Budgetary Control

Oracle ® Projects

Oracle Projects 11i Mini-pack H (Release 11i.PA.H)

Documentation Supplement • Implementation and User Guide

• Product Update Notes

• Patch Application Steps and Information

March 2002 Version 1.1

Oracle Projects 11i Mini-pack H Documentation Supplement Page ii

Oracle ® Projects

Oracle Projects 11i Mini-pack H (Release 11i.PA.H)

Documentation Supplement

March 2002 Version 1.1

Copyright © 2001, 2002, Oracle Corporation. All rights reserved.

Primary Authors: Barbara Fox and Steve Gordon

Contributing Author: Gustavus Kundahl

Contributors: Christopher Andrews, Sandeep Bharathan, Janet Buchbinder, Peter Budelov, Neeraj Garg, Danielle Hafdal, Dinakar Hituvalli, Bhumesh Konda, Jeanne Lowell, Suhail Maqsood, John May, Sridhar Sairy, C.V. Subramanian, and Murali Sundaresan

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Oracle Projects 11i Mini-pack H Documentation Supplement Page iii

Contents

Preface __________________________________________________________________ 7 Audience______________________________________________________________________ 7 Related Publications ____________________________________________________________ 7 Documentation Accessibility _____________________________________________________ 7 About Oracle __________________________________________________________________ 8 Overview of New Features _______________________________________________________ 9

Chapter 1: Budgetary Controls ______________________________________________ 11 Budgetary Controls Overview ___________________________________________________ 12

Prerequisites________________________________________________________________________ 12 Budgetary Controls Use_______________________________________________________________ 12 Online Funds Checking _______________________________________________________________ 12

Budgetary Control Settings _____________________________________________________ 13 Time Intervals ______________________________________________________________________ 13 Control Levels ______________________________________________________________________ 19

Budget Amount Entry__________________________________________________________ 24 Budget Amounts for Resources _________________________________________________________ 24 Burden Cost Amounts ________________________________________________________________ 25

Budget Definition Strategies_____________________________________________________ 28 Strategy One: Define Two Budgets ______________________________________________________ 28 Strategy Two: Define One Cost Budget___________________________________________________ 28 Budget Strategy Examples_____________________________________________________________ 29

Transaction Processing_________________________________________________________ 35 Funds Check Activation In Oracle Purchasing and Oracle Payables_____________________________ 35 Funds Check Activation in Oracle Projects ________________________________________________ 35 Viewing Transaction Funds Check Results ________________________________________________ 36

Maintaining Budgetary Control Balances _________________________________________ 40 Viewing Budgetary Control Balances ____________________________________________________ 40 Modifying Budget Amounts ___________________________________________________________ 43

Budgetary Controls Cross Charge Restriction______________________________________ 44 Projects Budgetary Controls Implementation Steps _________________________________ 45

Defining Profile Options for Budgetary Controls ___________________________________________ 46 Defining Control Levels and the Time Interval _____________________________________________ 47 Creating and Baselining an Initial Budget _________________________________________________ 51 Adjusting Default Control Levels _______________________________________________________ 52

Chapter 2: Budget Integration_______________________________________________ 55 Budget Integration Overview____________________________________________________ 56

Bottom-Up Budget Integration _________________________________________________________ 56 Top-Down Budget Integration__________________________________________________________ 56

Oracle Projects 11i Mini-pack H Documentation Supplement Page iv

Integration Procedures _________________________________________________________ 57 Account Generation Overview__________________________________________________________ 57 Project Budget Account Workflow ______________________________________________________ 58 Account Generation __________________________________________________________________ 59 Account Review and Override__________________________________________________________ 59

Account Generation Example ___________________________________________________ 63 Fremont Corporation Background _______________________________________________________ 63 Account Generation Business Rules _____________________________________________________ 63 Business Rule Implementation__________________________________________________________ 64 Account Generation Test ______________________________________________________________ 65

Chapter 3: Bottom-Up Budget Integration _____________________________________ 67 Bottom-Up Budgeting Overview _________________________________________________ 68

Projects Bottom-up Budget Integration ___________________________________________________ 68 Bottom-Up Budget Integration Procedures ________________________________________ 69

Defining an Organization-Level Budget __________________________________________________ 69 Defining Budget Integration ___________________________________________________________ 70 Entering Budget Amounts and Generating Accounts ________________________________________ 71 Deferred Workflow Process____________________________________________________________ 71 Baseline Validations _________________________________________________________________ 72 Creating Budget Journals______________________________________________________________ 74 Posting Budget Journals_______________________________________________________________ 74

Bottom-Up Budget Integration Examples__________________________________________ 75 Fremont Corporation Example__________________________________________________________ 75 GL Funding Budget Integration Example _________________________________________________ 78

Projects Bottom-Up Budget Integration Implementation Steps________________________ 80 Defining the Project Budget Account Workflow Process _____________________________________ 80 Defining the PA: Allow Override of Budget Accounts Profile Option ___________________________ 80 Defining the PA: Enable Budget Integration and Budgetary Control Feature Profile Option __________ 80 Defining Integration for Project Types, Project Templates, and Projects _________________________ 80

Chapter 4: Top-Down Budget Integration _____________________________________ 83 Top-Down Budgeting Overview__________________________________________________ 84

Projects Top-Down Budget Integration ___________________________________________________ 84 Top-Down Budget Integration Procedures_________________________________________ 85

Implementation Prerequisites___________________________________________________________ 85 Defining General Ledger Funding Budgets ________________________________________________ 85 Defining Budget Integration ___________________________________________________________ 86 Creating Project Encumbrances_________________________________________________________ 87 Liquidating Project Encumbrances ______________________________________________________ 87

Top-Down Budget Integration Example___________________________________________ 88 Fremont Corporation Cost Controls______________________________________________________ 88 Payroll Enhancement Project___________________________________________________________ 88

Project Budget Creation________________________________________________________ 92 Budgetary Controls __________________________________________________________________ 92 Entry Method and Budget Line Accounts _________________________________________________ 92 Budget Lines for all Budget Periods _____________________________________________________ 92 Deferred Workflow Process____________________________________________________________ 93 Baseline Validations _________________________________________________________________ 94

Transaction Processing_________________________________________________________ 96

Oracle Projects 11i Mini-pack H Documentation Supplement Page v

Commitment Transaction Example ______________________________________________________ 96 Burden Cost Encumbrance Accounting___________________________________________________ 97

Budgetary Control Balance Maintenance_________________________________________ 102 Project Budget Maintenance ___________________________________________________ 103

Project Budgetary Controls ___________________________________________________________ 103 Funding Budget Controls_____________________________________________________________ 103 General Ledger Period Statuses ________________________________________________________ 104 Project Encumbrance Maintenance _____________________________________________________ 104

Year-End Processing__________________________________________________________ 105 Year End Budget Rollover Process _____________________________________________________ 105 Year-End Rollover Example __________________________________________________________ 106

Projects Top-Down Budget Integration Implementation Steps _______________________ 107 Defining the Project Budget Account Workflow Process ____________________________________ 107 Defining the PA: Allow Override of Budget Accounts Profile Option __________________________ 107 Defining the PA: Enable Budget Integration and Budgetary Control Feature Profile Option _________ 107 Defining the PA: Days to Maintain BC Packets Profile Option _______________________________ 107 Defining Integration for Project Types, Project Templates, Projects____________________________ 108

Chapter 5: Top-Down Budget Integration with Oracle Contract Commitments_______ 111 Integration with Oracle Contract Commitments Overview __________________________ 112

Oracle Contract Commitments_________________________________________________________ 112 Projects Top-Down Budget Integration __________________________________________________ 112

Contract Commitments Integration Procedures ___________________________________ 113 Implementation Prerequisites__________________________________________________________ 113 Defining Funding Budgets____________________________________________________________ 113 Defining Budget Integration __________________________________________________________ 114 Creating Project Encumbrances________________________________________________________ 115 Liquidating Project Encumbrances _____________________________________________________ 116

Project Budget Creation_______________________________________________________ 123 Budgetary Controls _________________________________________________________________ 123 Entry Method and Budget Line Accounts ________________________________________________ 123 Budget Lines for all Budget Periods ____________________________________________________ 123 Deferred Workflow Process___________________________________________________________ 124 Baseline Validations ________________________________________________________________ 125

Budgetary Control Balance Maintenance_________________________________________ 127 Project Budget Maintenance ___________________________________________________ 130

Project Budgetary Controls ___________________________________________________________ 130 Funding Budget Controls_____________________________________________________________ 131 General Ledger Period Statuses ________________________________________________________ 131 Project Encumbrance Maintenance _____________________________________________________ 131

Year-End Processing__________________________________________________________ 132 Year End Budget Rollover Process _____________________________________________________ 132 Year-End Rollover Example __________________________________________________________ 133

Contract Commitments Integration Implementation Steps __________________________ 134 Defining the Project Budget Account Workflow Process ____________________________________ 134 Defining the PA: Allow Override of Budget Accounts Profile Option __________________________ 134 Defining the PA: Enable Budget Integration and Budgetary Control Feature Profile Option _________ 134 Defining the PA: Days to Maintain BC Packets Profile Option _______________________________ 134 Defining Integration for Project Types, Project Templates, Projects____________________________ 135

Oracle Projects 11i Mini-pack H Documentation Supplement Page vi

Chapter 6: New and Changed Processes______________________________________ 139 New Processes _______________________________________________________________ 140

Maintain Budgetary Control Balances___________________________________________________ 140 Year End Budget Rollover____________________________________________________________ 141

Changed Processes ___________________________________________________________ 142 Chapter 7: Product Update Notes ___________________________________________ 145

Modules ____________________________________________________________________ 146 New Forms________________________________________________________________________ 146 Changed Forms ____________________________________________________________________ 146 New Windows _____________________________________________________________________ 147 Changed Windows__________________________________________________________________ 147 New Reports ______________________________________________________________________ 147 New Concurrent Programs____________________________________________________________ 147 Changed Concurrent Programs ________________________________________________________ 148 Other Changed Programs_____________________________________________________________ 148 New Workflows/Account Generator Processes ____________________________________________ 149

Database Objects_____________________________________________________________ 150 New Tables _______________________________________________________________________ 150 Changed Tables ____________________________________________________________________ 150 Obsolete Tables ____________________________________________________________________ 150 New Views________________________________________________________________________ 151 Changed Views ____________________________________________________________________ 151 New Indexes ______________________________________________________________________ 151 Obsolete Indexes ___________________________________________________________________ 152 New Sequences ____________________________________________________________________ 153

Seed Data ___________________________________________________________________ 154 Changed Menus ____________________________________________________________________ 154 New Profile Options ________________________________________________________________ 154

Chapter 8: Patch Application Steps and Information ___________________________ 155 Post-Upgrade Steps ___________________________________________________________ 156

Appendix A: Project Budget Account Workflow Parameters______________________ 157

Appendix B: Funds Check Result Messages___________________________________ 159

Glossary _______________________________________________________________ 163

Index __________________________________________________________________ 165

Oracle Projects 11i Mini-pack H Documentation Supplement Page 7

Preface

Welcome to Oracle Projects 11i Mini-pack H (Release 11i.PA.H). This documentation supplements the following manuals:

• Oracle Projects User Guide, Release 11i

• Oracle Projects Release 11.5.3 / Mini-pack B (Release 11i.PA.B) User Guide Supplement

• Oracle Projects Release 11.5.4 Documentation Supplement / Release 11.5.4 / Mini-pack D (Release 11i.PA.D)

• Oracle Projects Release 11.5.6 Documentation Supplement

Note: Release 11.5.6 consolidates Oracle Projects 11i Mini-pack E (Release 11i.PA.E), Oracle Projects 11i Mini-pack G (Release 11i.PA.G), and Oracle Project Resource Management 11i Mini-pack B (Release 11i.PRM.B).

This supplement describes only the new functionality available in Oracle Projects 11i Mini-pack H. If you are not already familiar with Oracle Projects, or are implementing Oracle Projects for the first time, you should read this document in conjunction with the manuals listed above.

Audience This manual is written for the persons responsible for using and installing Oracle Projects. They may include Oracle Projects users, your implementation team, application specialists, database administrators, system administrators, and others.

This supplement includes descriptions of new features, implementation steps, and product update notes.

Related Publications In addition to this supplement and the other manuals in the Oracle Projects documentation set, you may want to refer to the following documents:

• Installing Oracle Applications, Release 11i

• Upgrading Oracle Applications, Release 11i

• Oracle Applications User’s Guide, Release 11i

Documentation Accessibility Our goal is to make Oracle products, services, and supporting documentation accessible, with good usability, to the disabled community. To that end, our documentation includes features that make information available to users of assistive technology. This documentation is available in HTML format, and contains markup to facilitate access by the disabled community. Standards will continue


to evolve over time, and Oracle Corporation is actively engaged with other market-leading technology vendors to address technical obstacles so that our documentation can be accessible to all of our customers. For additional information, visit the Oracle Accessibility Program Web site at http://www.oracle.com/accessibility/.

About Oracle Oracle Corporation develops and markets an integrated line of software products for database management, applications development, decision support and office automation, as well as Oracle Applications. Oracle Applications provides the E–Business Suite, a fully integrated suite of more than 70 software modules for financial management, Internet procurement, business intelligence, supply chain management, manufacturing, project systems, human resources, and sales and service management.

Oracle products are available for mainframes, minicomputers, personal computers, network computers, and personal digital assistants, enabling organizations to integrate different computers, different operating systems, different networks, and even different database management systems, into a single, unified computing and information resource.

Oracle is the world’s leading supplier of software for information management, and the world’s second largest software company. Oracle offers its database, tools, and application products, along with related consulting, education and support services, in over 145 countries around the world.


Overview of New Features Oracle Projects 11i Mini-pack H includes the following features:

• Budgetary Controls

• Budget Integration

• Bottom-Up Budgeting

• Top-Down Budgeting

− Oracle General Ledger Integration

− Oracle Contract Commitments Integration

Budgetary Controls Budgetary Controls enable you to control project-related commitment transactions based on a project cost budget. When budgetary controls are enabled, available funds are verified before each commitment transaction is approved.

Budget Integration Oracle Projects budget integration features enable you to integrate project budgets with non-project budgets in Oracle General Ledger and Oracle Contract Commitments. Integration is defined in order to perform bottom-up or top-down budgeting.

Bottom-Up Budgeting Bottom-Up Budgeting enables you to create centralized organization-level budgets from defined project budgets. The organization-level budget amounts are an accumulation of project budget amounts and may also include budget amounts from other sources. Financial managers use the organization-level budgets to view budgeted figures for the organization as a whole, while project managers maintain independent budgets to monitor spending and revenue generation for each project.

Top-Down Budgeting Top-Down Budgeting enables financial managers to maintain centralized control of organization spending while still granting project managers flexibility in managing their individual projects. An organization-level budget defines overall spending limitations. Project budgets consume funds from the organization-level budget and are used to control spending for individual projects.


Top-Down Integration with Oracle Contract Commitments The Oracle Contract Commitments application enables organizations to manage their business using dual budgetary control. A commitment budget represents the amount of commitments an organization is willing to enter into over a given time period. A standard budget represents the amount an organization is willing to spend in a given time period.

For example, an organization commitment budget may allow $50,000 to be committed any time over the next five years, while the organization standard budget may restrict spending to $5,000 in the first year, $15,000 in the next year, and $10,000 for the following three years.

Oracle Projects now supports top-down budget integration with both the commitment budget and the standard budget.


Chapter 1: Budgetary Controls

This chapter describes the new budgetary controls features in Oracle Projects.


Budgetary Controls Overview In Oracle Projects, budgetary controls enable you to use a project cost budget to monitor and control project-related commitment transactions.

Prerequisites

To use budgetary control features in Oracle Projects, you must perform the following actions:

• You must enable budgetary controls and encumbrance accounting in Oracle General Ledger.

• You must enable encumbrance accounting in Oracle Payables.

• You must apply Oracle General Ledger patch numbers 1995914 and 2002508. For information on downloading and applying the General Ledger patches, refer to OracleMetalink.

Budgetary Controls Use

Oracle Projects budgetary controls enable you to monitor and control expense commitment transactions entered against a project. Expense commitment transactions are transactions for non-inventory items. Budgetary controls are enforced for:

• project-related purchase requisitions and purchase orders entered in Oracle Purchasing

• provisional and confirmed commitments entered in Oracle Contract Commitments

• supplier invoices entered in Oracle Payables

While Oracle Projects budgetary controls are enforced for supplier invoices entered in Oracle Payables, budgetary controls are not enforced for project-related expense reports entered in Payables. In most businesses, expense reports are entered after costs are already incurred. For example, an employee enters an expense report after returning from business travel. If the expenditure has already occurred, you must record the cost regardless of defined budgetary controls and available funds. Therefore, you should ensure that your user procedures for approving expense report expenditures include verification of available funds according to your business requirements.

Online Funds Checking

Funds checking is a feature of budgetary controls that helps you prevent overspending a budget by verifying available funds online before a transaction is processed. When budgetary controls are enabled for a project, a funds check is performed for all project-related expense commitment transactions. Once a transaction is approved, the funds check process immediately updates the funds available balances to account for the approved transaction.

The funds available for a transaction are calculated by subtracting the actual and commitment balances from the budget amounts for a given budget category. The funds check operation is based on the control levels and time intervals defined as part of the budgetary controls definition.


Budgetary Control Settings You use budgetary control settings to define the degree to which transactions are controlled and to determine when budget amounts can be consumed. These control settings include the following parameters:

• Time Intervals

• Control Levels

Time Intervals

A time interval defines the budget amounts and the transactions to be included in the available funds calculation. Time interval settings identify the beginning period and the ending period included in the calculation. An amount type identifies the beginning period and a boundary code identifies the ending period.

Available Funds Calculation The available funds calculation is based on the following variables:

• Amount Type (beginning budget period)

• Boundary Code (ending budget period)

• Transaction GL Date

The funds check process determines available funds by summing the budget amounts and subtracting actual and committed transaction amounts for a defined time interval.

The Amount Type defines the start of a time interval. Available options are:

• Period To Date: The funds check routine uses funds available from the start of the period in which the transaction GL date falls.

• Year To Date: The funds check routine uses funds available from the start of the year in which the transaction GL date falls.

• Project To Date: The funds check routine uses funds available from the start of the project.

The Boundary Code determines the end of a time interval. Available options are:

• Period: The funds check routine uses funds to the end of the period in which the transaction GL date falls.

• Year: The funds check routine uses funds to the end of the year in which the transaction GL date falls.

• Project: The funds check routine uses funds available to the end of the project.


Table 1-1 displays the valid combinations of amount types and boundary codes that you can use when budgeting by various time phases.

Table 1-1 Valid Amount Type and Boundary Code Combinations

Budget Time Phase Amount Type Boundary Code

GL/PA Periods or No Time Phase Project To Date Project

GL or PA Periods Project To Date Year

GL or PA Periods Project To Date Period

GL or PA Periods Year To Date Year

GL or PA Periods Year To Date Period

GL or PA Periods Period To Date Period

Note: When budgetary controls are enabled, you cannot enter budget amounts using user-defined date ranges.

Available Funds Calculation Examples The following tables show examples of funds check calculations for various combinations of amount type and boundary code definitions. The examples are based on the following conditions:

• A two-year project is defined with 24 periods.

• The GL periods and the PA periods are the same.

• One dollar is budgeted per period for the duration of the project.

The following attributes pertain to each table in the examples:

• The funds available row indicates the total budget amounts available for use in each period.

• The last row of each table shows the commitment transaction amount and the period in which the transaction occurs.

Table 1-2 shows an example of a funds check failure based on an amount type/boundary code combination of Project To Date/Project. The funds check failed because the sum of the budget, $24, from the project start to the project end, is less than the commitment transaction amount of $25.

Table 1-2 Funds Check Failure Using Amount Type/Boundary Code Parameters of Project To Date/Project

Details Year 1 Year 2

Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24

Transaction Amount 25


Table 1-3 shows an example of a successful funds check based on an amount type/boundary code combination of Project To Date/Project. The funds check was successful because the sum of the budget, $24, from the project start to the project end, is equal to or greater than the commitment transaction amount of $24.

Table 1-3 Successful Funds Check Using Amount Type/Boundary Code Parameters of Project To Date/Project


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24 24


Table 1-4 shows an example of a funds check failure based on an amount type/boundary code combination of Project To Date/Year. The funds check failed because the sum of the budget, $12, from the project start to the fiscal year end in which the commitment transaction occurs, is less than the transaction amount of $24.

Table 1-4 Funds Check Failure Using Amount Type/Boundary Code Parameters of Project To Date/Year


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 12 12 12 12 12 12 12 12 12 12 12 12 24 24 24 24 24 24 24 24 24 24 24 24


Table 1-5 shows an example of a successful funds check based on an amount type/boundary code combination of Project To Date/Year. The funds check was successful because the sum of the budget, $24, from the project start to the fiscal year end in which the commitment transaction occurs, is equal to or greater than the transaction amount of $24.

