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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 The Programs (which include both the software and documentation) contain proprietary information of Oracle Corporation; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent and other intellectual and industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. Oracle Corporation does not warrant that this document is error-free. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without the express written permission of Oracle Corporation. If the Programs are delivered to the US Government or anyone licensing or using the programs on behalf of the US Government, the following notice is applicable: RESTRICTED RIGHTS NOTICE Programs delivered subject to the DOD FAR Supplement are "commercial computer software" and use, duplication, and disclosure of the Programs, including documentation, shall be subject to the licensing restrictions set forth in the applicable Oracle license agreement. Otherwise, Programs delivered subject to the Federal Acquisition Regulations are "restricted computer software" and use, duplication and disclosure of the Programs shall be subject to the restrictions in FAR 52.227-19, Commercial Computer Software Restricted Rights (June, 1987). Oracle Corporation, 500 Oracle Parkway, Redwood City, CA 94065. The Programs are not intended for use in any nuclear, aviation, mass transit, medical, or other inherently dangerous applications. It shall be licensees responsibility to take all appropriate fail-safe, backup, redundancy, and other measures to ensure the safe use of such applications if the Programs are used for such purposes, and Oracle disclaims liability for any damages caused by such use of the Programs. Oracle is a registered trademark, and OracleMetaLink is a trademark or registered trademark of Oracle Corporation. Other names may be trademarks of their respective owners.
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Contents
Preface __________________________________________________________________ 7
Audience______________________________________________________________________ 7 Related Publications ____________________________________________________________ 7 Documentation Accessibility _____________________________________________________ 7 About Oracle __________________________________________________________________ 8 Overview of New Features _______________________________________________________ 9
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
Budgetary Controls Cross Charge Restriction______________________________________ 44 Projects Budgetary Controls Implementation Steps _________________________________ 45
Defining Profile Options for Budgetary Controls ___________________________________________ Defining Control Levels and the Time Interval _____________________________________________ Creating and Baselining an Initial Budget _________________________________________________ Adjusting Default Control Levels _______________________________________________________ 46 47 51 52
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Transaction Processing_________________________________________________________ 96
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Budgetary Control Balance Maintenance_________________________________________ 102 Project Budget Maintenance ___________________________________________________ 103
Project Budgetary Controls ___________________________________________________________ Funding Budget Controls _____________________________________________________________ General Ledger Period Statuses ________________________________________________________ Project Encumbrance Maintenance _____________________________________________________ 103 103 104 104
Budgetary Control Balance Maintenance_________________________________________ 127 Project Budget Maintenance ___________________________________________________ 130
Project Budgetary Controls ___________________________________________________________ Funding Budget Controls _____________________________________________________________ General Ledger Period Statuses ________________________________________________________ Project Encumbrance Maintenance _____________________________________________________ 130 131 131 131
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Appendix A: Project Budget Account Workflow Parameters______________________ 157 Appendix B: Funds Check Result Messages___________________________________ 159 Glossary _______________________________________________________________ 163 Index __________________________________________________________________ 165
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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 Users 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
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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 EBusiness 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 worlds leading supplier of software for information management, and the worlds 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.
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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.
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This chapter describes the new budgetary controls features in Oracle Projects.
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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.
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.
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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.
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.
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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 GL/PA Periods or No Time Phase GL or PA Periods GL or PA Periods GL or PA Periods GL or PA Periods GL or PA Periods
Amount Type Project To Date Project To Date Project To Date Year To Date Year To Date Period To Date Project Year Period Year Period Period
Boundary Code
Note: When budgetary controls are enabled, you cannot enter budget amounts using userdefined date ranges.
