Budget Control

Budget Control is an integrated information system that tracks and controls budget-related business transactions. Financial health is continuously monitored by capturing sources and uses of budgets as they are committed and realized. Real-time budget checking prevents unauthorized deficits. Budget Control is designed to integrate accounting and budgeting functions into underlying business processes. Accounting distributions are retrieved from the appropriate policy levels, such as requisition entities, vendors, or purchased commodities. The relationship between accounting and budgeted funds is determined through roll-up structures.

• Budget control policy

  Budget checking must be executed on documents, such as purchase requisitions, purchase orders, and invoices. The Budget Control Policy indicates if a budget must be checked for a specific document type or business object. Based on a Budget Control Policy parameter, the budget check must be executed for a line when a document line entry is saved or when each line in the document is approved.

• Budget accounts

  A budget is constructed in a hierarchy by using budget summary levels (nodes and levels). Each level consists of budget accounts and their budget amounts. A combination of a budget account and a budget amount is also referred to as a bucket. At the lowest level of the budget hierarchy, a budget account is linked to multiple combinations of ledger accounts and dimensions. The determination of the lowest level depends on the level of budget control required. The relationship between budget accounts and General Ledger is maintained in distribution tables.

• Budget structure

  Budget structure is the hierarchy that contains all roll-up structures and budget accounts. A budget structure has a minimum of five roll-up structures or summary levels. On each summary level a budget can be attached to a budget account. A budgetary roll-up structure defines the budget accounts and dimensions to which detail accounts used by procurement, receivable, and ledger documents roll up. Budget amounts can be recorded at any level in the budgetary roll-up structure and for multiple branches within the same structure. They can be controlled by period or on an annual basis. The budget currency can be one of the home currencies. A budget account does not have to be linked to the next higher level; it can also be linked directly to the budget structure.

• Receive exception notifications

  If an exception occurs, a notification is sent to the all registered users of the budget account. To modify the account, users must have the proper authorization.

• Budget Manager Dashboard - overview

  Budget Manager dashboard provides a complete overview of the budget accounts of a budget. Managers can control and monitor all the budget activities of all the budget structures

• Budget balances

  You can review the types of budget balances for the selected budget account and budget period in the budget manager dashboard. The budget balances must be updated for a transaction such as budget check, release, amendment and budget transfer.

  The types of budget balances are:

  • Budget
  • Allotment
  • Commitment
  • Encumbrance
  • Receipt Expense
  • Expense

• Budget transfers

  Budget transfers are two-sided transactions that shift equal amounts of budgets from one budgetary account to another. Transfers and amendments generate an audit transaction in the budgetary transaction file and can only be executed if the sufficient budget is available. Any transfer of the budget, for example, a transfer budget from one budget pool to another, requires an audit trail. You must specify a reason code for the budget transfer.

• Budget control adjustments

  A budget control adjustment is used to retroactively adjust budget transactions which can be an adjustment to a budget balance such as the Commitment or Encumbrance balance . A budget control adjustment is also used to create opening balances and reservation of budget for a future transaction.

• Budget amendments

  Although you cannot update a confirmed budget directly, amendments enable subsequent budgetary updates in a controlled way. All budget amendments must be recorded by a budget transaction. Budget amendments are one-sided transactions that increase or decrease budget amount. After a budget is locked, users must specify a change or reason code to justify the budget. Any amendment of the budget requires an audit trail.

• Reconciliation of budget balance with GL balance

  This report reconciles general ledger transactions with budget transactions. The selection input is the budget account (range), period, amount class and summary level. The document reference is used to retrieve the corresponding ledger transactions. The budget transactions with the exception status are included in the selection.

• Year end process

  You use the year end procedure to move budget amounts and the related budget transactions to a new budget in the new fiscal year, define a new budget, or copy an old budget transaction and amount to a new budget.

• Compare budget balance

  You can view budget balances for the selected budget and budget year.