Table 1-5 Successful Funds Check Using Amount Type/Boundary Code Parameters of Project To Date/Year


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 12 12 12 12 12 12 12 12 12 12 12 12 24 24 24 24 24 24 24 24 24 24 24 24



Table 1-6 shows an example of a funds check failure based on an amount type/boundary code combination of Project To Date/Period. The funds check failed because the sum of the budget, $23, from the project start to the period end in which the commitment transaction occurs, is less than the transaction amount of $24.

Table 1-6 Funds Check Failure Using Amount Type/Boundary Code Parameters of Project To Date/Period


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24


Table 1-7 shows an example of a successful funds check based on an amount type/boundary code combination of Project To Date/Period. The funds check was successful because the sum of the budget, $24, from the project start to the period end in which the commitment transaction occurs, is equal to or greater than the transaction amount of $24.

Table 1-7 Successful Funds Check Using Amount Type/Boundary Code Parameters of Project To Date/Period


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24


Table 1-8 shows an example of a funds check failure based on an amount type/boundary code combination of Year To Date/Year. The funds check failed because the sum of the budget, $12, from the fiscal year start to the fiscal year end in which the commitment transaction occurs, is less than the transaction amount of $13.

Table 1-8 Funds Check Failure Using Amount Type/Boundary Code Parameters of Year To Date/Year


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12



Table 1-9 shows an example of a successful funds check based on an amount type/boundary code combination of Year To Date/Year. The funds check was successful because the sum of the budget, $12, from the fiscal year start to the fiscal year end in which the commitment transaction occurs, is equal to or greater than the transaction amount of $12.

Table 1-9 Successful Funds Check Using Amount Type/Boundary Code Parameters of Year To Date/Year


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12


Table 1-10 shows an example of a funds check failure based on an amount type/boundary code combination of Year To Date/Period. The funds check failed because the sum of the budget, $11, from the fiscal year start to the period end in which the commitment transaction occurs, is less than the transaction amount of $12.

Table 1-10 Funds Check Failure Using Amount Type/Boundary Code Parameters of Year To Date/Period


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12


Table 1-11 shows an example of a successful funds check based on an amount type/boundary code combination of Year To Date/Period. The funds check was successful because the sum of the budget, $11, from the fiscal year start to the period end in which the commitment transaction occurs, is equal to or greater than the transaction amount of $10.

Table 1-11 Successful Funds Check Using Amount Type/Boundary Code Parameters of Year To Date/Period


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12



Table 1-12 shows an example of a funds check failure based on an amount type/boundary code combination of Period To Date/Period. The funds check failed because the sum of the budget, $1, from the period start to the period end in which the commitment transaction occurs, is less than the transaction amount of $2.

Table 1-12 Funds Check Failure Using Amount Type/Boundary Code Parameters of Period To Date/Period


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


Table 1-13 shows an example of a successful funds check based on an amount type/boundary code combination of Period To Date/Period. The funds check was successful because the sum of the budget, $1, from the period start to the period end in which the commitment transaction occurs, is equal to or greater than the transaction amount of $1.

Table 1-13 Successful Funds Check Using Amount Type/Boundary Code Parameters of Period To Date/Period


Period 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Budget Amount 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Funds Available 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1



Control Levels

Budgetary control level settings define the degree of control imposed on project commitment transactions. You can enter default control level settings for project types, project templates, and projects. You can also define default values for resource lists.

The available control levels are:

• Absolute: The transaction is rejected if sufficient funds are not available.

• Advisory: The transaction is accepted when sufficient funds are not available, but a warning notification is given that available funds are exceeded.

• None: The transaction is accepted and no funds check is performed.

Oracle Projects supports multiple control level settings. You can define values for each of the following project budget levels:

• Project

• Task

• Resource Group

• Resource

Different values can be entered at each level. For example, you can select the Absolute setting at the project level and the Advisory setting at the resource level.

Depending on the budget entry method used, you can override the default control level settings for a project, and for individual tasks, resource groups, and resources after a project cost budget is defined and baselined. Table 1-14 displays the control levels available when budgets are created using each level of budget entry.

Table 1-14 Availability of Control Levels by Budget Entry Level

Budget Entry Level Categorized by Resources

Project Level Task Level

Resource Group Level

Resource Level

Project Yes Available Unavailable Available Available

Project No Available Unavailable Unavailable Unavailable

Top Task Yes Available Available Available Available

Top Task No Available Available Unavailable Unavailable

Lowest Task Yes Available Available Available Available

Lowest Task No Available Available Unavailable Unavailable

Top and Lowest Task Yes Available Available Available Available

Top and Lowest Task No Available Available Unavailable Unavailable


Control Level Settings and Funds Check Rollup When control levels are either Absolute or Advisory, the funds check process first tests the lowest budget level to determine the availability of funds. If funds are available for a transaction at the lowest level, the funds check tests the next level in the budgetary control hierarchy. The process continues until the transaction passes all levels or fails at any one level. If a transaction fails funds check at a level with a control level of Absolute, the process is discontinued. However, if the control level is Advisory, an insufficient funds warning notification is generated and the funds check process continues to the next level.

The hierarchical succession of rollup levels, from lowest to highest level, is as follows:

1. Resource

2. Resource Group

3. Lowest Task

4. Top Task

5. Project

Note: Middle-level tasks are not included in the rollup succession.


Funds Check Budget Rollup Example Figure 1-1 illustrates an example of a funds check rollup that reflects budget amounts at all budget levels including resource, resource group, lowest task, top task, and project.

Figure 1-1 Funds Check Rollup Levels

At the resource level, the available funds for resources are rolled up into the available funds for the resource groups. The available funds for the resource groups roll up into the available funds for the lowest tasks. The available funds for the lowest tasks then roll up into the available funds for the top tasks. Finally, the available funds for the top tasks roll up into the available funds for the project.

For example, as illustrated for Top Task 1, Resource A1 and Resource A2 each have total available funds of $10. Combined, the total funds of Resource A1 and A2 roll up into the available funds of $20 for Resource Group A. The total available funds of Resource Group A and Resource Group B roll up into the available funds for Lowest Task 1.1, which equals $40. The total available funds of Lowest Task 1.1 plus Lowest Task 1.2 roll up into the available funds for Top Task 1, which equals $80. The total available funds of Top Task 1, $80, plus the total available funds of Top Task 2, $40, roll up into the available funds for Project 1, which equals $120.


Resource Level Rollup Example Table 1-15 shows two examples of resource level rollups.

Transaction 1 for $15, charged against Resource A1 with a total budget of $10, is funds checked with a budgetary control setting of Advisory. The transaction passes with an advisory notice and is rolled up to Resource Group A. At the Resource Group A level, Transaction 1 passes the funds check, as Resource Group A has a budgetary control setting of Absolute and a total budget of $20.

Since Transaction 1 passes funds check, the available funds for Resource A1 is updated to ($5). The available funds for Resource A2 remains $10. The rolled up available funds for Resource Group A is updated to $5.

Transaction 2 for $10, charged against Resource A2 with a total budget of $10, is funds checked with a budgetary control setting of Advisory. Transaction 2 passes funds check without an advisory notice. However, Transaction 2 fails the funds check when it is rolled up to the Resource Group A level because the available funds of $5, after Transaction 1, are insufficient to cover the $10 transaction.

Due to the budgetary control settings, Transaction 1 used a portion of the defined budget amounts for Resource A2.

Table 1-15 Funds Check Rollup Example, Resource Level

Details Resource A1 Resource A2Resource

Funds Check Result

Resource Group A

Resource Group Funds Check Result

Budgetary Control Setting Advisory Advisory Absolute

Total Budget $10 $10 $20

Transaction 1 $15 Passed with

Advisory Warning

$15 Passed

Available Funds ($5) $10 $5

Transaction 2 $10 Passed $10 Failed


Task Level Rollup Example Table 1-16 shows two examples of task level rollups.

Transaction 1 for $45, charged against Lowest Task 1.1 with a total budget of $40, is funds checked with a budgetary control setting of Advisory. The transaction passes with an advisory notice and is rolled up to Top Task 1. At the Top Task 1 level, Transaction 1 passes funds check as Top Task 1 has a budgetary control setting of Absolute and a total budget of $80.

Since Transaction 1 passes the funds check, the available funds for Lowest Task 1.1 is updated to ($5). The available funds for Lowest Task 1.2 remains $40. The rolled up available funds for Top Task 1 is updated to $35.

Transaction 2 for $40, charged against Lowest Task 1.2 with a total budget of $40, is funds checked with a budgetary control setting of Advisory. Transaction 2 passes funds check without an advisory notice. However, Transaction 2 fails the funds check when it is rolled up to the Top Task 1 level because the available funds of $35, after Transaction 1, are insufficient to cover the $40 cost.

Due to the budgetary control settings, Transaction 1 used a portion of the defined budget amounts for Lowest Task 1.2.

Table 1-16 Funds Check Rollup Example, Task Level

Details Lowest Task 1.1

Lowest Task 1.2

Lowest Task Funds Check

Result Top Task 1

Top Task Funds Check

Result

Budgetary Control Setting Advisory Advisory Absolute

Total Budget $40 $40 $80

Transaction 1 $45 Passed with

Advisory Warning

$45 Passed

Available Funds ($5) $40 $35

Transaction 2 $40 Passed $40 Failed


Budget Amount Entry When you enter budget amounts for budgets that have budgetary controls enabled, additional consideration is required when your budget entry method uses a resource list and when burdening is enabled for your project.

Budget Amounts for Resources

If the budgetary control level for resources or resource groups is Absolute or Advisory, and no budget amount is entered for a particular resource or resource group, then Oracle Projects treats the entered budget amount as zero. This causes transactions mapping to resources with no budget amounts to fail the funds check at an Absolute level and to pass the funds check with a warning at an Advisory level.

A new Unclassified budget entry category is now available at each resource list level. This category allows you to enter one budget amount for a group of resources. You can selectively control costs for some resources within a resource group by entering specific budget amounts for those resources. You can then use the Unclassified category to budget for the remaining resources within the resource group.

The Unclassified category serves as a budget line for any resource for which a budget line does not specifically exist.


Burden Cost Amounts

If burdening is enabled for your project, then all funds checks are performed using the transaction burdened cost. Oracle Projects provides the following methods of accounting for burden costs:

• Same Expenditure Item

• Separate Expenditure Item

For more information on accounting for burden costs, see: Oracle Projects User Guide.

Same Expenditure Item When you account for burden cost on the same expenditure item as raw costs, the funds check process calculates the burden cost amounts for a transaction and adds them to the raw cost amount. The process then maps the burdened transaction amount to a budget line and performs the necessary funds checks.

Therefore, when you use this method of accounting for burden costs, enter budget amounts for the burdened transaction costs.


Separate Expenditure Item When you account for burden costs as separate expenditure items, the funds check process calculates the burden cost amounts for each burden cost component and separately maps each burden amount and the raw cost amount to a budget line. Individual funds checks are performed for each component. If any component fails the funds check, then the entire transaction is rejected.

When you use this method of accounting for burden costs and you are not using a resource list for budget entry, enter budget amounts for the burdened transaction costs. The burden costs and the raw cost are mapped to budget lines using the same mapping rules and are therefore mapped to the same line.

When you use this burden accounting method and you are budgeting using a resource list, the burden costs are not mapped using the resource for the raw cost. You must ensure that each burden cost component maps to a budget line with the desired budgetary control setting. To do this, define your burden cost components as resources on your resource list and then use these resources to enter budget amounts for burden costs. This allows you to enter a budgetary control setting for each burden cost component and a control setting for budget lines defined for raw costs. If you do not wish to impose budgetary controls on burden cost amounts, you can assign a control setting of None for all budget lines for burden component resources.


An alternative to defining resources on your resource list for burden cost components is to use the Unclassified budget entry category to budget for burden cost amounts. If a budget line cannot be found for the burden cost components and an Unclassified budget line exists, then the funds check process maps the burden costs to the Unclassified line. See: Budget Amounts for Resources on page 24 for more information on using unclassified budget entry categories.


Budget Definition Strategies Oracle Projects budgetary controls only apply to expense commitment transactions. Budgetary controls do not apply to other project-related transactions such as timecards, expense reports, or inventory item purchases. Therefore, when you enable budgetary controls for a project, it is recommended that you use one of the following strategies for defining cost budget amounts:

• Strategy One: Define Two Budgets. Define a budget for expense commitment transactions using a user-defined cost budget type. Define an overall project cost budget using the seeded Approved Cost Budget type.

• Strategy Two: Define One Cost Budget. Define one overall project cost budget. Include budget lines that only track and control expense commitment transactions.

Strategy One: Define Two Budgets

This strategy for implementing budgetary controls uses a separate commitment cost budget in addition to an overall cost budget. The overall cost budget tracks all project costs. The commitment cost budget tracks and controls the project’s expense commitment transactions. The commitment cost budget amounts are a subset of the budget amounts defined for the overall cost budget.

Typically, the seeded Approved Cost Budget type is used to define an overall cost budget. It is recommended that you create a new user-defined budget type for the commitment budget. When enabling budgetary controls for your project, use the user-defined budget type. Do not enable budgetary controls for the Approved Cost Budget type.

Strategy Two: Define One Cost Budget

The second approach for implementing budgetary controls uses one cost budget for all anticipated project costs. The budget includes separate budget lines for expense commitment transactions and all other anticipated project costs.

Typically, the seeded Approved Cost Budget type is used to define a project’s overall cost budget. Therefore, when defining a project, enable budgetary controls using this budget type. Once the budget is successfully baselined, you must ensure that budgetary control settings are properly defined for all budget lines entered for your expense commitment transactions. It is recommended that a control setting of None be entered for all other budget lines. This helps reduce confusion as funds checks are not performed for transactions mapping to these lines.


Budget Strategy Examples

To enhance your understanding of the recommended budgeting strategies when using budgetary controls, the following examples are provided using Fremont Corporation, a fictitious engineering, construction, and consulting firm. Setup steps performed during implementation that apply to budget entry are described, and an example of the use of each budget definition strategy is provided.

Note: The Fremont Corporation is introduced and used in the Oracle Projects User Guide to illustrate setup and implementation examples. For more information about Fremont Corporation and their implementation of Oracle Projects, refer to the Oracle Projects User Guide.

Fremont Corporation – Implementation Steps User-Defined Budget Type

Fremont Corporation defines a budget type to track and control expense transactions. In addition to entering a budget for overall project costs, project managers can enter a commitment budget for project commitment transactions.

Budget Type Name Amount Type

Commitment Budget Cost Budget

Budget Entry Method

Fremont Corporation defines the following budget entry method for use with projects with budgetary controls enabled:

Budget Entry Method Attribute

Budget Entry Method Attribute Value

Name Project by GL Period/Category

Entry Level Project

Categorized by Resource Yes

Time Phases by GL Period

Cost Enterable Fields Burdened Cost

Revenue Enterable Fields None


Resource Lists

Fremont Corporation uses many resource lists. The resource lists shown below are used frequently for budget entry when budgetary controls are enabled for a project:

Resource List: Four Category Cost List Group Resources By: Expenditure Category

Resource Group Alias Order

Labor Labor 1

Material Material 2

Travel Travel 3

Expenses Expenses 4

Resource List: Commitment Resources Group Resources By: Expenditure Category

Resource Groups:

Resource Groups Alias Order

Contractor Contractor 1

Expenses Expenses 2

Resources:

Resource Type Resource Alias Order

Supplier Capp Consulting Capp Consulting 1

Supplier GE Plastics GE Plastics 2

Supplier Allied Manufacturing Allied Manufacturing 3

Expenditure Type Consulting Consulting 4

Expenditure Type Supplies Supplies 5


Fremont Corporation Strategy One Example Mr. Smith, a Fremont Corporation project manager, is the project manager for Project A. He uses the Four Category Cost List to group all project costs for planning and tracking purposes:

• Labor: Employee labor costs

• Material: Inventory item costs (purchased for the project or issued to the project from inventory stocks)

• Travel: Business travel costs

• Expenses: All non-inventory item purchases, miscellaneous expenses, and consulting labor

Mr. Smith submits the following Approved Cost Budget to Fremont’s financial managers for approval of the anticipated costs of Project A:

Project A Approved Cost Budget

Resource Budget Amount

Labor 150,000

Material 150,000

Expenses 50,000

Travel 25,000

The financial managers approve the budget, but inform Mr. Smith that he must ensure that the project’s expense transactions do not exceed the approved $50,000 budget amount.

Therefore, Mr. Smith enables budgetary controls for Project A using the Commitment Budget Type. He then defines an additional budget using the Commitment Budget Type for controlling the expense costs for the project. He decides to allocate $40,000 of the budgeted $50,000 to consulting resources and only $10,000 for other miscellaneous expenses.

Project A Commitment Budget

Resource Group Resources Budget Amount

Contractor Capp Consulting 15,000

Contractor Consulting 25,000

Expenses 10,000

Mr. Smith enters a specific budget amount for Capp Consulting because he wants to use their resources on a limited basis. He believes their consulting rates are considerably higher than average market rates. However, they have expertise that is needed for Project A. Mr. Smith plans to monitor the use of their services closely and scrutinize expenses carefully if their expense total exceeds the budgeted amount.


To prevent overspending for the approved $50,000 commitment cost budget, Mr. Smith defines Absolute budgetary control settings for each resource group. He defines Advisory budgetary control settings for the Capp Consulting budget line and advises his purchasing and accounts payable clerks to notify him if any purchasing transaction or supplier invoice generates a funds check warning.


Fremont Corporation Strategy Two Example Mr. Turner, another Fremont Corporation project manager, is the project manager for Project B. He uses the Four Category Cost List to group all project costs for planning and tracking purposes:

• Labor: Employee labor costs

• Material: Inventory item costs (purchased for the project or issued to the project from inventory stocks)

• Travel: Business travel costs

• Expenses: All non-inventory item purchases, miscellaneous expenses, and consulting labor

Before changing the project status to Approved, Mr. Turner submits the following Approved Cost Budget to Fremont’s financial managers for approval of the anticipated costs of Project B:

Project B Approved Cost Budget

Resource Group Resource Budget Amount

Labor 150,000

Material 150,000

Travel 25,000

Expenses Capp Consulting 15,000

Expenses Unclassified 25,000

Expenses Supplies 10,000

Mr. Turner enters a specific budget amount for Capp Consulting because he too wants to use their resources on a limited basis. He also believes their consulting rates are considerably higher than average market rates. However, they have expertise that is needed on Project B. Mr. Turner plans to monitor the use of their services closely and scrutinize expenses carefully if their expense total exceeds the budgeted amount.

Fremont’s financial managers approve the budget submitted by Mr. Turner. However, they advise him that he must ensure that the project’s expense type transactions do not exceed the approved $50,000 budget amount.

Before baselining the approved budget for Project B, Mr. Turner enables budgetary controls for the project using the Approved Cost Budget Type. He plans to use budgetary controls to ensure that the project’s expense type transactions do not exceed the approved amount. When defining budgetary controls, Mr. Turner enters a control level of None for the Project, Task, Resource Group, and Resource levels.


He then baselines the project’s Approved Cost Budget and modifies the control level for the Expenses Resource Group. He changes the value from None to Absolute to reject commitment transactions if the budgeted amount is exceeded. He also changes the control level for the Capp Consulting resource from None to Advisory. This will cause a notification to be generated if the Capp Consulting budget amount is exceeded. Mr. Turner advises his purchasing and payables clerks to notify him if any transaction generates an Advisory funds check notification.


Transaction Processing When a transaction is charged to a project, the funds check processes are activated in both Oracle General Ledger and Oracle Projects. Funds checks are activated for new transactions and for adjusted transactions. You can review Oracle Project funds check results online. Results are displayed for transactions that pass the funds check and for transactions that fail the funds check.

Funds Check Activation In Oracle Purchasing and Oracle Payables

In Oracle Purchasing and Oracle Payables, funds check processes are activated when you select the check funds option for a transaction, and also during the transaction approval process. When the check funds option is selected, a funds check is performed, but a successful result does not update budgetary control balances. You can use this option to verify available funds for a transaction before requesting approval for the transaction. During the transaction approval processes, a funds check is automatically performed. If the funds check is successful, the transaction is approved and budgetary control balances are updated.

Funds Check Activation in Oracle Projects

In Oracle Projects, budgetary controls only apply to expense commitment transactions. Project-related commitment transactions are interfaced to Oracle Projects from Oracle Payables as supplier invoices.

After supplier invoices are interfaced to Oracle Projects, you can adjust the expenditure items in Oracle Projects. The following adjustment types can affect a project’s available funds:

• Recosting: You recost an item after changing cost rates or burden schedules.