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 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 Period Budget Amount Funds Available Transaction Amount 1 1 24 25 2 1 24 3 1 24 4 1 24 5 1 24 Year 1 6 1 24 7 1 24 8 1 24 9 1 24 10 1 24 11 1 24 12 1 24 1 1 24 2 1 24 3 1 24 4 1 24 5 1 24 Year 2 6 1 24 7 1 24 8 1 24 9 1 24 10 1 24 11 1 24 12 1 24
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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 Details Period Budget Amount Funds Available Transaction Amount 1 1 24 24 2 1 24 3 1 24 4 1 24 5 1 24 Year 1 6 1 24 7 1 24 8 1 24 9 1 24 10 1 24 11 1 24 12 1 24 1 1 24 2 1 24 3 1 24 4 1 24 5 1 24 Year 2 6 1 24 7 1 24 8 1 24 9 1 24 10 1 24 11 1 24 12 1 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 Details Period Budget Amount Funds Available Transaction Amount 1 1 12 2 1 12 3 1 12 4 1 12 5 1 12 Year 1 6 1 12 7 1 12 8 1 12 9 1 12 10 1 12 11 1 12 12 1 12 24 1 1 24 2 1 24 3 1 24 4 1 24 5 1 24 Year 2 6 1 24 7 1 24 8 1 24 9 1 24 10 1 24 11 1 24 12 1 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 Details Period Budget Amount Funds Available Transaction Amount 1 1 12 2 1 12 3 1 12 4 1 12 5 1 12 Year 1 6 1 12 7 1 12 8 1 12 9 1 12 10 1 12 11 1 12 12 1 12 1 1 24 24 2 1 24 3 1 24 4 1 24 5 1 24 Year 2 6 1 24 7 1 24 8 1 24 9 1 24 10 1 24 11 1 24 12 1 24
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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 Details Period Budget Amount Funds Available Transaction Amount 1 1 1 2 1 2 3 1 3 4 1 4 5 1 5 Year 1 6 1 6 7 1 7 8 1 8 9 1 9 10 1 10 11 1 11 12 1 12 1 1 13 2 1 14 3 1 15 4 1 16 5 1 17 Year 2 6 1 18 7 1 19 8 1 20 9 1 21 10 1 22 11 1 23 24 12 1 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 Details Period Budget Amount Funds Available Transaction Amount 1 1 1 2 1 2 3 1 3 4 1 4 5 1 5 Year 1 6 1 6 7 1 7 8 1 8 9 1 9 10 1 10 11 1 11 12 1 12 1 1 13 2 1 14 3 1 15 4 1 16 5 1 17 Year 2 6 1 18 7 1 19 8 1 20 9 1 21 10 1 22 11 1 23 12 1 24 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 Details Period Budget Amount Funds Available Transaction Amount 1 1 12 2 1 12 3 1 12 4 1 12 5 1 12 Year 1 6 1 12 7 1 12 8 1 12 9 1 12 10 1 12 11 1 12 12 1 12 1 1 12 13 2 1 12 3 1 12 4 1 12 5 1 12 Year 2 6 1 12 7 1 12 8 1 12 9 1 12 10 1 12 11 1 12 12 1 12
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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 Details Period Budget Amount Funds Available Transaction Amount 1 1 12 2 1 12 3 1 12 4 1 12 5 1 12 Year 1 6 1 12 7 1 12 8 1 12 9 1 12 10 1 12 11 1 12 12 1 12 1 1 12 12 2 1 12 3 1 12 4 1 12 5 1 12 Year 2 6 1 12 7 1 12 8 1 12 9 1 12 10 1 12 11 1 12 12 1 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 Details Period Budget Amount Funds Available Transaction Amount 1 1 1 2 1 2 3 1 3 4 1 4 5 1 5 Year 1 6 1 6 7 1 7 8 1 8 9 1 9 10 1 10 11 1 11 12 1 12 1 1 1 2 1 2 3 1 3 4 1 4 5 1 5 Year 2 6 1 6 7 1 7 8 1 8 9 1 9 10 1 10 11 1 11 12 12 1 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 Details Period Budget Amount Funds Available Transaction Amount 1 1 1 2 1 2 3 1 3 4 1 4 5 1 5 Year 1 6 1 6 7 1 7 8 1 8 9 1 9 10 1 10 11 1 11 12 1 12 1 1 1 2 1 2 3 1 3 4 1 4 5 1 5 Year 2 6 1 6 7 1 7 8 1 8 9 1 9 10 1 10 11 1 11 10 12 1 12
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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 Details Period Budget Amount Funds Available Transaction Amount 1 1 1 2 1 1 3 1 1 4 1 1 5 1 1 Year 1 6 1 1 7 1 1 8 1 1 9 1 1 10 1 1 11 1 1 12 1 1 1 1 1 2 1 1 3 1 1 4 1 1 5 1 1 Year 2 6 1 1 7 1 1 8 1 1 9 1 1 10 1 1 11 1 1 12 1 1 2
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 Details Period Budget Amount Funds Available Transaction Amount 1 1 1 2 1 1 3 1 1 4 1 1 5 1 1 Year 1 6 1 1 7 1 1 8 1 1 9 1 1 10 1 1 11 1 1 12 1 1 1 1 1 2 1 1 3 1 1 4 1 1 5 1 1 Year 2 6 1 1 7 1 1 8 1 1 9 1 1 10 1 1 11 1 1 12 1 1 1
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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:
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.
Budget Entry Level Project Project Top Task Top Task Lowest Task Lowest Task Top and Lowest Task Top and Lowest Task
