

Transféré par

Droits d'auteur :

Formats disponibles

1/27/12 My Oracle Support | Knowledge Browser | 1314706.

Vous aimerez peut-être aussi