• Splitting and Transferring: You can transfer expenditure items from one task to another, or from one project and task to another project and task. You can transfer the entire expenditure item or split the item in order to transfer a portion of the cost.

• Reversing: You can reverse expenditure items to remove costs from a project.

The PRC: Distribute Supplier Invoice Adjustments process is used to recost supplier invoices after adjustments are entered. This process performs a funds check for transactions meeting all of the following criteria:

• The supplier invoice originated in Oracle Payables.

• The transaction is charged to a project with budgetary controls enabled.

• The transaction is an expense-type item.

If funds are available for the adjusted expenditure amounts, then the adjustment item is cost distributed. If funds are not available for an item, then the item is not distributed and an exception is reported.


If an item is not cost distributed as a result of a funds check failure, then you must perform one of the following actions and rerun the PRC: Distribute Supplier Invoice Adjustments process:

• Increase budget amounts so funds are available for the expenditure item.

• Decrease the budgetary control level from Absolute to Advisory or None for the budget level causing the funds check failure.

• For a recosted item, undo the change that increased the expenditure item amount. For example, if you increased a burden cost rate, then set the rate back to its original value.

• For a transferred item, re-transfer the item to a task or a project and task that has sufficient funds available or that does not have budgetary controls enabled.

Viewing Transaction Funds Check Results

After a funds check is initiated from any activation point, you can view the Oracle Projects funds check results from the Transaction Funds Check Results window. Results are displayed for transactions that passed the funds check and for transactions that failed the funds check.

The upper (header) region of the Transaction Funds Check Results window displays transactions that have undergone a funds check. The lower (tabbed) region displays funds check amount details and status information by budget level for a selected transaction. A tab is displayed for each project budget level, which can include the following: project, top task, task, resource group, and resource. The information displayed for each budget level tab includes budget, available funds, and transaction amounts, and a status message for the funds check results. You can view results for each transaction at each budget level by selecting the appropriate budget level tab.

Note: The PA: Days to Maintain BC Packets profile option determines how long funds check results are retained for online viewing. See: Defining Profile Options for Budgetary Controls on page 46 for more information.


Transaction Funds Check Results Window

��To review transaction funds check results: 1. Navigate to the Find Transaction Funds Check Results window:

Expenditures > Transaction Funds Check Results

2. Enter your selection criteria.

3. Choose the Find button to display the Transaction Funds Check Results window.

4. Select a budget level tab to view information for a specified budget level.


Table 1-17 contains a description of each field in the header region of the Transaction Funds Check Results window. All fields are for display only.

Table 1-17 Transaction Funds Check Results Window Header Region Fields

Field Name Description

Project Project

Top Task Top task

Task Task

Resource Group Resource group

Resource Resource

Expend Organization Expenditure organization

Expenditure Category Expenditure category

Expenditure Type Expenditure type

Expenditure Date Expenditure date

G/L Date G/L date associated with the transaction

Packet ID Identifier assigned to the budgetary control packet

Status Funds check status

Source Source of the commitment transaction

Document Type Type of document (for example, purchase requisition)

Amount Transaction amount

Version Number Budget version number

Budget Version Budget version name

Budget Type Budget type

Budget Status Budget status

Source Document Source document reference (for example, PO number)


Table 1-18 contains a description of the fields in each tabbed region of the Transaction Funds Check Results window. All fields are for display only.

Table 1-18 Transaction Funds Check Results Window Tabbed Region Fields


Account Identifies the account when budget integration is used

Budget Budget amount total used for funds check based on the defined budgetary control time interval

Actuals Commitment transactions interfaced to Projects

Commitments Approved commitment transactions not yet interfaced to Projects

Available Balance Available funds prior to the funds check for the selected transaction

Transaction Amount Amount of the selected transaction

New Available Balance Available balance after the funds check for the selected transaction

Funds Check Results Funds check status information


Maintaining Budgetary Control Balances For all projects using budgetary controls, Oracle Projects maintains budgetary control balances. For each budget line, the budget amount, the commitment transactions total, and the total actuals relating to commitment transactions are maintained. The system also calculates available funds for each budget category and budget period.

Initial balances are created when the original budget version is baselined. The PRC: Maintain Budgetary Control Balances process updates the balances as transactions are processed. The updated balances are displayed in the Budget Funds Check Results window. It is recommended that you use the scheduling options to run the Maintain Budgetary Control Balances process regularly. Schedule the process according to the number of project-related commitments created each day and your online inquiry business needs.

Viewing Budgetary Control Balances

Use the Budget Funds Check Results window to view budgetary control balances online. This window displays budget, actuals, commitments, and available funds balances for each budget level. A tab is displayed for each project budget level, which can include the following: project, top task, task, resource group, and resource. The window can be used to review project-to-date transactions and to plan future expenditures. The information in this window can also be used in addition to the Transaction Funds Check Results window to troubleshoot transaction funds check failures.

Budget Funds Check Results Window

Choose the Commitments button to display the commitments total summarized by commitment type for a selected line.


Commitment Amounts Window

��To review commitment amounts by commitment type: 1. Navigate to the Budgets window from the Projects Navigator.

2. Query the project cost budget.

3. Choose the History button to view the budget version history.

4. Select View Funds Check Results from the Tools menu.

5. Select a budget level tab to view budget lines for a specified budget level.

6. Choose the Commitments button to view the commitment details for a selected line.


Table 1-19 contains a description of each field in the header region of the Budget Funds Check Results window. All fields are for display only.

Table 1-19 Budget Funds Check Results Window Header Region Fields


Project Number Project

Project Name Project name

Budget Type Budget type

Budget Status Budget status

Budget Version Budget version name

Table 1-20 contains a description of the fields in each tabbed region of the Budget Funds Check Results window. All fields are for display only.

Table 1-20 Budget Funds Check Results Window Tabbed Region Fields


Control Level Budgetary control level for a budget line

Budget Budget amount for a budget line

Actuals Commitment transactions interfaced to Projects

Commitments Approved commitment transactions not yet interfaced to Projects

Funds Available Available funds (budget amount less actuals and commitments) based on the defined time interval

Start Date Beginning period date for amounts in a budget line

End Date Ending period date for amounts in a budget line

Result Reserved for future use.

Table 1-21 contains a description of each field in the Commitment Amounts window. All fields are for display only.

Table 1-21 Commitment Amounts Window Fields


Requisition Amount of purchase requisition commitments recorded against a budget line

Purchase Order Amount of purchase order commitments recorded against a budget line

Supplier Invoice Amount of supplier invoices recorded against a budget line that have not been interfaced from Oracle Payables to Projects

Total Total commitments for a budget line


Modifying Budget Amounts

When you modify a project budget, budgetary control balances are created for the new budget version. During the baseline process, all existing project transactions are mapped to a budget line in the new version. A funds check is performed for all transactions subject to budgetary controls to ensure that transaction totals do not exceed available funds calculated using the new budget amounts. The baseline process fails if the budget amounts for the new budget version cause a budgetary control violation.

To identify the cause of a failure, query the draft budget version using the Budget Funds Check Results window. Any budget line with a negative amount in Funds Available and an Absolute control level causes a baseline failure.


Budgetary Controls Cross Charge Restriction A transaction is subject to only the budgetary controls defined for the set of books in which the transaction originates. Therefore, when budgetary controls are enabled for a project, cross charge transactions that cross sets of books are not allowed.

The following scenario explains the need for this restriction:

Assume two sets of books are defined in an installation of Oracle Applications. In Set of Books One (SOB1), budgetary controls are enabled in Oracle General Ledger and Oracle Payables. In Set of Books Two (SOB2), budgetary controls are not enabled in any application. Project A is defined in SOB1 and budgetary controls are enabled for the project. If a Project A-related commitment transaction is entered in SOB2, it is not funds checked since budgetary controls are not enabled in SOB2.


Projects Budgetary Controls Implementation Steps To enable budgetary controls, perform the following steps:

1. Define budgetary control profile options:

• PA: Enable Budget Integration and Budgetary Control Feature

• PA: Days to Maintain BC Packets

2. Define default budgetary control levels and the budgetary control time interval.

3. Create and baseline a project cost budget.

4. Adjust default control levels for your budget line details.


Defining Profile Options for Budgetary Controls

You must define the following new profile options when budgetary controls are enabled:

• PA: Enable Budget Integration and Budgetary Control Feature: This profile option can be set at either the site or application level. It controls the activation of budgetary controls windows and processes. The default value is N (no).

Attention: You must set this value to Y (yes) to enable the Oracle Projects budgetary controls and budget integration features.

• PA: Days to Maintain BC Packets: This profile option is specified at the site level. It specifies the number of days transaction funds check results are maintained. The default value is 3.

Attention: Increasing this value may slow the performance of the funds check process.


Defining Control Levels and the Time Interval

You can define budgetary controls for project types, project templates, and projects. Values that you define for a project type are the default values for project templates. Values that you define for project templates are the default values for projects. When you define a project type, you indicate whether or not the default values for budgetary controls can be changed at the project level.

Note: The default control level values defined for a project can be changed for the project, and for individual tasks, resource groups, and resources after a project budget is baselined. See Adjusting Default Control Levels on page 52 for more information.

Project Types Window

��To specify budgetary controls for a project type: 1. Navigate to the Budgetary Control tab for a project type.

2. Check the Allow Override at Project Level check box if you want to allow users to modify the default budgetary control settings at the project level. If the check box is not checked, the values for the project type will default to the project template and project and cannot be changed.

3. Select a project cost budget type. Budgetary controls can be enabled for cost budget types only.

4. Check the Control Flag. Budgetary controls can be enabled for only one budget type per project.

5. Select a default control level for each budget level. Select the Default from Resource List value for Resource Groups and Resources if you have defined default control levels for your resource list.

6. Select an amount type and boundary code.

7. Save your work.


Note: The Balance Type, Non-Project Budget, and Encumbrance Type fields are used to define top-down and bottom-up budget integration. See chapters 3 through 5 for more information.

Projects, Templates Budgetary Control Option Window

��To specify budgetary controls for a project or project template: 1. Select the Budgetary Control option from the Projects, Templates window.

2. Select a project cost budget type. Budgetary controls can be enabled for cost budget types only.

3. Check the Control Flag. Budgetary controls can be enabled for only one budget type per project.

4. Select a default control level for each budget level. Select the Default from Resource List value for Resource Groups and Resources if you have defined default control levels for your resource list.

5. Select an amount type and boundary code.

6. Save your work.

Note: You cannot enable budgetary controls for a project budget if the project budget has been baselined, or if transactions have been entered against the project budget. Also, the Balance Type, Non-Project Budget, and Encumbrance Type fields are used to define Top-Down and Bottom-Up budget integration. See chapters 3 through 5 for more information.

Note: If entry is not allowed, verify that the project type budgetary controls settings allow override.


Defining Control Level Defaults for Resource Groups and Resources You can define control level defaults for resource groups and resources using the Resource Lists definition window. This allows you to specify a default for each resource group and if necessary, each resource within the group.

Resource List Default Usage

Define budgetary control defaults for your resource lists if you want to impose different levels of control on your project resources. The control level defined for the resource group is the default value for all resources assigned to the group. However, this default value can be changed for individual resources. Table 1-22 shows an example of default control level settings defined for resource groups and resources.

Table 1-22 Default Control Level Settings for Resource Groups and Resources

Resource Group Resource Control Level

Suppliers Absolute

Capp Consulting Absolute

Consolidated Construction Absolute

Turner Enterprises None

Employees Advisory

Marlin, Ms. Amy Advisory

Gray, Mr. Dick Absolute


Resource Lists Window

��To specify control level defaults for a resource list: 1. Navigate to the Resource Lists window.

2. Select values for each resource group.

3. Optionally, select values for individual resources.

4. Save your work.


Creating and Baselining an Initial Budget

When budgetary controls are enabled for a project, you must create and baseline your project cost budget before commitment transactions are entered. If a baselined project budget does not exist when commitment transactions are entered, then Oracle Projects does not enforce budgetary controls when the commitment transactions are approved.

Note: When you use budgetary controls in Projects, the budget entry method you specify for your project cost budget must allow the entry of burdened cost amounts. Oracle Projects uses burdened cost amounts to enforce budgetary controls. If you enter only raw cost amounts for a project budget with a budget entry method that allows the entry of burdened cost amounts, then the system automatically copies the raw cost amounts to the burdened cost fields. Projects will then use these amounts to enforce budgetary controls for your project. If the budget entry method you specify for your project budget does not allow the entry of burdened cost amounts, then the raw cost amounts are not copied to the burdened cost fields. In this case, your burdened cost amounts will be zero, which will cause your commitment transactions to fail funds check during approval.

When budgetary controls are enabled for a budget type, the baselining process uses a deferred workflow. The functions performed by the deferred workflow vary depending on whether you use workflow to control budget status changes.

If you do not use workflow to control budget status changes, the deferred workflow process performs the following actions:

• changes the budget version status to In Progress

• creates/maintains budgetary control balances

• creates a baselined budget version

• sends a workflow notification to the user when the baseline process is complete

If you use workflow to control budget status changes, the deferred workflow process performs the following actions:

• changes the budget version status to In Progress

• creates/maintains budgetary control balances

• initiates the budget status change workflow process


Adjusting Default Control Levels

When you baseline a project budget, default budgetary control level settings are created for each budget level. You can override the default control level values for the baselined budget version using the Budgetary Control option from the Tools menu.

Budgetary Control Window

��To adjust budgetary control levels: 1. Navigate to the Budgets window from the Projects Navigator.

2. Query your project cost budget.


4. Select Budgetary Controls from the Tools menu.

5. Change control level values as required.

6. Save your work.


If you are budgeting using a resource list, choose the Resources button on the Budgetary Control window to override the default values for resource groups and resources.

Budgetary Control – Resources Window

��To adjust budgetary control levels for resources: 1. Navigate to the Budgets window from the Projects Navigator.

2. Query your project cost budget.


4. Select Budgetary Controls from the Tools menu.

5. Change control level values as required at the project and task level.

6. Choose the Resources button.

7. Change control level values as required for resource groups and resources.

8. Save your work.



Chapter 2: Budget Integration

This chapter describes the new budget integration features in Oracle Projects.


Budget Integration Overview Oracle Projects budget integration features enable you to integrate project budgets with non-project budgets. A non-project budget is a budget defined outside Oracle Projects. You define budget integration to perform bottom-up or top-down budgeting.

Bottom-Up Budget Integration

When enterprises use bottom-up budgeting, they build organization-level budgets by consolidating budget amounts from lower-level sources. A project budget can be consolidated automatically by defining budget integration for the project.

When bottom-up budget integration is defined in Oracle Projects, project budget amounts are interfaced to Oracle General Ledger. In General Ledger, the interfaced amounts are added to the budget balances created from other sources. The consolidated amounts represent organization-level balances.

Top-Down Budget Integration

When enterprises use top-down budgeting, top management establishes spending limits for each organization. Budgetary controls enforce the defined limits and encumbrance accounting creates reservations for planned expenditures.

When top-down budget integration is defined in Oracle Projects, reservations are created against funding budgets for the anticipated cost of approved projects. These reservations ensure that funds will be available when project costs are incurred, and provide a more complete picture of funds available for future use. At any time, managers can view the defined spending limits, the costs of their recorded expenditures, the anticipated costs of their planned expenditures and approved projects, and the remaining funds for future projects and future purchases.


Integration Procedures The procedures for defining and using bottom-up budget integration and top-down budget integration differ. These procedures are discussed in detail in the following chapters.

All integrated project budgets, (bottom-up and top-down) use General Ledger accounts to interface project budget amounts to Oracle General Ledger. This chapter describes the procedures for generating accounts for project budget lines.

Account Generation Overview

In this release, Oracle Projects budget integration only supports integration with non-project budgets defined in Oracle General Ledger. Oracle General Ledger budgets are defined at the account level, and budget amounts are entered for an account and a GL period. Therefore, when a project budget is integrated with a GL budget, an account must be assigned to each project budget line. These accounts are used to interface the project budget amounts to General Ledger.


Project Budget Account Workflow

The Project Budget Account workflow enables you to automate the account generation and assignment process. You must customize the Project Budget Account workflow to generate accounts based on your business needs. Oracle Projects provides predefined parameters to ease the customization process. You can use these parameters to derive accounts based on project organizations, expenditure organizations, and tasks, or based on the resource groups and resources used for budget entry. Many other parameters are also available. Refer to Appendix A for a complete list.

The Project Budget Account workflow is illustrated in Figure 2-1. When you customize this workflow, you must maintain the basic workflow tree structure. Do not delete a node or change the node order. (A node is a point in the tree structure where two or more lines meet.) To customize the workflow process, replace the dummy activity in Node 2 with your defined procedure for account generation. For more information about customizing Account Generator workflows, see the Oracle Applications Flexfields Guide.

Figure 2-1 Project Budget Account Workflow


Account Generation

After you customize the Project Budget Account workflow, accounts must be generated for all budget lines in an integrated project budget. To generate accounts, you activate the Project Budget Account workflow. The workflow can be activated in either of two ways:

• You can activate the workflow manually by selecting the Generate Budget Accounting option from the Tools menu of the Budgets window.

• The workflow is activated automatically when you submit an integrated budget for baselining.

When you activate the workflow from the Tools menu, an account is generated or re-generated for all defined budget lines. When the workflow is activated during budget submission, accounts are only generated for budget lines that do not already have an assigned account.

Account Review and Override

Use the Budget Account Details window to review and optionally override the accounts generated by the Project Budget Account workflow. To access this window, select the Review Budget Accounting option from the Tools menu of the Budgets window.

The By Budget Line tab displays the account generated for each budget line. You can use this tab to enter manual account overrides. Because budget lines are created for each budget period, you must enter account overrides for all applicable periods. To enable this window for entry of manual overrides, you must set the PA: Allow Override of Budget Accounts profile option to Y (Yes) and enable override function security for your user responsibilities. For information on function security in Oracle Projects, refer to Appendix C in the Oracle Projects User Guide. For more information on defining function security, see the Oracle Applications System Administrator’s Guide.

Warning: Manually entered account overrides are automatically replaced with a generated account when the Project Budget Account workflow is activated using the Generate Budget Accounting option. If you add budget lines to an integrated budget after you have entered manual overrides for the budget, allow the budget submission process to generate accounts for the new lines.


Budget Account Details Window: By Budget Line Tab

Table 2-1 contains a description of each field in the By Budget Line tab of the Budget Account Details window.

Table 2-1 Budget Account Details Window: By Budget Line Tab Fields

Field Name Field Type Description

Task Number Display only Task

Resource Display only Resource

Period Name Display only Budget entry period name

Burdened Cost Display only Budget cost amount (if applicable)

Revenue Display only Budget revenue amount (if applicable)

Account Display and update Generated or manually entered account

Account Description Display only Account description for a selected budget line

Note: If a burdened cost budget line does not exist, Oracle Projects assumes that the burdened cost and the raw cost are the same and displays the raw cost budget amount in the Burdened Cost field.


The By Account tab displays budget line amounts summarized by account and budget entry period. The upper (header) region displays the summarized account line totals and the lower (Budget Details) region displays the budget lines summarized in the selected header line. For information about the Check Funds button, refer to the bottom-up budgeting and top-down budgeting chapters.

Budget Account Details Window: By Account Tab


Table 2-2 contains a description of each field in the header region of the By Account tab of the Budget Account Details window. All fields are for display only.

Table 2-2 Budget Account Details Window: By Account Tab Header Region Fields


Account Generated or manually entered account

Period Name Budget entry period name

Prior Budget Amount Budget amount for the previous budget version

Prior Available Amount Available funds for the previous budget version

Current Budget Amount Budget amount for the current budget version

Current Available Amount Available funds for the current budget version

Accounted Amount Difference between the available amounts for the prior and current budget versions

Status Indicates whether the funds check passed or failed

Result Status message for the funds check results

Account Description Account description for a selected account line

Table 2-3 contains a description of each field in the Budget Details region of the By Account tab of the Budget Account Details window. All fields are for display only.

Table 2-3 Budget Account Details Window: By Account Tab Details Region Fields


Task Number Task

Resource Resource

Period Name Budget entry period name

Burdened Cost Budget cost amount (if applicable)

Revenue Budget revenue amount (if applicable)

Note: If a burdened cost budget line does not exist, Oracle Projects assumes that the burdened cost and the raw cost are the same and displays the raw cost budget amount in the Burdened Cost field.


Account Generation Example The following example uses Fremont Corporation to present a strategy for customizing the Project Budget Account workflow. This strategy reduces the level of maintenance required for customization.

Note: For more information about Fremont Corporation and their implementation of Oracle Projects, refer to the previous chapter of this document and the Oracle Projects User Guide.

Fremont Corporation Background

The Fremont Corporation uses bottom-up budgeting for revenue reporting and top-down budgeting for controlling costs. They define their organization-level budgets in Oracle General Ledger and use Oracle Projects budget integration to integrate their project budgets with the defined GL budgets.