Project Level Available Available Available Available Available Available Available Available
Task Level Unavailable Unavailable Available Available Available Available Available Available
Unavailable Unavailable
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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.
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Details Budgetary Control Setting Total Budget Transaction 1 Available Funds Transaction 2
Resource A1
Resource A2
$15 $5 $10
Passed
Failed
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Details Budgetary Control Setting Total Budget Transaction 1 Available Funds Transaction 2
Top Task 1
Absolute $80 Passed with Advisory Warning $45 $35 Passed $40 Failed Passed
$40 $40
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For more information on accounting for burden costs, see: Oracle Projects User Guide.
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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.
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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.
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Budget Entry Method Fremont Corporation defines the following budget entry method for use with projects with budgetary controls enabled: Budget Entry Method Attribute Name Entry Level Categorized by Resource Time Phases by Cost Enterable Fields Revenue Enterable Fields Budget Entry Method Attribute Value Project by GL Period/Category Project Yes GL Period Burdened Cost None
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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 Labor Material Travel Expenses Labor Material Travel Expenses Alias Order 1 2 3 4
Resource List: Commitment Resources Group Resources By: Expenditure Category Resource Groups: Resource Groups Contractor Expenses Alias Contractor Expenses Order 1 2
Resources: Resource Type Supplier Supplier Supplier Expenditure Type Expenditure Type Resource Capp Consulting GE Plastics Allied Manufacturing Consulting Supplies Alias Capp Consulting GE Plastics Allied Manufacturing Consulting Supplies Order 1 2 3 4 5
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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 Fremonts financial managers for approval of the anticipated costs of Project A: Project A Approved Cost Budget Resource Labor Material Expenses Travel Budget Amount 150,000 150,000 50,000 25,000
The financial managers approve the budget, but inform Mr. Smith that he must ensure that the projects 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 Contractor Contractor Expenses Resources Capp Consulting Consulting Budget Amount 15,000 25,000 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.
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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.
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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 Fremonts financial managers for approval of the anticipated costs of Project B: Project B Approved Cost Budget Resource Group Labor Material Travel Expenses Expenses Expenses Capp Consulting Unclassified Supplies Resource Budget Amount 150,000 150,000 25,000 15,000 25,000 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. Fremonts financial managers approve the budget submitted by Mr. Turner. However, they advise him that he must ensure that the projects 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 projects 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.
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He then baselines the projects 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.
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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.
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.
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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.
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"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.
