Front end split
For setup, see the Project Ledger chapter in the Financials Setup and Administration Guide.
This table shows a high level overview of the tasks to complete for setup:
| Setup area | Description |
|---|---|
| Finance Enterprise Group (FEG) | Enable front end split. If fund accounting is used, specify the dimension for the fund. Otherwise, select blank. If accounting unit or finance dimension 1 are selected as the fund dimension, then the dimension must be provided in the revenue finance structure for the project contract funding source. If the budget system is not used, then select the Use Contract Funded Amounts check box. This check box is available when front end split is enabled. The funded amounts on the project contract are used as the maximum amounts for the front end split distributions actions. |
| Global Ledger System Codes |
Set Encumbrance Option to Track and Edit for system codes AP, GL, PO, and RQ. |
| Project Contract Front End Split check box |
A front end split field on a project contract indicates that the contract is split before invoicing occurs. The front end split check box is only available if front end split is also enabled on the finance enterprise group. If front end split is enabled, then allocate expenditures cannot be enabled. |
| Project Funding Sources | Set up funding sources. Include priority, percentage, funding group, revenue
finance structures, and eligibility criteria. The priority for the project funding source, funding group, and percent are used in the front end split allocation for GL, RQ, PO, and AP. When a requisition or purchase order is released or a payables invoice is approved, or both, the budget edit or funded amount is verified. When a manual global ledger entry is released or transactions are interfaced, the budget edit or funded amount is verified. When budgets or funded amounts are used for validation: When the approve or release action is run, the edit verification is performed on the project contract and the funding sources. Whether the remaining expenditure budget or funded balance is large enough for the allocation is determined by the edit. |
| Project Contracts and Funding Source Dimensions | Verify that project contracts, funding sources, and other budget dimensions are
enabled for inclusion in budget edit. If budgets are used, then verify that funding sources and other budget dimensions are enabled for inclusion in budget edit. |
| Set up project budget scenarios and import budget data | To use standard actual to budget reports, including project obligations and project variance, include the account as a budget scenario dimension. When you import budget data, and budget template is LTD, verify that the budget period is the first period for the project. This practice ensures that the entire LTD budget amount is available for the life of the project. |
| Budget template rules | If you select entity functional currency, then you must perform a budget edit by
accounting entity. If you post inter-entity expenses to the project, then you can avoid providing budgets by accounting entity if you select Report1 currency. |
| Prepare budget scenarios and templates. Validate template groups |
Review the budget template groups that are in Ready status to verify that the correct dimensions are included in the budget edit group. If the correct dimensions are not included, then verify that the budget ID and the budget edit fields are selected on the dimension setup. |