Fremont uses a four-segment accounting flexfield to represent their chart of accounts. The segments are: Company, Cost Center, Account, and Future Use.

Account Generation Business Rules

To generate accounts for integrated project budget lines, Fremont Corporation uses the following business rules:

• Company: Project owning organizations are used to derive the company segment.

• Cost Center

− Cost: Project budget expenditure organizations are used to derive the cost center segment. − Revenue: Project budget revenue organizations are used to derive the cost center segment.

• Account

− Cost: Project budget expenditure categories are used to derive the account segment. − Revenue: Project budget revenue categories are used to derive the account segment.

• Future Use: The future use segment is always assigned a value of 000.

Note: Fremont Corporation enters budget amounts using a two-level resource list. Budget amounts are entered by organization and expenditure/revenue category.


Business Rule Implementation

To implement their business rules, Fremont Corporation defines the AutoAccounting lookup sets listed below. They customize the Project Budget Account workflow to use the lookup sets to assign values to each account segment. This approach reduces the effort required to customize the Project Budget Account workflow in the future. As new organizations and expenditure categories are created, the new values can be added to the defined lookup sets.

Owning Organization/Company Lookup Set

Intermediate Value Segment Value

Administration 01

Engineering 02

Construction 03

Services 04

Expenditure Organization/Cost Center Lookup Set


Consulting 420

Administration 520

Executive Office 710

Finance 720

Information Services 830

Revenue Organization/Cost Center Lookup Set


Consulting 420

Administration 520

Executive Office 710

Information Services 830


Expenditure Category/Account Lookup Set


Supplies 7490

Computer Services 7520

Construction 7560

Consulting 7570

Labor 7580

Expenses 7640

Revenue Category/Account Lookup Set


Support Revenue 4120

Consulting Revenue 4130

Training Revenue 4140

Miscellaneous Revenue 4150

Account Generation Test

To test the customizations for the Project Budget Account workflow, Fremont generates accounts for the project budget listed below:

Administration Project A Cost Budget

Expenditure Organization

Expenditure Category

Jan-01 Amount

Consulting Expenses 100

Administration Supplies 100

Information Services Labor 100

The account generation results, shown below, validate the customizations and lookup set definitions.

Administration Project A Cost Budget



Jan-01 Amount

Account

Consulting Expenses 100 01-420-7640-000

Administration Supplies 100 01-520-7490-000

Information Services Labor 100 01-830-7580-000



Chapter 3: Bottom-Up Budget Integration

This chapter describes the new bottom-up budget integration feature in Oracle Projects.


Bottom-Up Budgeting Overview When enterprises use bottom-up budgeting, they build organization-level budgets by consolidating budget amounts from lower-level sources. As illustrated in Figure 3-1, the organization-level cost budget may be defined by consolidating the approved cost budgets for all projects owned by the organization. Similarly, the organization-level revenue budget may be defined by consolidating all project revenue budgets.

Figure 3-1 Bottom-up Budgeting

Project 2

Cost Budget

Project 1

Cost Budget

Project 1

Revenue Budget

Project 2

Revenue Budget

OrganizationBudgeted

Costs

OrganizationBudgetedRevenue

This type of budgeting allows project managers to define their own budgets for controlling and monitoring individual project costs and revenues, and provides financial managers with an organization-level view for reporting purposes.

Projects Bottom-up Budget Integration

Define bottom-up integration for your projects if you want to automatically consolidate your project budget amounts to create organization-level budgets. Currently, Oracle Projects only supports integration with non-project budgets defined in Oracle General Ledger. Therefore, to use the projects bottom-up integration feature, you must use Oracle General Ledger to store and maintain your organization-level budgets.


Bottom-Up Budget Integration Procedures Perform the following procedures to use bottom-up budget integration in Oracle Projects:

• Define your organization-level budgets in Oracle General Ledger.

• Define budget integration for your projects.

• Enter project budget amounts and generate accounts for each project budget line.

• Baseline your project budgets to interface the budget amounts to General Ledger.

• Create budget journal entries from the interfaced amounts in General Ledger.

• Review and post the budget journal entries to add the project budget amounts to the organization-level budget balances.

Defining an Organization-Level Budget

When using bottom-up budget integration, you must define your organization-level budget or budgets in Oracle General Ledger. In Oracle General Ledger, budgets represent estimated cost or revenue amounts for a range of accounting periods. Budget organizations define the departments, cost centers, divisions, or other groups for which budget data is maintained. You assign accounts to each budget organization. You create organization budget balances by entering budget amounts for the assigned accounts.

Oracle General Ledger gives you a variety of tools to create, maintain, and track budgets. See the Oracle General Ledger User Guide for information.


Defining Budget Integration

You define budget integration using the new Budgetary Control option from the Projects, Templates window.

Budget Integration Window

You can use any project budget type to define bottom-up budget integration. For a project, you can define integration for either cost or revenue budget types, or for both types. For example, you can integrate a project forecast cost budget with an organization-level cost budget, and you can integrate a project forecast revenue budget with an organization-level revenue budget.

Note: If a baselined budget already exists for a project, then the budget type for the baselined budget cannot be used when defining budget integration for the project. Additionally, the organization-level budget in General Ledger must have a status of Open or Current.


Entering Budget Amounts and Generating Accounts

When using bottom-up budget integration, you integrate a project budget type with an organization-level budget defined in Oracle General Ledger. Budgets defined in Oracle General Ledger are account-level budgets. General Ledger budget amounts are maintained by account and GL period. Therefore, when entering project budget amounts for integrated budget types, you must use a budget entry method that is time-phased by GL period and assign an account to each project budget line. Oracle Projects provides a workflow process, the Project Budget Account workflow, which enables you to automate the process of generating accounts for budget lines. For more information on generating accounts for project budget lines, see: Chapter 2: Budget Integration.

Deferred Workflow Process

When bottom-up integration is defined for a project, the project budget baseline process launches a deferred workflow. The deferred process performs the following tasks:

• validates the submitted budget version

• optionally, activates the budget workflow for controlling budget status changes

• interfaces the budget amounts for successfully baselined budget versions to Oracle General Ledger

When the deferred workflow is activated, the budget version status is set to In Process. When the workflow ends, a workflow notification is generated. When the workflow completes without errors, the budget version is baselined and a new draft version with a Working status is created. If the workflow terminates as a result of an error, the budget version is not baselined and the budget status is changed to Rejected.

For additional information about viewing workflow notifications, refer to the Oracle Workflow Guide.


Baseline Validations

When a bottom-up integrated project budget is baselined, the budget line amounts are interfaced to Oracle General Ledger. Budget journal entries are created from the interfaced amounts. Oracle Projects validates the amounts to be interfaced during the budget baseline process. If the amounts to be interfaced will result in entries that cannot be posted in Oracle General Ledger, then the baseline process fails and no budget amounts are interfaced.

Journals cannot be posted if either of the following is true:

• The journal entry is posting to a closed GL period.

Oracle General Ledger does not allow a journal to be posted in a closed GL period. Therefore, the Projects baseline process fails and no amounts are interfaced if the integrated budget contains a new or changed budget amount for a closed GL period.

• The journal entry violates the defined budgetary controls.

General Ledger funding budgets define spending limits for accounts. You can enable budgetary controls to ensure that actual plus encumbrance balances for an account do not exceed the account budget balance. Oracle General Ledger does not allow journals to be posted if they violate budgetary controls defined for the funding budget. Therefore, if a project budget is integrated with a General Ledger funding budget and budgetary controls are enabled, a funds check is performed against the funding budget for all amounts to be interfaced to General Ledger. To perform the funds checks, Oracle Projects summarizes the project budget lines by account and GL period. If funds are not available in the funding budget for all amounts to be interfaced, the project baseline process fails and no amounts are interfaced.

When bottom-up budgeting is enabled in Projects, the baseline process can only generate a funds check failure if a budget is being rebaselined. In this case, the new budget version may contain reduced budget amounts, or a budget line in the previous version may be deleted from the new version. These budget reductions are interfaced to General Ledger to reduce the organization-level budget balances. An interfaced amount causes the General Ledger funds check to fail if it reduces the budget balance for an account to a value that is less than the current actual plus encumbrance balances. For a detailed example, see the Bottom-Up Budget Integration Examples section in this chapter.


Troubleshooting Baseline Failures If the Projects baselining process fails as a result of a funds check failure, you can view the By Account tab of the Budget Accounts Details window to identify the project budget amounts generating the funds check failure. The Budget Account Details window is accessed by selecting the Review Budget Accounting option from the Tools menu of the Budgets window.


The By Account tab displays budget line amounts summarized by account and budget entry period. The upper (header) region displays the summarized account line totals and the lower (Budget Details) region displays the budget lines summarized in the selected header line.

For a given account, the Prior amount fields display the previously baselined amounts. The Current amount fields display the new budget amounts. The Accounted Amount field (viewed using the horizontal scroll bar) displays the amounts to be interfaced to General Ledger when the new budget version is baselined. Negative values in the Accounted Amount field indicate decreased or deleted budget line amounts.

Use the Check Funds button to identify the budget lines causing a funds check failure. When this button is selected, Oracle Projects performs a funds check against the General Ledger funding budget for all accounts with an accounted amount greater or less than zero. The funds check process returns a funds check result for each account line. Use the vertical scroll bar to view the results. You can view the budget lines assigned to an account by selecting an account line. The budget lines for the selected account are displayed in the Budget Details region.

Note: Before you baseline a project budget that is integrated to a General Ledger funding budget, you can use the Check Funds button to ensure that the amounts to be interfaced do not violate budgetary controls defined for the funding budget.


Creating Budget Journals

After an integrated project budget is baselined and budget amounts are interfaced to General Ledger, use the General Ledger Create Journals process to create budget journal entries from the interfaced amounts. If a project cost budget is integrated to a General Ledger budget, new or increased project budget amounts create debit journal entry lines, and deleted or decreased project budget amounts create credit journal entry lines. If a project revenue budget is integrated to a General Ledger budget, new or increased project budget amounts create credit journal entry lines and deleted or decreased project budget amounts create debit journal entry lines. The Create Journals process groups the generated journal entries into journal batches. If budget amounts are interfaced for multiple GL periods, a batch is created for each period.

See the General Ledger User Guide for more information on the Create Journals process.

Posting Budget Journals

The General Ledger organization-level budget balances are updated when the budget journal batches created by the Create Journals process are posted. You can review and post the entries using the General Ledger Post Journals window.

See the General Ledger User Guide for more information on reviewing and posting journals.


Bottom-Up Budget Integration Examples Two bottom-up budget integration examples are provided below. The first example demonstrates how Fremont Corporation uses budget integration to perform bottom-up revenue budgeting. The second example demonstrates how a funding budget funds check failure can result from a bottom-up integrated project budget.

Fremont Corporation Example

At Fremont Corporation, project managers define forecast revenue budgets for all revenue-generating projects. The project budgets are consolidated into organization-level budgets. Fremont’s financial managers use the organization-level revenue budgets as tools for reporting and analysis.

Note: For more information about Fremont Corporation and their implementation of Oracle Projects, refer to the previous chapters of this document and the Oracle Projects User Guide.

Create an Organization-Level Budget The Services division of the corporation enters and baselines the forecast revenue budgets for all approved projects for the last quarter of the current fiscal year. The fourth quarter project budgets are consolidated into the following organization-level budget in Oracle General Ledger:

2001/Q4 Services Forecast Revenue Budget

Account Oct-01 Nov-01 Dec-01

04-420-4120-000 1,000 1,000 1,000

04-420-4130-000 5,000 5,000 5,000

04-420-4140-000 2,000 2,000 2,000

04-420-4150-000 500 500 500

04-520-4120-000 1,000 1,000 1,000

04-520-4130-000 5,000 5,000 5,000

04-520-4140-000 2,000 2,000 2,000

04-520-4150-000 500 500 500

04-710-4130-000 1,000 1,000 1,000


Define Budget Integration Mr. Smith, a project manager for the Services division, signs a contract for a short-term software development project. He creates a project in Oracle Projects to track the costs and revenues for the software development project. In order to consolidate the forecast revenue amounts for the project into the fourth quarter organization-level budget for the division, Mr. Smith integrates the project Forecast Revenue Budget to the General Ledger 2001/Q4 Services Forecast Revenue Budget using a balance type of Budget.

Create a Project Budget Mr. Smith enters the following revenue budget in Oracle Projects:

Forecast Revenue Budget

Organization Category Oct-01 Nov-01 Dec-01

Information Services Consulting 500 500

Consulting Training 500 500

Consulting Support 500

Generate Accounts Mr. Smith uses the Generate Budget Accounting option from the Tools menu to generate accounts for each forecast budget line. Accounts are generated as follows:

Organization Category GL Period Amount Account

Information Services Consulting Oct-01 500 04-830-4130-000

Information Services Consulting Nov-01 500 04-830-4130-000

Consulting Training Nov-01 500 04-420-4140-000

Consulting Training Dec-01 500 04-420-4140-000

Consulting Support Dec-01 500 04-420-4120-000

Baseline the Project Budget Mr. Smith baselines the project forecast revenue budget. He notifies the Finance Department to generate budget journals to add the project forecast budget amounts to the forecast budget for the Services organization.


Create Budget Journal Entries A representative of the Finance Department runs the Program: Create Journals process and the following journal entries are generated.

GL Period Account Debit Credit

Oct-01 04-830-4130-000 500

Nov-01 04-830-4130-000 500

Nov-01 04-420-4140-000 500

Dec-01 04-420-4120-000 500

Dec-01 04-420-4140-000 500

Note: Oracle General ledger does not require balanced budget journal entries.

Update the Organization-Level Budget The above journal entries are posted to update the 2001/Q4 Services Forecast Revenue budget balances. The new forecast revenue balances for the Services division are as follows:

2001/Q4 Services Forecast Revenue Budget

Account Oct-01 Nov-01 Dec-01

04-420-4120-000 1,000 1,000 1,500

04-420-4130-000 5,000 5,000 5,000

04-420-4140-000 2,000 2,500 2,500

04-420-4150-000 500 500 500

04-520-4120-000 1,000 1,000 1,000

04-520-4130-000 5,000 5,000 5,000

04-520-4140-000 2,000 2,000 2,000

04-520-4150-000 500 500 500

04-710-4130-000 1,000 1,000 1,000

04-830-4130-000 500 500


GL Funding Budget Integration Example

When a project budget is integrated to a General Ledger funding budget and General Ledger budgetary controls are enabled, the project budget baseline process performs a funds check for each project budget line before interfacing amounts to General Ledger. If any line fails the funds check, then the baseline process fails and no amounts are interfaced.

The funds check process verifies that actual plus encumbrance balances do not exceed budget balances. When bottom-up budgeting is enabled, project budget amounts generally increase the budget balances. Therefore, the project budget lines usually pass the funding budget fund checks.

However, after an integrated project budget has been interfaced to General Ledger, it can be modified in Oracle Projects. If budget lines are deleted or budget amounts are decreased and bottom-up integration is defined, the reductions are interfaced to General Ledger to reduce budget balances. In this case, it is possible that a funds check failure can result. This scenario is described in detail below.

In this example, account 01-710-7050-000 has the following balances:

Account GL Period Budget Balance Encumbrance Balance

Actual Balance

01-710-7050-000 Jan-01 0 0 0

A project cost budget is integrated with the General Ledger funding budget. The project cost budget for Task 1 is defined as follows:

Task Jan-01 Feb-01 Mar-01 Account

1.1 1,000 1,000 1,000 01-710-7050-000

1.2 1,000 1,000 1,000 01-710-7050-000

When the project budget is baselined and the budget amounts are interfaced to General Ledger, the resulting budget journals increase the Jan-01 account budget balance as follows:


Actual Balance

01-710-7050-000 Jan-01 2,000 0 0


Transactions are entered against the account and accounted in General Ledger. The resulting balances are as follows:


Actual Balance

01-710-7050-000 Jan-01 2,000 1,000 500

After the above transactions are posted, the project manager modifies the project budget and decreases the Jan-01 budget amounts for the subtasks 1.1 and 1.2 from $1,000 to $500. The new budget amounts are as follows:

Task Jan-01 Feb-01 Mar-01 Account

1.1 500 1,000 1,000 01-710-7050-000

1.2 500 1,000 1,000 01-710-7050-000

If the project budget baselines successfully, the budget amounts interfaced to the General Ledger decrease the Jan-01 budget balance for the account by $1,000. However, the existing actual plus encumbrance balance for the account in Jan-01 is $1,500. Therefore, the projects baseline process fails. The new project budget cannot be baselined until the Jan-01 budget amounts for budget lines that map to account 01-710-7050-000 total $1,500 or more.


Projects Bottom-Up Budget Integration Implementation Steps To prepare your environment to use the new Projects integration feature for bottom-up budgeting, perform the following steps:

1. Define the Project Budget Account workflow process.

2. Define the PA: Allow Override of Budget Accounts profile option.

3. Define the PA: Enable Budget Integration and Budgetary Control Feature profile option.

4. Define integration details for your project types, project templates, and projects.

Defining the Project Budget Account Workflow Process

Use the new Project Budget Account workflow process to generate accounts for project budget lines. When a project budget is integrated with a non-project budget, an account must be generated for all defined project budget lines. You must customize the Project Budget Account workflow process to generate accounts according to your business needs. For more information on customizing and using the workflow process, see Chapter 2: Budget Integration.

Defining the PA: Allow Override of Budget Accounts Profile Option

This new profile option enables you to control whether accounts generated by the Project Budget Account workflow process can be manually overridden by users. For information about this profile option and the use of the override function, see Chapter 2: Budget Integration.

Defining the PA: Enable Budget Integration and Budgetary Control Feature Profile Option

To define budget integration for your projects, you must enable budget integration by setting the new PA: Enable Budget Integration and Budgetary Control Feature profile option to Y (Yes). For more information about this profile option, see Chapter 1: Budgetary Controls.

Defining Integration for Project Types, Project Templates, and Projects

Define budget integration for a project using the new Budgetary Control option, which is accessed from the Projects, Template window. You can define budget integration defaults for Project Types and Project Templates. Integration settings defined for a project type are the default values for project templates. Values defined for project templates are the default values for projects. When you define a project type, you indicate whether or not the default values for budget integration can be changed at the project level.


Defining Integration for Project Types


��To define bottom-up budget integration for a project type: 1. Navigate to the Budgetary Control tab for a project type.

2. Check the Allow Override at Project Level check box if you want to allow users to modify the default budget integration settings at the project level. If the check box is not checked, the values for the project template are copied from the project type and cannot be changed.

3. Select a project budget type to be integrated. You can select any active budget type.

4. For Balance Type, select Budget. For bottom-up integration, the Balance Type must be Budget.

5. For Non-Project Budget, select a General Ledger budget from the list of values. Projects supports bottom-up integration with Oracle General Ledger only. Only defined budgets with a status of Open or Current appear in the list of values.

6. Save your work.

Note: For Bottom-Up Budgeting, all other budgetary control fields must be blank.


Defining Integration for Project Templates and Projects

Projects, Templates Budget Integration Window

��To define bottom-up budget integration for a project template or project: 1. Navigate to the Budgetary Control option of the Projects, Template window.

2. Select a project budget type to be integrated. You can select any active budget type.

3. For Balance Type, select Budget. For bottom-up integration, the Balance Type must be Budget.

4. For Non-Project Budget, select a General Ledger budget from the list of values. Projects supports bottom-up integration with Oracle General Ledger only. Only defined budgets with a status of Open or Current appear in the list of values.

5. Save your work.

Note: For Bottom-Up Budgeting, all other budgetary control fields must be blank.

Note: If entry is not allowed, verify that the project type budgetary control settings allow override at the project level.


Chapter 4: Top-Down Budget Integration

This chapter describes the new top-down budget integration feature in Oracle Projects.


Top-Down Budgeting Overview When enterprises use top-down budgeting, top management establishes spending limits for each of their organizations. It is generally mandated that the costs for each organization remain within these defined limits. To ensure that costs do not exceed the established amounts, Oracle General Ledger allows you to enable budgetary controls and define funding budgets. When absolute control is enabled, cost transactions are rejected if budgeted funds are not available.

You can further control costs by enabling encumbrance accounting. When encumbrance accounting is used, commitment transactions are controlled in addition to actual transactions. Actual transactions are accounted expenditures. Commitment transactions are planned expenditures. Commitment transactions include purchase requisitions, purchase orders, and unaccounted supplier invoices. When commitment transactions are approved, accounting entries are generated to reserve funds in the funding budget. This reservation reduces the available funds for all future transactions.

Projects Top-Down Budget Integration

When top-down budgeting is used and encumbrance accounting is enabled, Oracle Projects now enables you to integrate project budgets with funding budgets. As project cost budgets are approved and baselined, the system generates encumbrance entries to reserve funds in the funding budget for the anticipated project costs. These reservations ensure that budgeted funds are not consumed before project costs are incurred. They also give management a more complete picture of each organization’s financial position. As future projects and future purchases are evaluated, management can review the costs of their current expenditures, the anticipated costs of approved commitments and approved projects, and the funds available for future use.