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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 Project Top Task Task Resource Group Resource Expend Organization Expenditure Category Expenditure Type Expenditure Date G/L Date Packet ID Status Source Document Type Amount Version Number Budget Version Budget Type Budget Status Source Document Project Top task Task Resource group Resource Expenditure organization Expenditure category Expenditure type Expenditure date
Description
G/L date associated with the transaction Identifier assigned to the budgetary control packet Funds check status Source of the commitment transaction Type of document (for example, purchase requisition) Transaction amount Budget version number Budget version name Budget type Budget status Source document reference (for example, PO number)
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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
Field Name Account Budget Actuals Commitments Available Balance Transaction Amount New Available Balance Funds Check Results
Description Identifies the account when budget integration is used Budget amount total used for funds check based on the defined budgetary control time interval Commitment transactions interfaced to Projects Approved commitment transactions not yet interfaced to Projects Available funds prior to the funds check for the selected transaction Amount of the selected transaction Available balance after the funds check for the selected transaction Funds check status information
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Choose the Commitments button to display the commitments total summarized by commitment type for a selected line.
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"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.
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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
Field Name Project Number Project Name Budget Type Budget Status Budget Version Project Project name Budget type Budget status Budget version name
Description
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
Field Name Control Level Budget Actuals Commitments Funds Available Start Date End Date Result
Description Budgetary control level for a budget line Budget amount for a budget line Commitment transactions interfaced to Projects Approved commitment transactions not yet interfaced to Projects Available funds (budget amount less actuals and commitments) based on the defined time interval Beginning period date for amounts in a budget line Ending period date for amounts in a budget line 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
Description Amount of purchase requisition commitments recorded against a budget line Amount of purchase order commitments recorded against a budget line Amount of supplier invoices recorded against a budget line that have not been interfaced from Oracle Payables to Projects Total commitments for a budget line
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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.
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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.
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"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.
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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.
"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 TopDown 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.
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Resource
Capp Consulting Consolidated Construction Turner Enterprises Employees Marlin, Ms. Amy Gray, Mr. Dick
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"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.
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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
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"To adjust budgetary control levels: 1. Navigate to the Budgets window from the Projects Navigator. 2. Query your project cost budget. 3. Choose the History button to view the budget version history. 4. Select Budgetary Controls from the Tools menu. 5. Change control level values as required. 6. Save your work.
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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. 3. Choose the History button to view the budget version history. 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.
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This chapter describes the new budget integration features in Oracle Projects.
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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.
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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.
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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 Task Number Resource Period Name Burdened Cost Revenue Account Account Description
Field Type Display only Display only Display only Display only Display only Display and update Display only Task Resource
Description
Budget entry period name Budget cost amount (if applicable) Budget revenue amount (if applicable) Generated or manually entered account 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.
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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.
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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
Field Name Account Period Name Prior Budget Amount Prior Available Amount Current Budget Amount Current Available Amount Accounted Amount Status Result Account Description
Description Generated or manually entered account Budget entry period name Budget amount for the previous budget version Available funds for the previous budget version Budget amount for the current budget version Available funds for the current budget version Difference between the available amounts for the prior and current budget versions Indicates whether the funds check passed or failed Status message for the funds check results 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
Field Name Task Number Resource Period Name Burdened Cost Revenue Task Resource Budget entry period name
Description
Budget cost amount (if applicable) 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.
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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.
