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Budgetary Controls: Available Functionality/Features

The budgetary controls feature in Oracle Projects provides functionality to control expenses against project budgets. It allows setting budget control levels at the project, project template, or project type level to either stop, warn, or allow transactions over budget. The controls check expense transactions like purchase requisitions and invoices against raw or burdened budgets, accounting for burden costs. Configuration and a funds check report help monitor budgets, commitments, and balances. However, the controls only apply to certain expense transactions and do not integrate with other systems.

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87 views2 pages

Budgetary Controls: Available Functionality/Features

The budgetary controls feature in Oracle Projects provides functionality to control expenses against project budgets. It allows setting budget control levels at the project, project template, or project type level to either stop, warn, or allow transactions over budget. The controls check expense transactions like purchase requisitions and invoices against raw or burdened budgets, accounting for burden costs. Configuration and a funds check report help monitor budgets, commitments, and balances. However, the controls only apply to certain expense transactions and do not integrate with other systems.

Uploaded by

siva_lord
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© © All Rights Reserved
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Budgetary Controls

Available Functionality/Features: -

1) The budgetary controls setup provides a control over the expense budgets on a given
project. For example, if a project has a requirement to control the expense budget for
$1,000 then this feature can be enabled on a project and when the actuals amount reaches
budget amount of $1,000 the system will throw an exception and will stop or throw warning
messages to users from creating transaction.
2) The budgetary controls can be configured as per business requirements with different
control levels
a. Absolute: This level will stop the users entering the transactions beyond the budget
amount
b. Advisory: This level will allow the users to create transactions, but will throw an
informative warning message.
c. None: This level will not check whether funds are available and allow users to enter
transactions.
3) The budgetary controls can be setup at multiple levels
a. Project Type
b. Project Template
c. Project
4) The funds check will be performed on all Expense transactions like Project related Purchase
Requisitions and Purchase Orders with destination method of “Expense” where there are no
Inventory items involved. Also, the funds check will be performed at project level supplier
invoice levels.
5) When the budget amounts are populated, system allows the users to populate both Raw
and Burdened Costs. The budget controls funds check feature will take care of both Raw and
Burdened Costs when the transactions go thru the funds check process. The feature
supports the burden calculated on same expenditure item and burden calculated as
separate expenditure item. The funds check process will calculate the burdened cost (raw +
burden cost) on each transaction and compare with budget amount to make sure that its
not exceeding the budget amount.
6) The funds check report in R12.2.4 and later is very useful to review the budgetary controls
setup at project, top task and lower task levels explaining about the budgeted amounts,
actual amounts, commitment amounts and balance amounts. So that, business can make
necessary adjustments to either budget or transaction amounts.
7) The cost and revenue budgets in Oracle projects can be setup inline with expense budget in
Oracle General Ledger and these can be integrated, so that the encumbrance entries as a
result of funds check can be posted to GL.
8) The R12 version 12.2.4 allows users to setup the budgetary controls at financial plans level
as opposed to form based budgets model.
Restrictions/Limitations:

1) The budgetary controls feature only allowed for Expense transactions like Project related
Purchase Invoices, Purchase Orders and supplier invoices. It means, following transactions
cannot be controlled thru the budgetary controls:
a. Inventory Item related Purchase Requisitions
b. Inventory Item related Purchase Orders
c. Miscellaneous Inventory Issues from Inventory
d. Labor Hours/Cost from Oracle Time and Labor
2) The feature doesn’t support any cost coming from third-party systems like Concur for
expenses, workday for timekeeping, etc.
3) The Oracle expenses doesn’t do the funds check/budgetary control check on employee
expenses. To workaround, the funds check should be done as part of the employee expense
approval process.
4) The intercompany transactions/cross-charge transactions between multiple ledgers doesn’t
go thru the budgetary controls check. For example, if project belongs to Ledger1 and any
expense transactions from Ledger2 will not go thru the funds check due to current
limitations.
5) Transaction Controls feature at project/task level controls any transactions flowing into
Projects. On the same lines, the budgetary controls should also perform similar level of
check before allowing the users to create transactions.
6) If a project/task already have transactions created, the current functionality doesn’t allow
users to enable the budgetary controls.

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