Top-Down Budget Integration Procedures This section provides an overview of the procedures for implementing and using the new Oracle Projects budget integration feature for top-down budgeting purposes. The following areas are discussed:

• Implementation Prerequisites

• Defining General Ledger Funding Budgets

• Defining Budget Integration

• Creating Project Encumbrances

• Liquidating Project Encumbrances

Implementation Prerequisites

Top-down budgeting in Oracle Projects is based on budgetary controls and encumbrance accounting. To implement top-down integration, you must also enable budgetary controls in Oracle General Ledger and enable encumbrance accounting in Oracle General Ledger and Oracle Payables.

When you enable budgetary controls in General Ledger, the funds check process is activated as commitment transactions are approved. This process verifies the availability of funds.

When you enable encumbrance accounting, reservations are created against funding budgets for approved commitment transactions and approved cost budgets for integrated projects.

Defining General Ledger Funding Budgets

Before budget integration can be defined, you must define your organization-level funding budget or budgets in Oracle General Ledger. In General Ledger, funding budgets represent estimated costs for a range of accounting periods. Budget organizations define the departments, cost centers, divisions, or other groups for which budget data is maintained. Accounts are assigned to each budget organization. A funding budget is associated with each account assignment. To establish an organization’s spending limits, you create funding budget balances for the accounts assigned to each budget organization.

Oracle General Ledger gives you a variety of tools to create, maintain, and track budgets. For more information, see the Oracle General Ledger User Guide.



To reserve funds in General Ledger funding budgets for anticipated project costs, define budget integration using the new Budgetary Controls option from the Projects, Templates window. You must define Integration before the project budget is baselined and before any project transactions are entered.


When you use top-down integration, it is recommended that you define two budgets for monitoring and tracking project costs. Define one budget for tracking the project’s total cost, and define another budget for tracking and controlling expense commitment transactions. When you define integration for your project, use the budget type you plan to use for your commitment budget and select a balance type of Encumbrance. When the commitment budget is defined and baselined, encumbrance entries are generated to create a project encumbrance against the funding budget. The project encumbrance reserves funds for the anticipated project commitment costs. When project-related expense commitment transactions are approved, the project encumbrance is reduced and new commitment encumbrances are created.

When you define integration using the Encumbrance balance type, the system automatically enables budgetary controls for the project. The Project control level is automatically set at Absolute and cannot be changed. Oracle Projects uses budgetary controls to ensure that the project commitment total for expense transactions never exceeds the project commitment budget and the amounts reserved in the General Ledger funding budget.

For information on Oracle Projects Budgetary Controls, see Chapter 1.


Creating Project Encumbrances

To reserve funds for a project defined with top-down integration, you must define a project commitment budget using the integrated budget type. When the commitment budget is baselined, Oracle Projects verifies that funds are available in the General Ledger funding budget for the budgeted project commitment costs. If funds are available, Projects interfaces the project budget line amounts to General Ledger. The General Ledger Create Journals process generates project encumbrance entries from the interfaced amounts to reserve funds in the funding budget for the anticipated project costs.

For information on creating and baselining a project cost budget, refer to the Project Budget Creation section of this chapter.

Liquidating Project Encumbrances

When encumbrance accounting is enabled in Oracle General Ledger, encumbrance entries are created against the funding budget when a commitment transaction is approved. These encumbrance entries reserve funds for the commitment transaction line amounts. If the commitment is for an expense-type item and is related to a project defined with top-down integration, then additional encumbrance entries are created to reduce the project reservation against the funding budget.

The charts below illustrate the project encumbrance creation and liquidation processes. Chart A illustrates a funding budget for Organization A. The funding budget defines the spending limits for the organization. Chart B illustrates a project reservation created for an integrated project commitment budget. The project reservation consumes a portion of the funding budget and reduces the available funds. Chart C illustrates the creation of a reservation for a project-related commitment transaction and the reduction of the project reservation as the commitment reservation is created. Note that the total available funds for Organization A do not change when the commitment reservation is created. Instead, the commitment reservation replaces a portion of the project reservation.

Figure 4-1 Encumbrance Creation and Liquidation

Chart A Chart B Chart C

Organization A Project Reservation Project and Commitment Available Funds Reservation


Top-Down Budget Integration Example The following example uses Fremont Corporation to demonstrate how General Ledger budgeting features are enhanced when budget integration is defined for project budgets. The encumbrance entries generated from budget amounts interfaced from Oracle Projects reduce the funding budget available funds. This allows for more accurate reporting and gives management more information for evaluating future costs and future projects.

Note: For more information about Fremont Corporation and their implementation of Oracle Projects, refer to the previous chapters of this document and the Oracle Projects User Guide.

Fremont Corporation Cost Controls

Fremont Corporation has decided to reduce their use of outside resources. It is the opinion of upper management that most projects can be completed on schedule using internal resources and improved project management. For the last quarter of the current fiscal year, each organization is required to reduce the cost of outside resources by 20% of last quarter’s usage. In addition, a member of top management must now approve the cost budget for any new project that plans to use outside resources.

To enforce this cost reduction, the Fremont financial managers are using Oracle General Ledger budgetary controls and encumbrance accounting features. They define funding budgets for each organization to establish their spending limits for the next quarter. Weekly outside resource cost reports are provided to the vice presidents of each organization. The cost reports are distributed to assist vice presidents in evaluating future requests for outside resources. The reports display the following information:

• Budgeted Funds: spending limit established by the financial managers

• Actual Costs: cost for outside resources used to date

• Committed Costs: anticipated costs for approved future usage of outside resources

• Available Funds: budgeted funds that are unused and uncommitted

Payroll Enhancement Project

The Fremont payroll system needs to be enhanced to handle expense reports in foreign currencies. As the company grows, employees are frequently required to travel outside the United States. The accounting department wants to allow employees to enter expense receipts in the currencies of the countries where expenses are incurred.

The Fremont Services organization will make the necessary payroll enhancements. All costs for the project will be charged to their organization. Mr. Smith is assigned as the project manager. After preliminary analysis, he estimates the project will last 3 months. He plans to use internal resources from the Information Services department to perform the majority of the work. However, he knows he will need to contract a consultant to provide some expertise that he currently does not have in house.


Mr. Smith is using Oracle Projects to manage the project. Because he plans to use outside resources, he submits the following cost budget to his vice president for approval:

Payroll Enhancement Cost Budget



Oct-01 Nov-01 Dec-01

Information Services Labor 4,000 4,000 4,000

Administration Labor 500 500 500

Consulting Labor 1,000 1,000 1,000

Consulting Expenses 1,000 1,000 1,000

The vice president of the Services organization receives Mr. Smith’s submitted budget. To evaluate the request for outside resources, he reviews his latest outside resource cost report. The report indicates the following:

Services Organization Outside Resource Cost Report

October 2001

Account Description Budgeted Funds

Actual Costs

Committed Costs

Available Funds

04-420-7580-000 Consulting.Labor 5,000 2,000 1,000 3,000

04-420-7640-000 Consulting.Expenses 5,000 2,000 1,000 3,000

November 2001


Actual Costs

Committed Costs

Available Funds

04-420-7580-000 Consulting.Labor 5,000 0 3,000 2,000

04-420-7640-000 Consulting.Expenses 5,000 0 3,000 2,000

December 2001


Actual Costs

Committed Costs

Available Funds



After evaluating the report, the vice president approves the budget for the payroll enhancements. When doing so, he asks Mr. Smith to reduce the General Ledger funding budget available funds to reflect the outside resource costs included in the payroll project budget.


To reduce the available funds in the funding budget, Mr. Smith defines top-down integration for the payroll enhancement project. He integrates the project commitment budget with the General Ledger funding budget. Mr. Smith then defines the following commitment budget for the payroll project:

Payroll Enhancement Commitment Budget



Oct-01 Nov-01 Dec-01

Consulting Labor 1,000 1,000 1,000

Consulting Expenses 1,000 1,000 1,000

When Mr. Smith submits the commitment budget for baselining, accounts are assigned to the budget lines as follows:



GL Period Budget Amount

Account

Consulting Labor Oct-01 1,000 04-420-7580-000

Consulting Labor Nov-01 1,000 04-420-7580-000

Consulting Labor Dec-01 1,000 04-420-7580-000

Consulting Expenses Oct-01 1,000 04-420-7640-000

Consulting Expenses Nov-01 1,000 04-420-7640-000

Consulting Expenses Dec-01 1,000 04-420-7640-000

Mr. Smith baselines the commitment budget. When the Finance Department submits the Program: Create Journals process to generate encumbrance journal entries for approved commitments, the following journals are created from the budget amounts interfaced by the payroll project:

GL Period Account Debit Credit

Oct-01 04-420-7580-000 1,000

Oct-01 04-420-7640-000 1,000

Oct-01 04-000-1250-000 2,000

Nov-01 04-420-7580-000 1,000

Nov-01 04-420-7640-000 1,000

Nov-01 04-000-1250-000 2,000

Dec-01 04-420-7580-000 1,000

Dec-01 04-420-7640-000 1,000

Dec-01 04-000-1250-000 2,000

Note: The 04-000-1250-000 account is defined as the reserve for encumbrance account in Oracle General Ledger.


When the vice president of the Services organization receives his next outside resource cost report, the totals reflect the costs he approved for the payroll project. The new report, shown below, clearly shows the funds remaining for future requests.

Services Organization Outside Resource Cost Report

October 2001


Actual Costs

Committed Costs

Available Funds

04-420-7580-000 Consulting.Labor 5,000 2,000 2,000 2,000

04-420-7640-000 Consulting.Expenses 5,000 2,000 2,000 2,000

November 2001


Actual Costs

Committed Costs

Available Funds



December 2001


Actual Costs

Committed Costs

Available Funds




Project Budget Creation When you define top-down budget integration for a project, it is recommended that you create a commitment budget for tracking and controlling the project’s expense commitment transactions. When you enter the budget amounts for this budget, note the following:

• Budgetary Controls are automatically enabled when top-down integration is defined.

• General Ledger accounts must be assigned to all budget lines for integrated budget types.

• When you create a budget for an integrated budget type, you must use a budget entry method that is time-phased by GL period.

• You must create a budget line for each budget category and budget period for which commitment transactions are expected.

• The baseline process for all integrated project budgets types uses a deferred workflow.

• Additional validations occur when you baseline an integrated project budget.

Budgetary Controls

When you define top-down budget integration, the system automatically enables budgetary controls for the integrated budget type. When you enter amounts for budgets with budgetary controls enabled, additional consideration is required if you plan to use a resource list for budget entry, or if you have enabled burdening for your project. For information, refer to Chapter 1: Budgetary Controls.

Entry Method and Budget Line Accounts

When you define top-down budget integration for a project, you integrate a project budget type with a funding budget defined in Oracle General Ledger. Funding budgets are maintained by account and GL period. To enable Oracle Projects to interface the project budget amounts to Oracle General Ledger, you must create the project budget using an entry method that is time phased by GL Period and you must generate an account for each project budget line. For more information on account generation, see Chapter 2: Budget Integration.

Budget Lines for all Budget Periods

When top-down integration is defined and the integrated budget is baselined, the project budget amounts are interfaced to General Ledger. Oracle General Ledger uses the interfaced amounts to create project encumbrances against the funding budget. When expense commitment transactions related to the integrated project are entered and approved, the project encumbrances are liquidated and commitment encumbrances are created. To obtain accounts for the liquidation entries, Oracle Projects maps each commitment transaction line to a project budget line using the project resource mapping rules and the transaction GL date. If a budget line is not defined for a transaction line resource category and GL period, then an account for the liquidation entry cannot be obtained. When an account liquidation entry cannot be obtained, the transaction cannot be approved.


Therefore, when entering budget amounts for a top-down integrated budget type, you must enter a budget amount for each budget category and GL period. If you are using a budgetary control time interval that allows budget amounts for one period to be consumed in another, ensure that your project has a defined start and end date. When start and end dates are provided, the budget baseline process generates budget lines with a zero amount for all missing budget category and budget period combinations. The baseline process then activates the Project Budget Account workflow process to generate an account for each new budget line.


When top-down budget integration is defined for a project, the project budget baseline process launches a deferred workflow process. The deferred process performs the following tasks:

• validates the submitted budget version

• creates budget lines for missing budget category and budget period combinations


• interfaces the budget amounts for successfully baselined budget versions to Oracle General Ledger

When the deferred workflow is activated, the budget version status is set to In Process. When the workflow ends, a workflow notification is generated. When the workflow completes without errors, the budget version is baselined and a new draft version with a Working status is created. If the workflow terminates as a result of an error, the budget version is not baselined and the budget status is changed to Rejected.




When a top-down integrated project budget is baselined, the budget line amounts are interfaced to Oracle General Ledger. Encumbrance journal entries are created from the interfaced amounts. Oracle Projects validates the amounts to be interfaced during the budget baseline process. If the amounts to be interfaced will result in encumbrance entries that cannot be posted in Oracle General Ledger, then the baseline process fails and no amounts are interfaced.



Oracle General Ledger does not allow a journal to be posted in a closed GL period. Therefore, the Projects baseline process fails and no amounts are interfaced if the integrated budget contains a new or changed budget amount for a closed GL period.


Journals cannot be posted if they violate budgetary controls defined for the funding budget. Therefore, the Projects baselining process performs a funds check against the funding budget for all amounts to be interfaced to General Ledger. To perform the funds checks, Oracle Projects summarizes the project budget lines by account and GL period. If funds are not available in the funding budget for all amounts to be interfaced, the project baseline process fails and no amounts are interfaced.


Troubleshooting Baseline Failures If the Projects baseline process fails as a result of a funds check failure, you can view the By Account tab of the Budget Accounts Details window to identify the project budget amounts generating the funds check failure. The Budget Account Details window is accessed by selecting the Review Budget Accounting option from the Tools menu of the Budgets window.



For a given account, the Prior amount fields display the previously baselined amounts. The Current amount fields display the new budget amounts. The Accounted Amount field displays the amounts to be interfaced to General Ledger when the new budget version is baselined.

Use the Check Funds button to identify the budget lines causing a funds check failure. When this button is selected, Oracle Projects performs a funds check against the General Ledger funding budget for all accounts with an accounted amount greater or less than zero. The funds check process returns a funds check result for each account line. Use the vertical scroll bar to view the results. You can view the budget lines assigned to an account by selecting an account line. The budget lines for the selected account are displayed in the Budget Details region.

Note: Before you baseline a project budget that is integrated to a General Ledger funding budget, you can use the Check Funds button to ensure that the amounts to be interfaced do not violate budgetary controls defined for the funding budget.


Transaction Processing When an expense commitment transaction that is related to a top-down integrated project is submitted for approval, the Oracle Projects funds check process is activated. This process verifies the available funds in the project commitment budget. If funds are available for the transaction, the project encumbrance against the General Ledger funding budget is reduced and a new commitment encumbrance is created. When an actual transaction is created from the commitment transaction, the commitment encumbrance is liquidated and the actual costs are accounted.

Commitment Transaction Example

As commitment transactions are processed, the reservation against the funding budget changes from one encumbrance type to another. The diagram in Figure 4-2 illustrates the process flow for a project commitment that originates as a purchase requisition. Each step in the process flow is described in the text that follows the illustration.

Figure 4-2 Commitment Transaction Process Flow

A B C D

Project Encumbrance

Commitment Encumbrance

ObligationEncumbrance

InvoiceEncumbrance Actual

A. When the purchase requisition is approved, a portion of the Project encumbrance is replaced by a Commitment encumbrance. If the Project encumbrance balance is $1,000 and the requisition total is $100, then the Project encumbrance is reduced to $900 and a Commitment encumbrance is created for $100.

B. When a purchase order is created from the purchase requisition and approved, the Commitment encumbrance is liquidated and an Obligation encumbrance is created.

C. When a supplier invoice is matched to the purchase order and approved, the Obligation encumbrance is liquidated and an Invoice encumbrance is created.

D. When the supplier invoice is accounted, the Invoice encumbrance is liquidated and actual costs are recorded.


Burden Cost Encumbrance Accounting

If a project has top-down integration defined and burdening is also enabled, the encumbrance liquidation process varies from the above example. When a commitment transaction is not burdened, all costs for the transaction are interfaced to General Ledger by Oracle Payables. However, when a commitment transaction is burdened, the raw transaction costs are interfaced to General Ledger by Oracle Payables and burden costs are interfaced to General Ledger by Oracle Projects.

Oracle Projects provides the following two options for accounting for burden costs:

• Burden costs can be accounted on the same expenditure item as raw costs.

• Burden costs can be accounted as separate expenditure items.

The encumbrance liquidation process differs depending on the accounting option enabled. The liquidation process for each option is described below and examples are provided that illustrate the encumbrance entries generated by each processing step.

Same Line Burden Cost Encumbrance Accounting When burden costs are accounted on the same expenditure item as raw costs, then the project commitment budget lines amounts must be entered using burdened cost amounts. The Project Budget Account workflow process, used to assigned accounts to each budget line, must be defined to generate accounts using the same business rules as the Total Burdened Cost AutoAccounting rules. This ensures that the project encumbrance creation entries generated when the project budget is baselined and the project encumbrance liquidation entries created as commitment transactions are processed use the same accounts.

As an expense commitment transaction is approved, the following encumbrance entries are generated for each transaction line:

• An entry is generated to create a commitment encumbrance using the transaction line amount and account.

• An entry is generated to create a commitment encumbrance using the calculated burdened cost amount for the line and an account derived from the project commitment budget.

• An entry is generated to liquidate the project encumbrance using the calculated burdened cost amount for the line and an account derived from the project commitment budget.

Note: The accounts and amounts for the last two entries described above are always the same. The account is derived by mapping the transaction line to a budget line using the standard resource mapping rules and selecting the account from the budget line.

The commitment encumbrances are liquidated as the actual costs are interfaced to General Ledger. Oracle Payables interfaces the transaction raw costs and liquidates the commitment encumbrance created from the transaction line account and amount. Oracle Projects interfaces the burdened costs and liquidates the commitment encumbrance created from the burdened cost amount and the budget line account.


Same Line Burden Cost Encumbrance Accounting Example

In this example, the project budget shown below is baselined:

Task Resource Group Resource Budget Amount Account

T1.0 Suppliers Capp Construction 1,000 A1

The following encumbrance line is generated by the baseline process:

Line Encumbrance Type Account Description Debit Credit

1 PA Encumbrance A1 Capp Construction Budget Line Account

1,000

A project-related supplier invoice is entered and approved for Capp Construction. The invoice has one line for $50. Two burden cost components apply to the invoiced line: Material Handling with a rate of 5%, and R&D with a rate of 10%. The following encumbrance lines are created by the invoice approval process:


1 PA Encumbrance A1 Capp Construction Budget Line Account

57.50

2 Invoice Encumbrance A1 Capp Construction Budget Line Account

57.50

3 Invoice Encumbrance B1 Invoice Line Account 50.00

Oracle Payables interfaces raw costs to Oracle General Ledger. The following encumbrance line is created:


1 Invoice Encumbrance B1 Invoice Line Account 50.00

Oracle Projects interfaces burden costs to Oracle General Ledger. The following encumbrance line is created:


1 Invoice Encumbrance A1 Capp Construction Budget Line Account

57.50


Separate Line Burden Cost Encumbrance Accounting When burden costs are accounted as separate expenditure items, the project commitment budget must include budget amounts for raw transaction costs and budget amounts for burden transaction costs. If a resource list is not used when budget amounts are entered, then the raw cost amounts and the burden cost amounts can be entered on the same budget line using the burdened amount type. If a resource list is used when budget amounts are entered, then the resource list must include a resource for each burden cost component. Budget lines must be entered for the transaction raw costs and for the burden costs associated with each burden component.

As an expense commitment transaction is approved, the following encumbrance entries are generated for each transaction line:

• An entry is generated to create a commitment encumbrance for the raw cost using the transaction line amount and account.

• For each burden cost component, an entry is generated to create a commitment encumbrance using the calculated burden cost amount and an account derived from the project commitment budget.

• An entry is generated to liquidate the project encumbrance using the transaction line amount and account.

• For each burden cost component, an entry is generated to liquidate the project encumbrance using the calculated burden cost amount and an account derived from the project commitment budget.

Note: The account for the burden cost entries is derived by mapping the burden cost component to a budget line using the standard resource mapping rules and selecting the account from the budget line.

The commitment encumbrances are liquidated as the actual costs are interfaced to General Ledger. Oracle Payables interfaces the transaction raw costs and liquidates the commitment encumbrance created from the transaction line account and amount. Oracle Projects interfaces the burden costs and liquidates the commitment encumbrances created from the burden cost amounts and the budget line accounts. Therefore, the Project Budget Account workflow and the Burden Cost Account AutoAccounting rules must use the same business rules when generating accounts for burden costs.