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Owning Organization/Company Lookup Set Intermediate Value Administration Engineering Construction Services Segment Value 01 02 03 04
Expenditure Organization/Cost Center Lookup Set Intermediate Value Consulting Administration Executive Office Finance Information Services Segment Value 420 520 710 720 830
Revenue Organization/Cost Center Lookup Set Intermediate Value Consulting Administration Executive Office Information Services Segment Value 420 520 710 830
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Expenditure Category/Account Lookup Set Intermediate Value Supplies Computer Services Construction Consulting Labor Expenses Segment Value 7490 7520 7560 7570 7580 7640
Revenue Category/Account Lookup Set Intermediate Value Support Revenue Consulting Revenue Training Revenue Miscellaneous Revenue Segment Value 4120 4130 4140 4150
The account generation results, shown below, validate the customizations and lookup set definitions. Administration Project A Cost Budget Expenditure Organization Consulting Administration Information Services Expenditure Category Expenses Supplies Labor Jan-01 Amount 100 100 100 Account 01-420-7640-000 01-520-7490-000 01-830-7580-000
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This chapter describes the new bottom-up budget integration feature in Oracle Projects.
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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.
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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.
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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.
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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.
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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.
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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.
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2001/Q4 Services Forecast Revenue Budget Account 04-420-4120-000 04-420-4130-000 04-420-4140-000 04-420-4150-000 04-520-4120-000 04-520-4130-000 04-520-4140-000 04-520-4150-000 04-710-4130-000 Oct-01 1,000 5,000 2,000 500 1,000 5,000 2,000 500 1,000 Nov-01 1,000 5,000 2,000 500 1,000 5,000 2,000 500 1,000 Dec-01 1,000 5,000 2,000 500 1,000 5,000 2,000 500 1,000
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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:
Amount
Account
500 04-830-4130-000 500 04-830-4130-000 500 04-420-4140-000 500 04-420-4140-000 500 04-420-4120-000
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Credit
Note: Oracle General ledger does not require balanced budget journal entries.
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In this example, account 01-710-7050-000 has the following balances: Account 01-710-7050-000 GL Period Jan-01 Budget Balance 0 Encumbrance Balance 0 Actual Balance 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 1.1 1.2 Jan-01 1,000 1,000 Feb-01 1,000 1,000 Mar-01 Account 1,000 01-710-7050-000 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: Account 01-710-7050-000 GL Period Jan-01 Budget Balance 2,000 Encumbrance Balance 0 Actual Balance 0
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Transactions are entered against the account and accounted in General Ledger. The resulting balances are as follows: Account 01-710-7050-000 GL Period Jan-01 Budget Balance 2,000 Encumbrance Balance 1,000 Actual Balance 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 1.1 1.2 Jan-01 500 500 Feb-01 1,000 1,000 Mar-01 Account 1,000 01-710-7050-000 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.
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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.
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"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.
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"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.
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This chapter describes the new top-down budget integration feature in Oracle Projects.
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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.
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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 projects 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.
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Chart A
Chart B
Chart C
Project Reservation
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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
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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 Expenditure Organization Information Services Administration Consulting Consulting Expenditure Category Labor Labor Labor Expenses Oct-01 4,000 500 1,000 1,000 Nov-01 4,000 500 1,000 1,000 Dec-01 4,000 500 1,000 1,000
The vice president of the Services organization receives Mr. Smiths 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 5,000 5,000 Actual Costs 2,000 2,000 Committed Costs 1,000 1,000 Available Funds 3,000 3,000
November 2001 Account Description Budgeted Funds 5,000 5,000 Actual Costs 0 0 Committed Costs 3,000 3,000 Available Funds 2,000 2,000
December 2001 Account Description Budgeted Funds 5,000 5,000 Actual Costs 0 0 Committed Costs 1,000 1,000 Available Funds 4,000 4,000
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.
