Defining a commitment accrual account and budget edit parameters

To accrue the commitment and encumbrance expenses before period closing is performed, a commitment accrual account must be set up. The system will use the accrual account to offset the expenses from the commitment and encumbrance records, and create an auto reversing entry for the next period. See Accruing Commitments and Encumbrances at Year End.

To edit budgets, you must also assign the accounts that you want the system to perform the edits.

Use this procedure to assign an accrued commitment account to the chart of accounts and define budget edit parameters.

  1. Access Chart of Accounts (GL00.1).
  2. Select Accounts to access Detail Account (GL00.3).
    Note: You can override budget edit parameters at the posting account level.

    See Defining Budget Edit Parameters for Posting Accounts.

  3. Define an Accrued Commitment detail account. This account is required if you selected Yes for GL Commit on System Codes (GL01.4). SeeDefining a chart of accounts.
  4. Return to Chart of Accounts (GL00.1).
  5. Select System Accounts to access System Accounts (GL00.7).
  6. Select the Commitments tab and assign the Accrued Commitment detail account that you defined.
  7. Return to Chart of Accounts (GL00.1). You must indicate which accounts will use the budget editing. You can define budget editing for summary or detail accounts. To define budget editing at the summary level, click More beside the summary account that you want to define the budget editing. The Summary Account Options (GL00.5) subform displays.
  8. Select the Commitments tab. Indicate that you want to allow Budget Edit processing to occur for the detail accounts under the summary account.
  9. (Optional) To define budget editing at the detail account level, return to Chart of Accounts (GL00.1). Select Accounts, beside the account that you want to define the budget editing. The Detail Account (GL00.3) subform displays.
  10. Click More beside the detail account that you want to define the budget editing. The Account Information (GL00.4) displays.
  11. Select the Commitments tab. Indicate that you want to allow Budget Edit processing to occur for the detail account.
    Note: If the Budget Edit field is left blank, then the system will use the summary account value.