Budget Control Overview

Budget Control is an integrated process that is used to track and control the budget-related business transactions. Budget control is also known as Encumbrance Accounting or Commitment Accounting. The process enables financial managers to precisely define how and when budgets are controlled. The functionality facilitates real-time budget checking and thereby, prevents unauthorized deficits. Supported Business Processes are procurement flows, Journal Vouchers, Purchase Invoices and so on.

The Budget Control module in the Financials package is designed to integrate accounting and budgeting functions into the underlying business processes. Accounting distributions are retrieved from the appropriate policy levels, such as requisition entities, vendors, or purchased commodities.

The Budget Control defines the relationship between accounting and budgeted funds through the roll up structures.

The Budget Control supports among other the following budgeting activities:

  • Budget policy management
    Budget managers can set up company-wide finance policy to control budget. The settings in the Budget Control Policy (tfbgc0110m000) session determine how budgets are controlled for the various document types.
  • Budget structure
    Budget Control enables budget managers to transform the existing budget structures into a new budget structure while retaining existing budget accounts and General Ledger account mapping. You can define the budget roll-up structures and budgetary levels.
  • Budget authorizations
    Authorizations can be defined for users or roles and budget accounts.
  • Budget transfers/ amendments
    Budget managers can make budgetary transfers/ amendments during the budget year.
  • Exception handling
    Budget Control functionality allows you to analyze and resolvie the exceptions.
  • Budget balances
    The budget balances functionality determines how budget amounts can be entered and how the budget balances are displayed. Example: Annually or Periodically.
  • Budget adjustments
    Budget managers can make direct adjustments to the budget control balances. Budget adjustments can be specified to correct a budget balance if required. Managers can also reserve the budgets in anticipation of a future transaction.
  • User Profiles
    For a user profile, the budget manager can define the notification levels and text templates to notify other users.