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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 Expenditure Organization Consulting Consulting Expenditure Category Labor Expenses Oct-01 1,000 1,000 Nov-01 1,000 1,000 Dec-01 1,000 1,000
When Mr. Smith submits the commitment budget for baselining, accounts are assigned to the budget lines as follows: Expenditure Organization Consulting Consulting Consulting Consulting Consulting Consulting Expenditure Category Labor Labor Labor Expenses Expenses Expenses GL Period Oct-01 Nov-01 Dec-01 Oct-01 Nov-01 Dec-01 Budget Amount Account
1,000 04-420-7580-000 1,000 04-420-7580-000 1,000 04-420-7580-000 1,000 04-420-7640-000 1,000 04-420-7640-000 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 Oct-01 Oct-01 Oct-01 Nov-01 Nov-01 Nov-01 Dec-01 Dec-01 Dec-01 Account 04-420-7580-000 04-420-7640-000 04-000-1250-000 04-420-7580-000 04-420-7640-000 04-000-1250-000 04-420-7580-000 04-420-7640-000 04-000-1250-000 1,000 1,000 2,000 1,000 1,000 2,000 Debit 1,000 1,000 2,000 Credit
Note: The 04-000-1250-000 account is defined as the reserve for encumbrance account in Oracle General Ledger.
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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 Account Description Budgeted Funds 5,000 5,000 Actual Costs 2,000 2,000 Committed Costs 2,000 2,000 Available Funds 2,000 2,000
November 2001 Account Description Budgeted Funds 5,000 5,000 Actual Costs 0 0 Committed Costs 4,000 4,000 Available Funds 1,000 1,000
December 2001 Account Description Budgeted Funds 5,000 5,000 Actual Costs 0 0 Committed Costs 2,000 2,000 Available Funds 3,000 3,000
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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.
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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.
validates the submitted budget version creates budget lines for missing budget category and budget period combinations 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.
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Baseline Validations
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. 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. 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.
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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 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.
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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.
Project Encumbrance
Commitment Encumbrance
Obligation Encumbrance
Invoice Encumbrance
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.
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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.
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.
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In this example, the project budget shown below is baselined: Task T1.0 Resource Group Suppliers Resource Capp Construction Budget Amount Account
1,000 A1
The following encumbrance line is generated by the baseline process: Line 1 Encumbrance Type PA Encumbrance Account A1 Description Capp Construction Budget Line Account Debit 1,000 Credit
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: Line 1 2 3 Encumbrance Type PA Encumbrance Invoice Encumbrance Invoice Encumbrance Account A1 A1 B1 Description Capp Construction Budget Line Account Capp Construction Budget Line Account Invoice Line Account 57.50 50.00 Debit Credit 57.50
Oracle Payables interfaces raw costs to Oracle General Ledger. The following encumbrance line is created: Line 1 Encumbrance Type Invoice Encumbrance Account B1 Description Invoice Line Account Debit Credit 50.00
Oracle Projects interfaces burden costs to Oracle General Ledger. The following encumbrance line is created: Line 1 Encumbrance Type Invoice Encumbrance Account A1 Description Capp Construction Budget Line Account Debit Credit 57.50
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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.
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In this example, the project budget shown below is baselined: Task T1.0 T1.0 T1.0 Resource Group Suppliers Overhead Overhead Resource Capp Construction Material Handling R&D Budget Amounts Account
1,000 A1 50 A2 100 A3
The following encumbrance lines are generated by the baseline process: Line 1 Encumbrance Type PA Encumbrance Account A1 Description Budget Line Account for Resource: Capp Construction Budget Line Account for Resource: Material Handling Budget Line Account for Resource: R&D Debit 1,000 Credit
PA Encumbrance
A2
50
PA Encumbrance
A3
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: Line 1 2 3 4 5 6 Encumbrance Type PA Encumbrance PA Encumbrance PA Encumbrance Invoice Encumbrance Invoice Encumbrance Invoice Encumbrance Account A1 A2 A3 A1 A2 A3 Description Budget Line and Invoice Line Account Material Handling Budget Line Account R&D Budget Line Account Budget Line and Invoice Line Account Material Handling Budget Line Account R&D Budget Line Account 50.00 2.50 5.00 Debit Credit 50.00 2.50 5.00
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The invoice is interfaced to General Ledger. The following encumbrance line is created: Line 1 Encumbrance Type Invoice Encumbrance Account A1 Description Budget Line and Invoice Line Account Debit Credit 50.00
Oracle Projects interfaces burden costs to General Ledger. The following encumbrance lines are created: Line 1 2 Encumbrance Type Invoice Encumbrance Invoice Encumbrance Account A2 A3 Description Material Handling Budget Line Account R&D Budget Line Account Debit Credit 2.50 5.00
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"To review outstanding commitment balances and invoiced amounts (actuals) for a project: 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 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.
