Budgetary control

1- Give role to yourself (employee)

2- Create user from users and security ( financials offerings) > all tasks >
manage users > add > fill the following attributes
General information
 first name + last name + title
 link user (link the user omar”employee” with the system user)
employment information
 job
 person type (employee)
 legal employer (choose legal entity)
 BU
 Grade; determine the level of salary and compensations and also the
authority and responsibility , for example and accountant is different
grade than sales representative and the CEO is in different grade to
the both of them , you can also determine arrange of grades for an
employee and based on his performance his grade a pay will change
from month to month
 Department + mail stop +location + manager
Resource information
 Resource role; determine the type of access of this employee to the
company’s data based on his position
 Reporting manger
 Organization
Roles
 Request roles

Note; you should check the flag of legal employee when creating from create legal
entity screen
3- Go to organizational structure ( financials offerings) > mange BU > choose
your business unit > choose yourself a manger over the business unit +
choose location and default set

Note; also the BU increase the data security of your company by assigning a
manager to the BU whom is the only one to access and see the data
Note; there are differences between being a manager of a business unit and
having data access set for this business unit , having DAS for the BU only
gives you the permission to view/read the data tables of the BU but being
the manager doesn’t only gives you permission to view the data but also to
make actions like (hiring , firing, making budgets, setting new projects)
4- Go to budgetary control and encumbrance accounting ( financials offerings)
> mange budgetary control > choose your bu > check flag “enable budgetary
control for the ledger and all journal sources and categories” attributes
 Enable budgetary control for the ledger and all journal sources and
categories
 Control budget filter (ledger only-project-ledger or project)
 Budgetary control validation failures; the type of failures that may
happen dealing with a budget like (Transaction budget date falls
outside of date range across all control budgets) flag which
means that when the journal date falls outside the budget open
periods it will give an error
(Transactions without project attributes don't have a matching chart
of account based control budget) if checked any transaction with no
project attributes will give an error when posting
 Enable encumbrance accounting; to define what encumbrance
accounting is we should define the difference between encumbrance
accounting and budgetary control

Budgetary control; is a way to Encumbrance accounting; away to

control spending as an over all ,
this is done through validating
journal transactions and making
sure it doesn’t override/exceed the
budget
control future commitments
(requisitions-purchase orders-
payables )
The encumbrance is defined as pre-
expenditures , used as a planning tool
to avoid over spending in the future
The encumbrance accounting
configuration starts with enabling
encumbrance accounting in manage
budgetary control then other
configuration steps in payables and
procurement application which
involves having journal entries for the
encumbrance
  Additional ledger options section:
A- Mapping between COA and budget accounts; is important tool because it
defines the segments that are included in control budget, so the journals
should be applied to it’s relevant budget. In this section we have our COF
segments with two options in the list beside them which are (1- always use
segment value from budget data 2- use specified value when not
provided in budget data ) the first one means that we allow all segment
values to be included in the budget and the second one means that we
specify certain values to the budget use
B- Revenue and cash controls; in this part we will make a budget control over
cash or revenues, this works through choosing a cash account for example
and a subsidiary control budget for cash will be generated as a result, this
subsidiary control budget will be a child to our main budget (our main
budget will be included as the source budget for the cash budget ) , in this
part we will have a checkbox “payables consumes the cash budget” which
means that paying payables will decrease our budget amount
C- Budgetary control journal exceptions; in this part we will detect certain
sources and categories that we will be exempted from budget validation

 Business unit section:

 Budgetary control enable checkbox; which enables budgetary
control over business unit functionality
 Enable encumbrance enable checkbox; which enables encumbrance
accounting over business unit functionality
 Default date rule; this attribute have three options. 1- system date,
which means that the budget will be liquidated based on system
date 2- current transaction budget date, which means that the
budget will be liquidated based on the the transaction date 3- prior
related transaction budget date, which means that the budget will
be liquidated based on the date of the previous similar transaction
date of that transaction, which mainly is an accounting standard
thing
 Procure to pay business functions; which indicate each function of
the BU and the option to perform budget control over it
 (procurement- requisition- receiving – expense management-
payable invoicing )

 Project Accounting Business Function; this function determine

whether or not the project accounting is subjected to budgetary
control

 Budgetary Control Journal Exceptions; these exceptions are like the

previous exceptions in additional ledger options but related to BU
functionality using certain sources of these journals

5- Mange control budget

Manage control budget can be accessed from two places 1- setup and
maintenance 2- from budgetary control task list
In manage control budget you access the control budgets you previously
made based on the mange budgetary control options you previously made,
if you didn’t already made a control budget you can make a new one
through the add sign and fill in the attributes
 Name+ description + calendar + from period to period
 Source; this indicates the parent control budget of this budget if you
don’t have parent budget you choose other to use the same control
budget as source
 Source budget name
 Currency + default rate type
 Control level; here we have 4 control levels each have his own
properties.
 Absolute; means that the transactions exceeding the budget will no
allowed to post and it will provide you with tolerance percentage and
amount
Advisory; the transactions that will exceed the budget will be allowed
to post but with a warning, also will provide tolerance percentage
and amount to avoid warning
Track; the journals exceeding the budget will be allowed to post with
out warning but it will track the consumption of the budget
None; the journals exceeding the budget will be posted with out
warning and it also will not track the consumption of the budget

 Ledger
 Budget manager
 Allow budget increase adjustments checkbox
 Allow budget decrease adjustments checkbox
 Allow budget decrease adjustments below funds available checkbox
 Allow overrides checkbox
 Control budget structure; this will allow you to choose the segments
that you want to impose budget on
 Tree details; this section include the tree hierarchy which you need to
implement a budget on including the parent accounts that could be
included in budget
 Supplemental rules; we do it when we need to apply exception from
the control level and tolerance over some account combination or
source, category , BU functionality

6- Give roles;
in this step y0u will go to manage budget data access for users , and give your
new roles access to the budget (budget manager- budget preparer)
7- Go to budgetary control application
8- Edit budget period structure
In this step open the task list and choose manage budget period statuses
and open the months that you need to open period for

9- Enter budget in spreadsheet

From the task list choose enter budgets in spreadsheet, a pop up window
will appear and fill in the attributes
 Budget usage; budgetary control validation which is used with
budgetary control activity, the other choice is budgetary control
validation and general ledger reporting is for EPM activity
 Budget entry classification; initial budget is used when you are in the
beginning of fiscal year and you are uploading the first budget,
budget revision is when you want to upload budget after uploading
the first budget.
 Control budget
 Start period + end period
 Entry budget name; this attribute gives the budget entry name so
that you can review the budget upload from review budget entries
 Retrieve current budget check box; this option blocks the
update/change of budgets for certain accounts
 Enter budget as; 1- new budget or replacement for previous budget
2- addition or subtraction from current budget

10- Review budget entries

11- Make journals
12- Review budgetary control balances