Separate Line Burden Cost Encumbrance Accounting Example

In this example, the project budget shown below is baselined:

Task Resource Group Resource Budget Amounts Account

T1.0 Suppliers Capp Construction 1,000 A1

T1.0 Overhead Material Handling 50 A2

T1.0 Overhead R&D 100 A3

The following encumbrance lines are generated by the baseline process:


1 PA Encumbrance A1 Budget Line Account for Resource: Capp Construction

1,000

2 PA Encumbrance A2 Budget Line Account for Resource: Material Handling

50

3 PA Encumbrance A3 Budget Line Account for Resource: R&D

100

A project-related supplier invoice is entered and approved for Capp Construction. The invoice has one line for $50. Two burden cost components apply to the invoiced line: Material Handling with a rate of 5%, and R&D with a rate of 10%. The following encumbrance lines are created by the invoice approval process:


1 PA Encumbrance A1 Budget Line and Invoice Line Account

50.00

2 PA Encumbrance A2 Material Handling Budget Line Account

2.50

3 PA Encumbrance A3 R&D Budget Line Account 5.00

4 Invoice Encumbrance A1 Budget Line and Invoice Line Account

50.00

5 Invoice Encumbrance A2 Material Handling Budget Line Account

2.50

6 Invoice Encumbrance A3 R&D Budget Line Account 5.00


The invoice is interfaced to General Ledger. The following encumbrance line is created:


1 Invoice Encumbrance A1 Budget Line and Invoice Line Account

50.00

Oracle Projects interfaces burden costs to General Ledger. The following encumbrance lines are created:


1 Invoice Encumbrance A2 Material Handling Budget Line Account

2.50

2 Invoice Encumbrance A3 R&D Budget Line Account 5.00


Budgetary Control Balance Maintenance Projects uses budgetary controls to ensure that the project commitment total for expense transactions never exceeds the project commitment budget and the amounts reserved in the General Ledger funding budget. Invoiced commitment amounts are displayed as invoice commitments or project actuals. The invoiced amounts appear as actuals when the invoices are interfaced from Oracle Payables to Projects. Therefore, the cost budgetary control balances display the total commitment amount invoiced, the total commitment amount outstanding, as well as the uncommitted budget amounts (available funds). You can view these balances in the Budget Funds Check Results window. This window displays budget, actuals, commitments, and available funds balances for each budget level. A tab is displayed for each project budget level, which can include the following: project, top task, task, resource group and resource. This window can be used to review project-to-date transactions and to plan future expenditures.


��To review outstanding commitment balances and invoiced amounts (actuals) for a project: 1. Navigate to the Budgets window from the Projects Navigator.



4. Select View Funds Check Results from the Tools menu to display the Budget Funds Check Results window. This window displays budget control balance amounts by budget line at each budget control level.

5. Select a budget level tab to view budget lines for the specified budget level.

6. Choose the Commitments button to view the commitment details for a selected budget line.

For more information about maintaining budgetary control balances and using the Budget Funds Check Results window, see Chapter 1: Budgetary Controls.


Project Budget Maintenance When you modify a top-down integrated budget, the baselining process performs the following tasks for the new budget version:

• validates the budgetary controls defined for the project budget

• validates the budgetary controls defined for the funding budget

• validates the General Ledger period statuses

• updates the project encumbrance against the funding budget

Project Budgetary Controls

Project budgetary controls are validated when budget amounts are deleted or decreased and when the budget entry method is changed. When budget amounts are reduced, the baseline process performs funds checks to ensure that existing transaction totals do not exceed available funds calculated using the new budget amounts. When the budget entry method is altered and a budget version is created using new budget categories, the baseline process maps all existing transactions in open GL periods to a budget line in the new budget version. Funds checks are then performed for each transaction using budgetary controls defined for the new budget lines. If any transaction generates a funds check failure, the baseline process fails.

If a project budget fails to baseline, query the rejected budget version in the Budget Funds Check Results window. All budget lines with a negative amount in Funds Available and an Absolute control level must be adjusted before the budget version can be baselined. You can increase the budget amount or lower the control level.

For more information on using the Budget Funds Check Results window, see the Budgetary Control Balance Maintenance section in this chapter. For more information on defining budgetary controls, the funds check process, and the Budget Funds Check Results window, see Chapter 1: Budgetary Controls.

Funding Budget Controls

When budget amounts are increased or new budget lines are entered, additional funds must be reserved in the funding budget. Therefore, the baseline process performs a funds check against the funding budget to ensure that funds are available for the additional project budget amounts. If any funds check failures are returned, the baseline process fails.

If the Projects baseline process fails as a result of a funding budget funds check failure, you can view the By Account tab of the Budget Accounts Details window to identify the project budget amounts that caused the funds check failure. For information on using the By Account tab of the Budget Accounts Details window to identify the cause of a funds check failure, see the Troubleshooting Baseline Failures section in this chapter.


General Ledger Period Statuses

When the project budget is modified, all changes are interfaced to General Ledger to adjust the project reservation against the funding budget. Oracle General Ledger does not allow adjustments to closed periods. Therefore, the budget baseline process ensures that no adjustments are made to periods that are closed in General Ledger. Changes to closed periods generate funds check failures. For troubleshooting tips, refer to the Troubleshooting Baseline Failures section in this chapter.

Project Encumbrance Maintenance

When a revised budget is successfully baselined, the project encumbrance against the funding budget is adjusted. If new budget lines are added or existing budget line amounts are increased, then additional funds are reserved in the funding budget. If budget lines are decreased or deleted, then project encumbrances are liquidated, reducing the project reservation. The Accounted Amount column on the By Account tab of the Budget Accounts Details window displays the encumbrance adjustment amounts. Positive values reserve additional funds and negative values reduce the current reservation.


Year-End Processing When budgeted funds for a fiscal year are not used by the end of the year, many businesses move the available amounts to the next year. Organizations that operate under budget do not lose the budgeted amounts. Instead, their spending limits for the next year are increased.

Year End Budget Rollover Process

Oracle Projects provides a concurrent process, PRC: Year End Budget Rollover, to perform the rollover functions. For all selected top-down integrated budgets, the process performs the following tasks:

• creates a new budget version

• calculates the transfer amount for each project budget line by subtracting the total actual and commitment balances from the budgeted amounts

• adds the transfer amount for each project budget line to the budget amount for the first period of the next fiscal year

• subtracts the transfer amount for each budget line from the budget amount for the last period of the closing fiscal year (this sets the budget amounts for the closing year to the transaction total for the year)

• baselines the new budget version

When the new project budget version is baselined, the project encumbrances against the funding budget are adjusted. Liquidation entries are generated to remove the project reservation against the funding budget for the closing fiscal year. All liquidation entries are posted to the last non-adjusting period of the closing fiscal year. New encumbrance entries are generated to reserve funds for the new year. An entry is generated for each transferred amount and is posted to the first period of the next fiscal year.

The baseline process funds checks the new encumbrance entries in force pass mode. In force pass mode all budgetary controls are ignored. The encumbrance entries to reserve additional funds in the new year will be generated even if available funds for the funding budget are exceeded.

For more information on submitting and using the year-end rollover process, refer to Chapter 6: New and Changed Processes.


Year-End Rollover Example

In this example, the following project budget balance exist as of December 31, 2001:

Account Budget Amounts Actual Balance Commitment Balance

01-422-7550-000 60,000 0 55,000

01-422-7760-000 60,000 0 58,000

The following encumbrance entries are generated by the PRC: Year End Budget Rollover process to adjust the reservations against the General Ledger funding budget.

Period Budget Encumbrance Type Account Debit Credit

DEC-01 GL Funding PA Encumbrance 01-422-7550-000 5,000


JAN-02 GL Funding PA Encumbrance 01-422-7550-000 5,000



Projects Top-Down Budget Integration Implementation Steps To prepare your environment to use the new Projects integration feature for top-down budgeting, perform the following steps:




4. Define the PA: Days to Maintain BC Packets profile option.



Use the new Project Budget Account workflow process to generate accounts for project budget lines. When a project budget is integrated with a non-project budget, an account must be generated for all defined project budget lines. You must customize the Project Budget Account workflow process to generate accounts according to your business needs. For information on customizing and using the workflow process, see Chapter 2: Budget Integration.





Defining the PA: Days to Maintain BC Packets Profile Option

When top-down integration is defined, budgetary controls are automatically enabled. When using budgetary controls you should verify the value of the PA: Days to Maintain BC Packets profile option. For more information about this profile option, see Chapter 1: Budgetary Controls.


Defining Integration for Project Types, Project Templates, Projects




��To define top-down integration to Oracle General Ledger for a project type: 1. Navigate to the Budgetary Control tab for a project type.

2. Check the Allow Override at Project Level check box if you want to allow users to modify the default budgetary control and integration settings at the project level. If the check box is not checked, the values for the project template are copied from the project type and cannot be changed.

3. For Budget Type, select a project cost budget type. Top-down integration can be enabled for cost budget types only.

4. Check the Control Flag check box. Budgetary controls must be enabled when defining top-down integration.


5. For Balance Type, select Encumbrance. For top-down budget integration, the Balance Type must be Encumbrance.

6. For Non-Project Budget, select General Ledger Funding Budget.

7. For Encumbrance Type, select a value from the list of General Ledger encumbrance types.

8. Select a default control level for each budget level. For top-down integration, Oracle Projects imposes absolute control at the project level for all encumbered accounts.

9. Select an Amount Type and Boundary Code to be used when calculating available funds.

10. Save your work.

Note: The project budget controls must be compatible with the funding budget controls. The project budget controls must not allow a transaction to pass funds check if that transaction will fail a funds check against the funding budget. In general, the project budget controls must be equal to or more restrictive than the funding budget controls.




��To define top-down budget integration for a project or project template: 1. Navigate to the Budgetary Control option of the Project, Templates window.

2. For Budget Type, select a project cost budget type. Top-down integration can be enabled for cost budget types only.

3. Check the Control Flag check box. Budgetary controls must be enabled when defining top-down integration.

4. For Balance Type, select Encumbrance. For top-down budget integration, the Balance Type must be Encumbrance.

5. For Non-Project Budget, select General Ledger Funding Budget.

6. For Encumbrance Type, select a value from the list of General Ledger encumbrance types.

7. Select a default control level for each budget level. For top-down integration, Oracle Projects imposes absolute control at the project level for all encumbered accounts.

8. Select an Amount Type and Boundary Code to be used when calculating available funds.

9. Save your work.

Note: If entry is not allowed, ensure that the project type budgetary control settings allow override at the project level.


Chapter 5: Top-Down Budget Integration with Oracle Contract Commitments

This chapter describes the new budget integration features in Oracle Projects that enable top-down budget integration with Oracle Contract Commitments.

In this chapter, we assume that you have an understanding of the Contract Commitments application and the concepts presented in the following chapters of this document:

• Chapter 1: Budgetary Controls

• Chapter 2: Budget Integration

• Chapter 4: Top-Down Budget Integration


Integration with Oracle Contract Commitments Overview

Oracle Contract Commitments

The Oracle Contract Commitments application enables organizations to manage their business using dual budgetary control. With dual budgetary control, you use a commitment budget and a standard budget to manage and control costs. The commitment budget defines the amount of commitments an organization is willing to enter into in a given time period. The standard budget defines the amount an organization is willing to spend in a given time period.

All organization expenditures must originate as contract commitment transactions. Contract commitment transactions can consist of multiple commitment lines. Each line can have a different payment schedule. The commitment transaction lines are subject to the budgetary controls defined for the commitment budget. The commitment line payment schedules are subject to the budgetary controls defined for the standard budget.

Projects Top-Down Budget Integration

Oracle Projects now enables you to define top-down budget integration for both a commitment budget and a standard budget. In Projects, a commitment budget and a standard budget are defined using two different cost budget types. The commitment budget encumbers the Oracle Contract Commitments funding budget. The standard budget encumbers the Oracle General Ledger funding budget. When project-related contract commitments are approved, the project encumbrances against both funding budgets are liquidated.


Contract Commitments Integration Procedures This section provides an overview of the procedures for implementing and using the new Oracle Projects budget integration feature for top-down budget integration with Oracle Contract Commitments. The following areas are discussed:

• Implementation Prerequisites

• Defining Funding Budgets

• Defining Budget Integration

• Creating Project Encumbrances

• Liquidating Project Encumbrances

Implementation Prerequisites

You define contract commitments integration to perform top-down budgeting. Top-down budgeting in Oracle Projects is based on budgetary controls and encumbrance accounting. To implement budget integration for contract commitments processing, you must also enable budgetary controls in Oracle General Ledger and enable encumbrance accounting in Oracle General Ledger and Oracle Payables.

Defining Funding Budgets

When the Contract Commitments application is used, all cost transactions must originate as commitment transactions. A payment schedule is associated with each commitment transaction line. A Contract Commitments funding budget defines the amount of funds that can be committed by an organization during a specified timeframe. A General Ledger funding budget, often referred to as the standard budget, defines the amount of funds that can be spent by an organization during a specified timeframe.

Prior to defining project budget integration, you must define a Contract Commitments funding budget and a standard budget. For more information, see the Oracle Contract Commitments User’s Guide.



To reserve funds in funding budgets for anticipated project costs, define budget integration using the new Budgetary Controls option from the Projects, Templates window. You must define Integration before the project budget is baselined and before any project transactions are entered.


When you integrate Oracle Projects with Oracle Contract Commitments, you associate one project cost budget type with the General Ledger funding budget and another project cost budget type with the Contract Commitments funding budget. The project budget associated with the General Ledger funding budget controls the project’s actual costs. The project budget associated with the Contract Commitments funding budget controls the project’s commitment costs.

To specify top-down integration, select a balance type of Encumbrance. When the project budget is defined and baselined, encumbrance entries are generated to create project encumbrances against each funding budget. The project encumbrances reserve funds for the anticipated and committed project costs. When project-related contract commitment transactions are approved, the project encumbrances are reduced and new commitment encumbrances are created.

When you define integration using a balance type of Encumbrance, the system automatically enables budgetary controls. The Project control level is automatically set at Absolute and cannot be changed. Oracle Projects uses budgetary controls to ensure that the project commitment total and the project actual total do not exceed the amounts defined in each project budget. The project cost totals can never exceed the amounts reserved in the funding budgets.

For information on Oracle Projects Budgetary Controls, see Chapter 1.


Creating Project Encumbrances

To reserve funds for anticipated project costs, you must define a project commitment budget and a project standard budget. When the project budgets are baselined, Oracle Projects verifies that funds are available in each funding budget for the budgeted project costs. If funds are available in both funding budgets, Projects interfaces the project commitment budget line amounts to Oracle Contract Commitments to reserve funds in the funding budget for the anticipated project commitment costs. Projects interfaces the project standard budget amounts to Oracle General Ledger. The General Ledger Create Journals process generates encumbrance entries from the interfaced amounts to reserve funds in the General Ledger funding budget for the anticipated actual project costs.

For details on creating and baselining project commitment and standard budgets, refer to the Project Budget Creation section of this chapter.


Liquidating Project Encumbrances

When a project-related contract commitment transaction is approved, a funds check is performed. The contract commitment line amounts are checked against the project commitment budget. The payment schedule for each commitment line is checked against the project standard budget. If funds are available for all lines and payment schedules and the transaction is approved, then commitment encumbrance entries are created against the funding budgets. The commitment transaction line amounts encumber the Contract Commitments funding budget and the transaction line payment schedules encumber the General Ledger funding budget. At the same time, encumbrance liquidation entries are created to reduce the project reservations against each funding budget.

As supplier invoices are matched to the commitment transactions and paid, encumbrances against the General Ledger funding budget are liquidated and actual costs are accounted.

Contract Commitment Transaction Example As commitment transactions are processed, the reservation against the funding budgets changes from one encumbrance type to another. The diagrams in Figures 5-1 and 5-2 illustrate the process flows for a project commitment that originates as a provisional contract commitment. Each step in the process flows is described in the text that follows each illustration.

Figure 5-1 Contract Commitments Funding Budget Encumbrances

A B

Project Encumbrance

CommitmentEncumbrance

ActualEncumbrance

A. When the provisional commitment is approved, a portion of the Project encumbrance against the contract commitment funding budget is replaced by a Commitment encumbrance. If the Project encumbrance balance is $1,000 and the provisional commitment total is $100, the Project encumbrance is reduced to $900 and a Commitment encumbrance is created for $100.

B. When the provisional commitment is confirmed, the Commitment encumbrance is liquidated and an Actual encumbrance is created. The Contract Commitments funding budget reports confirmed commitments as actual costs.


Figure 5-2 General Ledger Funding Budget

A B C D

Project Encumbrance

Commitment Encumbrance

ObligationEncumbrance

InvoiceEncumbrance Actual

A. When the provisional commitment is approved, a portion of the Project encumbrance against the General Ledger funding budget is replaced by a Commitment encumbrance. If the Project encumbrance balance is $1,000 and the provisional commitment total is $100, then the Project encumbrance is reduced to $900 and a Commitment encumbrance is created for $100.

B. When the provisional commitment is confirmed, the Commitment encumbrance is liquidated and an Obligation encumbrance is created.

C. When a supplier invoice is matched to the confirmed commitment, the Obligation encumbrance is liquidated and an Invoice encumbrance is created.

D. When the supplier invoice is accounted, the Invoice encumbrance is liquidated and actual costs are recorded.


Project Encumbrance Example The following example illustrates the creation and liquidation of project encumbrances.

Funding Budget Balances

The beginning balances for the Chemical Research organization commitment and standard funding budgets are shown below:

Contract Commitments Funding Budget

The balances for the commitment budget defined in Oracle Contract Commitments are as follows:

January 2001

Account Budget Amount

Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 300,000 0 0 0 300,000

General Ledger Funding Budget

The balances for the standard budget defined in Oracle General Ledger are as follows:

January 2001


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 0 0 0 100,000

January 2002


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 0 0 0 100,000

January 2003


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 0 0 0 100,000


Project Budgets

The Chemical Research organization is awarded a 3-year research grant. The grant provides $15,000 the first year, $10,000 the second year, and $5,000 the third year. A project is created to track research activities and costs.

The following project budgets are defined and integrated to the organization funding budgets:

Project Commitment Budget

Budget Category

GL Period Amount Account

Project Jan-01 30,000 01-422-7550-000

Project Standard Budget

Budget Category

GL Period Amount Account

Project Jan-01 15,000 01-422-7550-000

Project Jan-02 10,000 01-422-7550-000

Project Jan-03 5,000 01-422-7550-000


Project Reservations

When the project budgets are baselined, encumbrance accounting entries are generated to reserve funds in the funding budgets. The new funding budget balances are shown below.


The balances for the commitment budget defined in Oracle Contract Commitments are as follows:

January 2001


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 300,000 30,000 0 0 270,000


The balances for the standard budget defined in Oracle General Ledger are as follows:

January 2001


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 15,000 0 0 85,000

January 2002


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 10,000 0 0 90,000

January 2003


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 5,000 0 0 95,000


Commitment Transaction Encumbrance

The project-related contract commitment transaction shown below is approved in January, 2001 for research assistance costs.

Confirmed Contract Commitment

Item Account Amount Payment Date

Commitment Line 1 01-422-7550-000 1,800

Payment Line 1 900 01-Jan-01



The Contract Commitments funding budget balances are adjusted as follows:


January 2001


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 300,000 28,200 1,800 0 270,000


The General Ledger funding budget balances are adjusted as follows:


January 2001


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 14,100 900 0 85,000

January 2002


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 9,400 600 0 90,000

January 2003


Project Encumbrance

Commitment Amount

Actual Amount

Available Funds

01-422-7550-000 100,000 4,700 300 0 95,000


Project Budget Creation When Oracle Projects is integrated with Oracle Contract Commitments, a project commitment budget and a project standard budget are defined for tracking commitment activities and controlling costs. When you create each of these budgets, note the following:

• Budgetary Controls are automatically enabled when top-down integration is defined.

• General Ledger accounts must be assigned to all budget lines for integrated budget types.

• When you create a budget for an integrated budget type, you must use a budget entry method that is time-phased by GL period.

• You must create a budget line for each budget category and budget period for which commitment transactions are expected.

• The baseline process for all integrated project budgets types uses a deferred workflow.

− The baselining process for the project standard budget baselines both the standard budget and the commitment budget.

− Additional validations occur when you baseline integrated project budgets.

Budgetary Controls

When you define top-down budget integration, the system automatically enables budgetary controls for the integrated budget type. When you enter amounts for budgets with budgetary controls enabled, additional consideration is required if you plan to use a resource list for budget entry, or if you have enabled burdening for your project. For information, refer to Chapter 1: Budgetary Controls.