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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
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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.
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.
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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 DEC-01 DEC-01 JAN-02 JAN-02 Budget GL Funding GL Funding GL Funding GL Funding Encumbrance Type PA Encumbrance PA Encumbrance PA Encumbrance PA Encumbrance Account 01-422-7550-000 01-422-7760-000 01-422-7550-000 01-422-7760-000 5,000 2,000 Debit Credit 5,000 2,000
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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.
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"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.
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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.
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"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.
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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
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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.
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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 projects actual costs. The project budget associated with the Contract Commitments funding budget controls the projects 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.
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Project Encumbrance
Commitment Encumbrance
Actual Encumbrance
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.
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Project Encumbrance
Commitment Encumbrance
Obligation Encumbrance
Invoice Encumbrance
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.
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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 01-422-7550-000 Budget Amount 300,000 Project Encumbrance 0 Commitment Amount 0 Actual Amount 0 Available Funds 300,000
General Ledger Funding Budget The balances for the standard budget defined in Oracle General Ledger are as follows: January 2001 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 0 Commitment Amount 0 Actual Amount 0 Available Funds 100,000
January 2002 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 0 Commitment Amount 0 Actual Amount 0 Available Funds 100,000
January 2003 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 0 Commitment Amount 0 Actual Amount 0 Available Funds 100,000
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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:
GL Period Jan-01
Amount 30,000
Account 01-422-7550-000
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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.
Contract Commitments Funding Budget The balances for the commitment budget defined in Oracle Contract Commitments are as follows: January 2001 Account 01-422-7550-000 Budget Amount 300,000 Project Encumbrance 30,000 Commitment Amount 0 Actual Amount 0 Available Funds 270,000
General Ledger Funding Budget The balances for the standard budget defined in Oracle General Ledger are as follows: January 2001 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 15,000 Commitment Amount 0 Actual Amount 0 Available Funds 85,000
January 2002 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 10,000 Commitment Amount 0 Actual Amount 0 Available Funds 90,000
January 2003 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 5,000 Commitment Amount 0 Actual Amount 0 Available Funds 95,000
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Commitment Transaction Encumbrance The project-related contract commitment transaction shown below is approved in January, 2001 for research assistance costs.
Account 01-422-7550-000
Payment Date
January 2001 Account 01-422-7550-000 Budget Amount 300,000 Project Encumbrance 28,200 Commitment Amount 1,800 Actual Amount 0 Available Funds 270,000
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January 2001 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 14,100 Commitment Amount 900 Actual Amount 0 Available Funds 85,000
January 2002 Account 01-422-7550-000 January 2003 Account 01-422-7550-000 Budget Amount 100,000 Project Encumbrance 4,700 Commitment Amount 300 Actual Amount 0 Available Funds 95,000 Budget Amount 100,000 Project Encumbrance 9,400 Commitment Amount 600 Actual Amount 0 Available Funds 90,000
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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.
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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.
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 optionally, activates the budget workflow for controlling budget status changes 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. For additional information about viewing workflow notifications, refer to the Oracle Workflow Guide.
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Baseline Validations
Additional validations are performed during the project baseline process when you define budget integration with Oracle Contract Commitments.
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 budgets contain new or changed budget amounts for closed GL periods.
The journal entry violates the defined budgetary controls. 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.
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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 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.
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"To review all approved commitments for a project: 1. Navigate to the Budgets window from the Projects Navigator. 2. Query the project commitment budget. 3. Choose the History button to view the budget version history. 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.