Entry Method and Budget Line Accounts

When Oracle Projects is integrated with Oracle Contract Commitments, top-down budgeting is enabled. Project commitment and standard budgets encumber commitment and standard funding budgets. The funding budgets are maintained by account and GL period. To enable Oracle Projects to interface the project budget amounts for encumbrance creation, you must create the project budget using an entry method that is time phased by GL Period and you must generate an account for each project budget line. For more information on account generation, see Chapter 2: Budget Integration.

Budget Lines for all Budget Periods

When project budgets are integrated to General Ledger and Contract Commitments funding budgets, the project budgets encumber the funding budgets. When contract commitment transactions are entered and approved, the project encumbrances are liquidated and commitment encumbrances are created. The accounts for the project liquidation entries are obtained by mapping the transaction lines and payment schedule lines to project budget lines. This mapping process uses the standard resource mapping rules and the transaction GL date to locate the budget line associated with each transaction line. If a budget line is not defined for the transaction line resource category and GL


period, then an account for the liquidation entry cannot be obtained. When an account liquidation entry cannot be obtained, the transaction cannot be approved.

Therefore, when entering budget amounts for a top-down integrated budget type, you must enter a budget amount for each budget category and GL period. If you are using a budgetary control time interval that allows budget amounts for one period to be consumed in another, ensure that your project has a defined start and end date. When start and end dates are provided, the budget baseline process generates budget lines with a zero amount for all missing budget category and budget period combinations. The baseline process then activates the Project Budget Account workflow process to generate an account for each new budget line.


When integration with Oracle Contract Commitments is defined, you must create a project commitment budget and a project standard budget in Oracle Projects. When the project standard budget is baselined, the project commitment budget is automatically baselined. When you create the two budgets, the following steps are recommended:

• Enter the project commitment budget amounts.

• Submit the project commitment budget.

• Enter the project standard budget amounts.

• Submit the project standard budget.

• Baseline the project standard budget.

The baseline process for the project standard budget launches a deferred workflow process. The deferred process performs the following tasks:

• validates the submitted project standard budget version

• creates budget lines in the standard budget for missing budget category and budget period combinations

• validates the submitted project commitment budget version

• creates budget lines in the commitment budget for missing budget category and budget period combinations


• interfaces budget amounts for successfully baselined commitment budgets to Oracle Contract Commitments

• interfaces budget amounts for successfully baselined standard budgets to Oracle General Ledger

When the deferred workflow is activated, the standard budget version status is set to In Process. When the workflow ends, a workflow notification is generated. When the workflow completes without errors, the commitment and standard budget versions are baselined and new draft versions with a Working status are created. If the workflow terminates as a result of an error, the budget versions are not baselined and the budget statuses are changed to Rejected.




Additional validations are performed during the project baseline process when you define budget integration with Oracle Contract Commitments.

Budget Total Amount Validation When you define budget integration with Contract Commitments, the total budget amounts for the project standard budget and the project commitment budget must equal. However, the budget time periods can differ. For example, you can create a project commitment budget that covers a 1-year period and has a total budget amount of $10,000. You can create a corresponding project standard budget that covers a 5-year period as long as the total budget amount equals $10,000.

The baseline process for the standard budget compares the total amount for the submitted standard budget version with the total amount for the submitted commitment budget version. If a submitted commitment budget version does not exist, but a baselined version exists, then the system uses the total amount for the baselined budget version for comparison. If the total amounts for the standard and commitment budget versions are different, or if a submitted or baselined commitment budget version does not exist, then the deferred workflow completes with errors and the project budgets are not baselined.

Budget Amount Validation When a budget that is integrated with the General Ledger funding budget is baselined, the budget line amounts are interfaced to Oracle General Ledger. When a budget that is integrated with the Contract Commitments budget is baselined, the budget line amounts are interfaced to Oracle Contract Commitments. Encumbrance journal entries are created from the interfaced amounts to reserve funds in the funding budgets for the anticipated project costs.

Oracle Projects validates the amounts to be interfaced during the budget baseline process. If the amounts to be interfaced will result in encumbrance entries that cannot be posted, then the baseline process fails and no amounts are interfaced.



Oracle General Ledger does not allow a journal to be posted in a closed GL period. Therefore, the Projects baseline process fails and no amounts are interfaced if the integrated budgets contain new or changed budget amounts for closed GL periods.


Journals cannot be posted if they violate budgetary controls defined for the funding budgets. Therefore, a funds check is performed against the General Ledger funding budget for amounts to be interfaced from the project standard budget. A funds check is performed against the Contract Commitments funding budget for amounts to be interfaced from the project commitment budget. To perform the funds checks, Oracle Projects summarizes the project budget lines by account and GL period. If funds are not available in the funding budgets for all amounts to be interfaced, the project baseline process fails and no amounts are interfaced.


Troubleshooting Baseline Failures If the Projects baseline process fails as a result of a funds check failure, you can view the By Account tab of the Budget Accounts Details window to identify the project budget amounts generating the funds check failure. The Budget Account Details window is accessed by selecting the Review Budget Accounting option from the Tools menu of the Budgets window.



For a given account, the Prior amount fields display the previously baselined amounts. The Current amount fields display the new budget amounts. The Accounted Amount field displays the amount to be interfaced for encumbrance creation when the new budget version is baselined.

Use the Check Funds button to identify the budget lines causing a funds check failure. When this button is selected, Oracle Projects performs a funds check against the funding budget for all accounts with an accounted amount greater or less than zero. The funds check process returns a funds check result for each account line. Use the vertical scroll bar to view these results. You can view the budget lines assigned to an account by selecting an account line. The budget lines for the selected account are displayed in the Budget Details region.

Note: Before you baseline a project budget that is integrated to a funding budget, you can use the Check Funds button to ensure that the amounts to be interfaced do not violate budgetary controls defined for the funding budget.


Budgetary Control Balance Maintenance Oracle Projects maintains budgetary control balances for both the project commitment budget and the project standard budget.

Commitment Budgetary Control Balances The budgetary control balances for the commitment budget reflect project-to-date approved commitments. You can view these balances in the Budget Funds Check Results window.


��To review all approved commitments for a project: 1. Navigate to the Budgets window from the Projects Navigator.

2. Query the project commitment budget.





Commitment Amounts Window

Choose the Commitments button on the Budget Funds Check Results window to view the commitment details for a selected budget line.


Cost Budgetary Control Balances Like the commitment budget, the budgetary control balances for the cost budget reflect project-to-date approved commitments. However, invoiced commitment amounts are displayed as invoice commitments or project actuals. The invoiced amounts appear as actuals when the invoices are interfaced from Oracle Payables to Projects. Therefore, the cost budgetary control balances display the total commitment amount invoiced, the total commitment amount outstanding, as well as the uncommitted budget amounts (available funds). You can view these balances in the Budget Funds Check Results window.


��To review outstanding commitment balances and invoiced amounts (actuals) for a project: 1. Navigate to the Budgets window from the Projects Navigator.






Project Budget Maintenance When maintaining project budgets, you must ensure that the total amounts for the project commitment budget and the project standard budget remain the same. If you increase or decrease the budget amounts for one budget, you must change the budget amounts for the other budget. If a change is made to the project standard budget that does not affect the budget total, it is not necessary to modify the project commitment budget. However, if any change is made to the project commitment budget, you must rebaseline the project standard budget. You cannot rebaseline the commitment budget without rebaselining the standard budget. When rebaselining the standard budget, it is not necessary to make any changes. You can just query, submit, and baseline the budget.

The baseline process performs the following actions for the new budget versions:

• validates the budgetary controls defined for the project standard budget

• validates the budgetary controls defined for the project commitment budget

• validates the budgetary controls defined for the General Ledger funding budget

• validates the budgetary controls defined for the Contract Commitments funding budget

• validates the status of GL periods

• updates the project encumbrance for the General Ledger funding budget

• updates the project encumbrance for the Contract Commitments funding budget

Project Budgetary Controls

Project budgetary controls are validated when budget amounts are deleted or decreased and when the budget entry method is changed. When budget amounts are reduced, the baseline process performs funds checks to ensure that existing transaction totals do not exceed available funds calculated using the new budget amounts. When the budget entry method is altered and a budget version is created using new budget categories, the baseline process maps all existing transactions in open GL periods to a budget line in the new budget version. Funds checks are then performed for each transaction using budgetary controls defined for the new budget lines. If any transaction generates a funds check failure, the baseline process fails.

If a project budget fails to baseline, query the rejected budget version in the Budget Funds Check Results window. All budget lines with a negative amount in Funds Available and an Absolute control level must be adjusted before the budget version can be baselined. You can increase the budget amount or lower the control level.

For more information on using the Budget Funds Check Results window, see the Budgetary Control Balance Maintenance section in this chapter. For more information on defining budgetary controls, the funds check process, and the Budget Funds Check Results window, see Chapter 1: Budgetary Controls.


Funding Budget Controls

When budget amounts are increased or new budget lines are entered, additional funds must be reserved in the funding budgets. Therefore, the baseline process performs a funds check against the funding budgets to ensure that funds are available for the additional project budget amounts. If any funds check failures are returned, the baseline process fails.

If the Projects baseline process fails as a result of a funding budget funds check failure, you can view the By Account tab of the Budget Accounts Details window to identify the project budget amounts that caused the funds check failure. For information on using the By Account tab of the Budget Accounts Details window to identify the cause of a funds check failure, see the Troubleshooting Baseline Failures section in this chapter.

General Ledger Period Statuses

When the project budget is modified, all changes are interfaced to General Ledger and Oracle Contract Commitments to adjust the project reservations against the funding budgets. Oracle General Ledger does not allow adjustments to closed periods. Therefore, the budget baseline process ensures that no adjustments are made to periods that are closed in General Ledger. Changes to closed periods generate funds check failures. For troubleshooting tips, refer to the Troubleshooting Baseline Failures section in this chapter.

Project Encumbrance Maintenance

When a revised budget is successfully baselined, the project encumbrances against the funding budgets are adjusted. If new budget lines are added or existing budget line amounts are increased, then additional funds are reserved in each of the funding budgets. If budget lines are decreased or deleted, then project encumbrances are liquidated, reducing the project reservations. The Accounted Amount column on the By Account tab of the Budget Accounts Details window displays the encumbrance adjustment amounts. Positive values reserve additional funds and negative values reduce the current reservation.


Year-End Processing When budgeted funds for a fiscal year are not used by the end of the year, many businesses move the available amounts to the next year. Organizations that operate under budget do not lose the budgeted amounts. Instead, their spending limits for the next year are increased.

Year End Budget Rollover Process

Oracle Projects provides a concurrent process, PRC: Year End Budget Rollover, to perform the rollover functions. For all selected top-down integrated budgets, the process performs the following tasks:






When the new project budget version is baselined, the project encumbrances against the funding budget are adjusted. Liquidation entries are generated to remove the project reservation against the funding budgets for the closing fiscal year. All liquidation entries are posted to the last non-adjusting period of the closing fiscal year. New encumbrance entries are generated to reserve funds for the new year. An entry is generated for each transferred amount and is posted to the first period of the next fiscal year.

The baseline process funds checks the new encumbrance entries in force pass mode. In force pass mode, all budgetary controls are ignored. The encumbrance entries to reserve additional funds in the new year will be generated even if available funds for the funding budgets are exceeded.

For more information on submitting and using the year-end rollover process, refer to Chapter 6: New and Changed Processes.


Year-End Rollover Example

In this example, the following project cost and commitment budget balance exist as of December 31, 2001:

Year-End Commitment Budget Balances


01-422-7550-000 60,000 0 55,000

01-422-7760-000 60,000 0 58,000

Year-End Cost Budget Balances


01-422-7550-000 60,000 50,000 5,000

01-422-7760-000 60,000 40,000 18,000

The following encumbrance entries are generated by the PRC: Year End Budget Rollover process to adjust the reservations against the General Ledger funding budget.

General Ledger Year-End Rollover Encumbrance Entries

Period Budget Encumbrance Type Account Dr Amount Cr Amount





The following encumbrance entries are generated by the PRC: Year End Budget Rollover process to adjust the reservations against the Contract Commitments funding budget.

Contract Commitment Year-End Rollover Encumbrance Entries

Period Budget Encumbrance Type Account Dr Amount Cr Amount

DEC-01 CC Funding PA Encumbrance 01-422-7550-000 5,000

DEC-01 CC Funding PA Encumbrance 01-422-7760-000 2,000

JAN-02 CC Funding PA Encumbrance 01-422-7550-000 5,000

JAN-02 CC Funding PA Encumbrance 01-422-7760-000 2,000


Contract Commitments Integration Implementation Steps To prepare for integration with Oracle Contract Commitments, perform the following steps:




4. Define the PA: Days to Maintain BC Packets profile option.



Use the new Project Budget Account workflow process to generate accounts for project budget lines. When a project budget is integrated with a non-project budget, an account must be generated for all defined project budget lines. You must customize the Project Budget Account workflow process to generate accounts according to your business needs. For information on customizing and using the workflow process, see Chapter 2: Budget Integration.





Defining the PA: Days to Maintain BC Packets Profile Option

When top-down integration is defined, budgetary controls are automatically enabled. When using budgetary controls you should verify the value of the PA: Days to Maintain BC Packets profile option. For more information about this profile option, see Chapter 1: Budgetary Controls.


Defining Integration for Project Types, Project Templates, Projects


When integrating Oracle Projects with Oracle Contract Commitments, you must associate one project cost budget type with the General Ledger funding budget and another project cost budget type with the Contract Commitments funding budget. Each budget type must have budgetary controls enabled.



��To define top-down integration to the funding budgets for a project type: 1. Navigate to the Budgetary Control tab for a project type.

2. Check the Allow Override at Project Level check box if you want to allow users to modify the default budgetary control and integration settings at the project level. If the check box is not checked, the values for the project template are copied from the project type and cannot be changed.


3. Define integration settings for the project cost budget and the General Ledger funding budget. For Budget Type, select a project cost budget type. For Balance Type, select Encumbrance. For Non-Project Budget, select General Ledger Funding Budget. For Encumbrance Type, select a value from the list of encumbrance types.

4. For the project cost budget, check the Control Flag checkbox to enable budgetary controls. Additionally, select a default control level for each budget level and an Amount Type and Boundary Code.

5. Define integration settings for the project commitment budget and the Contract Commitments funding budget. For Budget Type, select a project commitment budget type. For Balance Type, select Encumbrance. For Non-Project Budget, select Contract Commitments Funding Budget. For Encumbrance Type, select a value from the list of encumbrance types.

6. For the project commitment budget, check the Control Flag checkbox to enable budgetary controls. Additionally, select a default control level for each budget level and an Amount Type and Boundary Code

7. Save your work.

Note: The control level setting at the project level must be Absolute. When top-down budgeting is enabled, Oracle Projects imposes absolute control at the project level for all encumbered accounts. Additionally, the project budget controls must be compatible with the funding budget controls. The project budget controls must not allow a transaction to pass funds check if that transaction will fail a funds check against the funding budget. In general, the project budget controls must be equal to or more restrictive than the funding budget controls.




To define top-down integration to the funding budgets for a project or project template: 1. Navigate to the Budgetary Control option of the Project, Templates window.

2. Define integration settings for the project cost budget and the General Ledger funding budget. For Budget Type, select a project cost budget type. For Balance Type, select Encumbrance. For Non-Project Budget, select General Ledger Funding Budget. For Encumbrance Type, select a value from the list of encumbrance types.

3. For the project cost budget, check the Control Flag checkbox to enable budgetary controls. Additionally, select a default control level for each budget level and an Amount Type and Boundary Code.

4. Define integration settings for the project commitment budget and the Contract Commitments funding budget. For Budget Type, select a project commitment budget type. For Balance Type, select Encumbrance. For Non-Project Budget, select Contract Commitments Funding Budget. For Encumbrance Type, select a value from the list of encumbrance types.

5. For the project commitment budget, check the Control Flag checkbox to enable budgetary controls. Additionally, select a default control level for each budget level and an Amount Type and Boundary Code

6. Save your work.


Note: The control level setting at the project level must be Absolute. When top-down budgeting is enabled, Oracle Projects imposes absolute control at the project level for all encumbered accounts. Additionally, the project budget controls must be compatible with the funding budget controls. The project budget controls must not allow a transaction to pass funds check if that transaction will fail a funds check against the funding budget. In general, the project budget controls must be equal to or more restrictive than the funding budget controls.

Note: If entry is not allowed, ensure that the project type budgetary control settings allow override at the project level.


Chapter 6: New and Changed Processes

This chapter describes new and changed concurrent processes that support budgetary controls and budget integration in Oracle Projects.


New Processes The following new processes have been added to support budgetary controls and budget integration:

• Maintain Budgetary Control Balances

• Year End Budget Rollover

Maintain Budgetary Control Balances

The PRC: Maintain Budgetary Control Balances process updates budgetary control balances for transactions that pass funds reservation. The process also deletes funds check results records from the PA_BC_PACKETS table that are older than the value for the PA: Days to Maintain BC Packets profile option.

If you use Projects budgetary controls, we recommend that you set the PRC: Maintain Budgetary Control Balances process to run at regular intervals.

Attention: When budgetary controls and burdening are enabled for a project, the PRC: Maintain Budgetary Control Balances process must complete before the project’s burden costs are interfaced to General Ledger.

Process Submission From the Submit Request window, submit the PRC: Maintain Budgetary Control Balances process.

See: The Oracle Projects User Guide for more information.

Process Parameters This process has no parameters.

Reports No report is generated.


Year End Budget Rollover

The PRC: Year End Budget Rollover process transfers year-end balances for top-down integrated project budgets to the next fiscal year. For all selected top-down integrated budgets, the process performs the following tasks:






Note: The baseline process funds checks the new encumbrance entries in force pass mode. In force pass mode, all budgetary controls are ignored. The encumbrance entries to reserve additional funds in the new year will be generated even if the funding budgets available funds will be exceeded.

Process Submission From the Submit Request window, submit the PRC: Year End Budget Rollover process.

See: The Oracle Projects User Guide for more information.

Process Parameters

• Closing Fiscal Year: You must specify the fiscal year from which you are transferring budget balances.

• Organization Name: To optionally select all projects belonging to a specified project organization, select an organization name. Otherwise, leave this field blank.

• From Project Number: To optionally specify a range of projects to be processed, enter the beginning project number. Otherwise, leave this field blank.

• To Project Number: When specifying a range of projects to be processed, enter the ending project number.

Reports Two output reports display the results of this process:

• Year End Budget Rollover – Success Report: Lists all project budget amounts successfully rolled over to the next fiscal year. Rollover amounts are listed by project number and budget type.

• Year End Budget Rollover – Exception Report: Lists any project budgets that failed the rollover process and displays a rejection reason.


Changed Processes The following processes have been changed to support budgetary controls and budget integration:

• Create and Distribute Burden Transactions

• Distribute Supplier Invoice Adjustment Costs

• Distribute Total Burdened Cost

• Interface Supplier Invoices from Payables

• Interface Usage and Miscellaneous Costs to General Ledger

• Interface Total Burdened Costs to General Ledger

Create and Distribute Burden Transactions This process has been modified to adjust encumbrance entries for transaction burden costs when top-down budget integration is defined for a project. Between the time a commitment transaction is approved and the time burden cost distribution lines are generated in Projects, the burden multipliers can be changed. The PRC: Create and Distribute Burden Transaction process liquidates the encumbrances created for burden cost during the approval of a commitment transaction and generates new encumbrances using the current burden cost component multipliers.

Distribute Supplier Invoice Adjustment Costs This process initiates a funds check during the cost distribution process for supplier invoice adjustments entered in Oracle Projects. If top-down budget integration is enabled, the process generates journal entries to relieve existing encumbrance amounts and create new encumbrance balances based on the adjustment transaction details.

Distribute Total Burdened Cost This process has been modified to adjust encumbrance entries for transaction burdened costs when top-down budget integration is defined for a project. Between the time a commitment transaction is approved and the time burden cost distribution lines are generated in Projects, the burden multipliers can be changed. The PRC: Distribute Total Burdened Cost process liquidates the encumbrances created for burdened cost during the approval of a commitment transaction and generates new encumbrances using the current burden cost component multipliers.

Interface Supplier Invoices from Payables This process has been modified to adjust encumbrance entries for transaction burden costs when top-down budget integration is defined for a project. Between the time a commitment transaction is approved and the time the supplier invoice is interfaced to Projects, the burden multipliers can be changed. The PRC: Interface Supplier Invoices from Payables process liquidates the encumbrances created for burdened cost during the approval of a commitment transaction and generates new encumbrances using the current burden cost component multipliers.


Interface Usage and Miscellaneous Costs to General Ledger When top-down budget integration is enabled, this process liquidates the encumbrance against the funding budget for interfaced burden amounts for commitment transactions.

Interface Total Burdened Costs to General Ledger When top-down budget integration is enabled, this process liquidates the encumbrance against the funding budget for interfaced burden amounts for commitment transactions.



Chapter 7: Product Update Notes

This chapter describes the technical changes made to Oracle Projects in this release.


Modules This section lists the modules that were added or changed for Oracle Projects in this release.

New Forms Form Name Description Budgetary Control (PAXBUBCL) After a project budget is baselined, you can use this

form to review and update the default control level settings for each budget level.

Budget Funds Check Results (PAXBLRSL) Use this form to view budgetary control balances for a project.

Transaction Funds Check Results (PAXTRFCK) This form enables you to review funds check results for transactions.

Changed Forms Form Name Description of Change Budgets (PAXBUEBU) The Tools menu for the Budgets form was modified to include

the following options when budgetary controls and budget integration are enabled: Generate Budget Accounting, Review Budget Accounting, View Funds Check Results, and Budgetary Controls

Project Types (PAXSUDPT) The existing Budget Control tab was renamed Budget Option. A new Budgetary Control tab was added that enables you to define default budgetary control and budget integration settings for a project type.

Projects, Templates (PAXPREPR) The new Budgetary Control option enables you to define budgetary control and budget integration settings for a project template or project.

Resource Lists (PAXREDRL) A new column, Control Levels, enables you to define default control level settings for resource groups and resources.


New Windows Window Name Description Budget Account Details (PAXBUEBU.ACCT_INFO) You use this window to review and update accounts

generated by the Project Budget Account workflow. It can also be used to review budget balances by account and budget line.

Budget Integration (PABDINTG.BDGTRY_CNTRL_OPTS)

This new window is accessed by selecting the Budgetary Control option on the Projects, Templates form. You use this window to define budgetary control and budget integration settings for a project template or project.

Changed Windows Budgetary Control (PAXSUDPT.PROJECT_TYPES) A new Budgetary Control tab has been added to the

Project Types window. You use this region to define default budgetary control and budget integration settings for a project type.

New Reports Report Name Description Year End Budget Rollover - Success Report This report is generated by the PRC: Year End

Budget Rollover process. It lists all project budget amounts that are successfully rolled over to the next fiscal year. Amounts are listed by project and budget type.

Year End Budget Rollover - Exception Report This report is generated by the PRC: Year End Budget Rollover process. It shows any project budgets that failed the rollover process and displays a rejection reason.

New Concurrent Programs Program Name Description PRC: Maintain Budgetary Control Balances This process updates budgetary control balances for

transactions that pass funds check. This process also deletes from the PA_BC_PACKETS table funds check results records that are older than the value specified in the PA: Days to Maintain BC Packets profile option.

PRC: Year End Budget Rollover This process enables you to transfer year-end balances for top-down integrated projects to the next fiscal year.


Changed Concurrent Programs Program Name Description of Change PRC: Create and Distribute Burden Transactions This process was modified to adjust encumbrance

entries for transaction burden costs when top-down budget integration is defined for a project.

PRC: Distribute Supplier Invoice Adjustment Costs When budgetary controls are enabled, this process now initiates a funds check during the cost distribution process for supplier invoice adjustments entered in Projects. If top-down budget integration is enabled, the process generates journal entries to relieve existing encumbrance amounts and to create new encumbrance balances based on the adjustment transaction details.

PRC: Distribute Total Burdened Cost This process was modified to adjust encumbrance entries for transaction burdened costs when top-down budget integration is defined for a project.

PRC: Interface Supplier Invoices from Payables This process was modified to adjust encumbrance entries for transaction burden costs when top-down budget integration is defined for a project. Burden costs are adjusted only if the burden components or burden multipliers are changed after invoices are approved.

PRC: Interface Total Burdened Costs to General Ledger

When top-down budget integration is enabled, this process liquidates the encumbrance against the funding budget for interfaced burden amounts for commitment transactions.

PRC: Interface Usage and Miscellaneous Costs to General Ledger

When top-down budget integration is enabled, this process liquidates the encumbrance against the funding budget for interfaced burden amounts for commitment transactions.

Other Changed Programs Program Name Description of Change Budget Baseline Process When budgetary controls and budget integration

are enabled for a project, the budget baseline process now launches a deferred workflow process. When the deferred workflow is activated, the budget version is set to In Process. When the workflow ends, a workflow notification is generated. When the workflow completes without errors, the budget version is baselined and a new draft version with a Working status is created. If the workflow terminates as a result of an error, the budget version is not baselined and the budget status is changed to Rejected.

Budget Submission Process When budget integration is defined, this process now activates the Project Budget Account Workflow process to generate accounts for all budget lines that do not already have an assigned account.


New Workflows/Account Generator Processes Workflow Name Description Project Budget Account Workflow When bottom-up or top-down budget integration is

enabled, this workflow is used to generate accounts for project budget lines.


Database Objects

This section lists the database objects that were added, changed, or made obsolete for Oracle Projects in this release.

New Tables This table… was added to support this feature… PA_BC_BALANCES Budgetary controls and budget integration PA_BC_COMMITMENTS_ALL Budgetary controls and budget integration PA_BC_PACKETS Budgetary controls and budget integration PA_BC_PACKET_ARRIVAL_ORDER Budgetary controls and budget integration PA_BUDGETARY_CONTROLS Budgetary controls and budget integration PA_BUDGETARY_CONTROL_OPTIONS Budgetary controls and budget integration PA_BUDGET_ACCT_LINES Budgetary controls and budget integration PA_PROJECT_ROLE_TYPES_B MLS in roles PA_PROJECT_ROLE_TYPES_TL MLS in roles

Changed Tables

The following new columns were added to existing tables:

Table Name New Columns PA_BUDGET_LINES COST_REJECTION_CODE REVENUE_REJECTION_CODE BURDEN_REJECTION_CODE OTHER_REJECTION_CODE CODE_COMBINATION_ID CCID_GEN_STATUS_CODE CCID_GEN_REJ_MESSAGE PA_COST_DISTRIBUTION_LINES_ALL LIQUIDATE_ENCUM_FLAG ENCUMBRANCE_BATCH_NAME ENCUMBRANCE_TYPE_ID ENCUM_TRANSFER_REJ_REASON BUDGET_CCID ENCUMBRANCE_AMOUNT PA_EXPENDITURE_ITEMS_ALL COST_DIST_WARNING_CODE PA_PROJECT_TYPES_ALL BUDGETARY_OVERRIDE_FLAG PA_TRANSACTION_SOURCES PROCESS_FUNDS_CHECK

Obsolete Tables PA_PROJECT_ROLE_TYPES


New Views This view… was created to support this feature… PA_BC_COMMITMENTS Budgetary controls and budget integration PA_BC_PROJECT_V Budgetary controls and budget integration PA_BGT_ACCT_LINES_V Budgetary controls and budget integration PA_BUDGETARY_CONTROL_OPTIONS_V Budgetary controls and budget integration PA_BUDGETARY_CONTROL_PROJ_V Budgetary controls and budget integration PA_BUDGETARY_CONTROL_TASK_V Budgetary controls and budget integration PA_BUDGET_LINES_DIST_V Budgetary controls and budget integration PA_BUDG_CONTROL_RES_GRP_V Budgetary controls and budget integration PA_PROJECT_ROLE_TYPES_VL MLS in roles

Changed Views PA_CDL_BURDEN_DETAIL_V PA_CDL_BURDEN_SUMMARY_V PA_COST_DISTRIBUTION_LINES PA_COST_DISTRIBUTION_LINES_ALL_MRC_V PA_COST_DIST_LINES_MRC_V PA_EXPENDITURE_ITEMS PA_PROJECTS_ALL_BASIC_V PA_PROJECTS_EXPEND_V PA_TRANSACTION_INTERFACE_V

New Indexes This index ... was created on this table ... to support this feature… PA_BC_BALANCES_N2 PA_BC_BALANCES Budgetary controls and budget

integration PA_BC_BALANCES_N3 PA_BC_BALANCES Budgetary controls and budget

integration PA_BC_BALANCES_U1 PA_BC_BALANCES Budgetary controls and budget

integration PA_BC_COMMITMENTS_N1 PA_BC_COMMITMENTS_ALL Budgetary controls and budget





integration PA_BC_COMMITMENTS_U1 PA_BC_COMMITMENTS_ALL Budgetary controls and budget

integration PA_BC_PACKETS_N1 PA_BC_PACKETS Budgetary controls and budget


integration


This index ... was created on this table ... to support this feature… PA_BC_PACKETS_N3 PA_BC_PACKETS Budgetary controls and budget







integration PA_BC_PACKETS_U1 PA_BC_PACKETS Budgetary controls and budget

integration PA_BC_PACKET_ARRIVAL_ ORDER_U1

PA_BC_PACKET_ARRIVAL_ ORDER

Budgetary controls and budget integration

PA_BC_PACKET_ARRIVAL_ ORDER_U2



PA_BC_PACKET_ARRIVAL_ ORDER_U3



PA_BDGTRY_CONTROL_ OPTS_U1

PA_BUDGETARY_CONTROL_ OPTIONS


PA_BUDGETARY_CONTROLS_U1

PA_BUDGETARY_CONTROLS Budgetary controls and budget integration

PA_BUDGET_ACCT_LINES_U1 PA_BUDGET_ACCT_LINES Budgetary controls and budget integration



PA_BUDGET_LINES_N2 PA_BUDGET_LINES Budgetary controls and budget integration

PA_PROJECT_ROLE_TYPES_TL_U1

PA_PROJECT_ROLE_TYPES_TL MLS in roles

PA_PROJECT_ROLE_TYPES_TL_U2

PA_PROJECT_ROLE_TYPES_TL MLS in roles

PA_PROJECT_ROLE_TYPES_B_U1

PA_PROJECT_ROLE_TYPES_B MLS in roles

PA_PROJECT_ROLE_TYPES_B_U2

PA_PROJECT_ROLE_TYPES_B MLS in roles

Obsolete Indexes PA_PROJECT_ROLE_TYPES_U1 PA_PROJECT_ROLE_TYPES_U2


New Sequences This sequence… was added to support this feature… PA_BC_COMMITMENTS_S Budgetary controls and budget integration PA_BC_PACKETS_S Budgetary controls and budget integration PA_BC_PACKET_ARRIVAL_ORDER_S Budgetary controls and budget integration PA_BUDGETARY_CONTROLS_S Budgetary controls and budget integration PA_BUDGET_ACCT_LINES_S Budgetary controls and budget integration


Seed Data This section lists seed data that was added or changed for Oracle Projects in this release.

Changed Menus Menu Name Menu Entry Description of Change Expenditures Transaction Funds Check Results Use this new menu option to access the

Transaction Funds Check Results window. This window enables you to review funds check results for project transactions.

New Profile Options Profile Option Name Description PA: Allow Override of Budget Accounts This profile option is set at the site level. You use this

profile option to specify whether accounts generated by the Project Budget Account workflow process can be manually overridden.

PA: Days to Maintain BC Packets You use this profile option to specify the number of days to maintain funds check results. This option is set at the site level. The default value is 3.

PA: Enable Budget Integration and Budgetary Control Feature

This profile option controls the activation of budgetary controls and budget integration features in Oracle Projects. This option can be set at either the site or application level. The default value is N (no). You must set this value to Y (yes) to enable Oracle Projects budgetary controls and budget integration features.


Chapter 8: Patch Application Steps and Information

This chapter describes the post-upgrade patch application steps for this release.


Post-Upgrade Steps To use the budgetary controls and top-down budget integration features in this release, you must also apply two Oracle General Ledger patches. Apply Oracle General Ledger patch numbers 1995914 and 2002508 after installing the Oracle Projects Mini-pack H patchset. For information on downloading and applying the General Ledger patches, refer to OracleMetalink.


Appendix A: Project Budget Account Workflow Parameters

Budget Entry Level Resource List

Parameter Description Project Top Task

Task Resource Group

Resource Member

Budget Type The type of budget being accounted

X X X NA NA

Budget Version ID The internal ID of the budget version

X X X NA NA

Budget Entry Level Project, top task or lowest task

X X X NA NA

Resource List Flag Indicates if the budget is categorized by a resource list (Y/N)

X X X NA NA

Resource Group Type Resource type of the group assigned to the budget line. This attribute is available only if the resource list has 2 levels.

NA NA NA X NA

Resource Type Resource type of the resource list member

NA NA NA NA X

Project ID The Internal ID of the project

X X X NA NA

Project Number User defined project number

X X X NA NA

Project Organization The project owning organization

X X X NA NA

Project Organization ID

Internal ID of project owning organization

X X X NA NA

Project Type Type of project X X X NA NA

Top Task ID Internal ID of the top task

X X NA NA

Top Task Number The task number of the top task

X X NA NA

Task Service Type Service type of the task

X X NA NA

Task Organization The task owning organization

X X NA NA


Budget Entry Level Resource List

Parameter Description Project Top Task

Task Resource Group

Resource Member

Task Organization ID Internal ID of task owning organization

X X NA NA

Task ID Internal ID of the task X X NA NA

Task Number User defined number of the task

X X NA NA

Resource List Member ID

Internal ID of the resource list member

NA NA NA X X

Person ID Internal ID of budgeted for person

NA NA NA Employee

Employee Number Employee number of budgeted for person

NA NA NA Employee

Expenditure/Revenue Category

Category of budgeted cost or revenue amount

NA NA NA Exp/Rev Category

Exp/Rev Category

Expenditure/Event Type

Type of budget cost amount or revenue event

NA NA NA Exp/Event Type

Job ID Internal ID of job NA NA NA Job

Job Name Name of job NA NA NA Job

Job Group ID Internal ID of job group specified for the resource list

NA NA NA Job

Job Group Name Name of job group specified for the resource list

NA NA NA Job

Organization ID Internal ID of expenditure, non-labor resource or event organization

NA NA NA Org. Org.

Organization Name Name of expenditure, non-labor resource or event organization

NA NA NA Org Org

Organization Type HR type of expenditure, non-labor resource or event organization

NA NA NA Org Org

Supplier ID Internal ID of supplier NA NA NA Supplier

Supplier Name Name of supplier NA NA NA Supplier


Appendix B: Funds Check Result Messages

The following table lists funds check result codes and messages, and provides information on responding to each message.

Result Code

Result Text

Corrective Action

F107 The transaction account and the budget account are different

Ensure that the budget line account and the transaction line account are the same

F108 The transaction failed funds check at the resource level

Increase the budget at the resource level or change the budgetary control level to Advisory or None

F109 The transaction failed funds check at resource group level

Increase the budget at the resource group level or change the budgetary control level to Advisory or None

F110 The transaction failed funds check at the task level

Increase the budget at the task level or change the budgetary control level to Advisory or None

F111 The transaction failed funds check at the top task level

Increase the budget at the top task level or change the budgetary control level to Advisory or None

F112 The transaction failed funds check at the project level

Increase the budget at the project level or change the budgetary control level to Advisory or None

F113 The transaction failed funds check at project account level

Increase the budget amount at the project account level

F114 The transaction failed to populate burden cost

Processing Error

F118 Funds check failed because of invalid budget versions

A baselined budget is required for budgetary controls

F120 Funds check failed during setup and summarization

Processing Error

F121 The resource list is invalid or null The budget should have a resource list if it is categorized by resource

F122 The amount type or boundary code is invalid

Processing Error


Result Code

Result Text

Corrective Action

F123 The amount type or boundary code is invalid for no time phase

When budgeting without time phases, the amount type and boundary code must be Project to Date/Project, respectively

F124 Invalid boundary code for amount type Project To Date

Processing Error - Invalid combination of amount type/boundary code

F125 Invalid boundary code for amount type Year To Date


F127 Invalid boundary code for amount type Period To Date


F128 Funds check failed because of invalid resource list member

Processing Error

F129 Start date or end date is null for the specified date range

Processing Error

F130 Start date or end date is null for the specified PA period

Processing Error

F131 Funds check failed because of invalid budget entry method

Processing Error

F132 Could not map to a budget line while deriving budget account

Processing Error - Ensure that budget lines are generated for all periods

F134 Start date or end date is null for the specified GL period

Processing Error

F135 The encumbrance type is null or invalid Define an encumbrance type in the project budgetary controls options

F136 Funds check failed while calculating start date or end date

Processing Error

F137 No matching requisition was found for this purchase order

Processing Error

F138 No matching purchase order was found for this invoice

Processing Error

F140 Failed due to fatal error while inserting burden cost

Processing Error

F141 Could not acquire lock: funds checks are running concurrently

Record locked by another user

F142 Funds check failed because of unexpected error

Processing Error

F143 Funds check failed because budget baselining is in progress

A funds check cannot be performed until the budget baseline process is complete

F150 The GL funds check failed for the check funds mode

General Ledger funds available failure

F151 The GL funds check encountered fatal errors

General Ledger funds check failure


Result Code

Result Text

Corrective Action

F152 The CBC funds check failed for the check funds mode

CBC funds available failure

F153 The CBC funds check encountered fatal errors

CBC funds check failure

F155 The GL funds check failed for the full mode


F156 The GL funds check failed for the partial mode


F157 The CBC funds check failed for the full mode


F158 The CBC funds check failed for the partial mode


F160 Funds check failed to generate the return code

Processing Error

F161 Funds check failed to create encumbrance liquidation

Processing Error

F162 Funds check failed to update budget account balances

Processing Error

F163 Funds check failed while posting burden cost to GL

Processing Error

F164 Funds check failed while posting burden cost to CBC

Processing Error



Glossary

Actual Transactions Recorded project costs. Examples include labor, expense report, usage, burden, and miscellaneous costs.

Amount Type The starting point for a time interval. Available options include period-to-date, year-to-date, and project-to-date. Used to define budgetary controls for a project.

Boundary Code The end point for a time interval. Available options include period, year, and project. Used to define budgetary controls for a project.

Commitment Transactions Anticipated project costs. Examples include purchase requisitions and purchase orders, provisional and confirmed contract commitments, and supplier invoices.

Control Levels The level of control to impose on project transactions during a funds check. Available options are absolute, advisory, and none. Used to define budgetary controls for a project.

Encumbrance A journal entry to reserve funds for anticipated project costs (commitments). The primary purpose for posting encumbrances is to avoid overspending a budget.

Funds Check The process that verifies a budget’s available funds. When budgetary controls are enabled, a funds check is performed against the project budget for commitment transactions. When top-down budgeting is also enabled, a funds check is performed against the funding budget for the project budget lines.

Liquidation The process of relieving an encumbrance.


Non-Project Budget A budget defined outside Oracle Projects. Examples include organization-level budgets defined in Oracle General Ledger, and budgets defined in Oracle Contract Commitments.

Time Intervals Time intervals define how budget amounts are accumulated to determine the available funds for a transaction. Used to define budgetary controls for a project.


Index

bottom-up budget integration 67 implementation steps 80 integration examples 75 integration procedures 69

bottom-up budgeting overview 68 budget amount entry 24 budget definition strategies 28 budget integration 55

account generation example 63 bottom-up 67 integration procedures 57 overview 56 project budget account workflow 58 top-down 83

budgetary control balance maintenance top-down budget integration 102 top-down budget integration with Oracle Contract

Commitments 127 budgetary control settings 13 budgetary controls 11

budget amount entry 24 budget definition strategies 28 implementation steps 45 maintaining balances 40 overview 12 restriction 44 settings 13 transaction processing 35

definitions of terms (list) 163 funds check result messages, table of 159 implementation steps

bottom-up budget integration 80 budgetary controls 45 top-down budget integration 107 top-down budget integration with Oracle Contract

Commitments 134 integration procedures 57

bottom-up budget integration 69 top-down budget integration 85 top-down budget integration with Oracle Contract

Commitments 113 maintaining budgetary control balances 40 new and changed processes 139 new features overview 9 overview

bottom-up budgeting 68 budget integration 56 budgetary controls 12

top-down budget integration with Oracle Contract Commitments 112

top-down budgeting 84 patch application steps 155 processes

changed 142 new 140

product update notes 145 database objects 150 modules 146 seed data 154

project budget account workflow 58 parameters, table of 157

project budget creation top-down budget integration 92 top-down budget integration with Oracle Contract

Commitments 123 project budget maintenance

top-down budget integration 103 top-down budget integration with Oracle Contract

Commitments 130 top-down budget integration 83

budgetary control balance maintenance 102 implementation steps 107 integration example 88 integration procedures 85 project budget creation 92 project budget maintenance 103 transaction processing 96 year-end processing 105

top-down budget integration with Oracle Contract Commitments 111 budgetary control balance maintenance 127 implementation steps 134 integration procedures 113 overview 112 project budget creation 123 project budget maintenance 130 year-end processing 132

top-down budgeting overview 84 transaction processing 35

top-down budget integration 96 viewing

budgetary control balances 40 transaction fund check results 36

year-end processing top-down budget integration 105 top-down budget integration with Oracle Contract

Commitments 132


Documents

Budgetary Control