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Commitment Amounts Window Choose the Commitments button on the Budget Funds Check Results window to view the commitment details for a selected budget line.
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"To review outstanding commitment balances and invoiced amounts (actuals) for a project: 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 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.
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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
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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.
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 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.
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Year-End Cost Budget Balances Account 01-422-7550-000 01-422-7760-000 Budget Amounts 60,000 60,000 Actual Balance 50,000 40,000 Commitment Balance 5,000 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 DEC-01 DEC-01 JAN-02 JAN-02 Budget GL Funding GL Funding GL Funding GL Funding Encumbrance Type PA Encumbrance PA Encumbrance PA Encumbrance PA Encumbrance Account 01-422-7550-000 01-422-7760-000 01-422-7550-000 01-422-7760-000 5,000 2,000 Dr Amount Cr Amount 5,000 2,000
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 DEC-01 DEC-01 JAN-02 JAN-02 Budget Encumbrance Type Account 01-422-7550-000 01-422-7760-000 01-422-7550-000 01-422-7760-000 5,000 2,000 Dr Amount Cr Amount 5,000 2,000
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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.
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"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.
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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 NonProject 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.
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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 NonProject 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.
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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.
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This chapter describes new and changed concurrent processes that support budgetary controls and budget integration in Oracle Projects.
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New Processes
The following new processes have been added to support budgetary controls and budget integration:
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.
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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 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.
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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
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This chapter describes the technical changes made to Oracle Projects in this release.
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Modules
This section lists the modules that were added or changed for Oracle Projects in this release.
New Forms
Form Name Budgetary Control (PAXBUBCL) Description After a project budget is baselined, you can use this form to review and update the default control level settings for each budget level. Use this form to view budgetary control balances for a project. This form enables you to review funds check results for transactions.
Budget Funds Check Results (PAXBLRSL) Transaction Funds Check Results (PAXTRFCK)
Changed Forms
Form Name Budgets (PAXBUEBU) Description of Change 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 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. The new Budgetary Control option enables you to define budgetary control and budget integration settings for a project template or project. A new column, Control Levels, enables you to define default control level settings for resource groups and resources.
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New Windows
Window Name Budget Account Details (PAXBUEBU.ACCT_INFO) Description 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. 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.
Budget Integration
(PABDINTG.BDGTRY_CNTRL_OPTS)
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 Year End Budget Rollover - Success Report Description 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. 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.
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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 PA_BC_BALANCES PA_BC_COMMITMENTS_ALL PA_BC_PACKETS PA_BC_PACKET_ARRIVAL_ORDER PA_BUDGETARY_CONTROLS PA_BUDGETARY_CONTROL_OPTIONS PA_BUDGET_ACCT_LINES PA_PROJECT_ROLE_TYPES_B PA_PROJECT_ROLE_TYPES_TL was added to support this feature Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration MLS in roles MLS in roles
Changed Tables
The following new columns were added to existing tables:
Table Name PA_BUDGET_LINES New Columns COST_REJECTION_CODE REVENUE_REJECTION_CODE BURDEN_REJECTION_CODE OTHER_REJECTION_CODE CODE_COMBINATION_ID CCID_GEN_STATUS_CODE CCID_GEN_REJ_MESSAGE LIQUIDATE_ENCUM_FLAG ENCUMBRANCE_BATCH_NAME ENCUMBRANCE_TYPE_ID ENCUM_TRANSFER_REJ_REASON BUDGET_CCID ENCUMBRANCE_AMOUNT COST_DIST_WARNING_CODE BUDGETARY_OVERRIDE_FLAG PROCESS_FUNDS_CHECK
PA_COST_DISTRIBUTION_LINES_ALL
Obsolete Tables
PA_PROJECT_ROLE_TYPES
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New Views
This view PA_BC_COMMITMENTS PA_BC_PROJECT_V PA_BGT_ACCT_LINES_V PA_BUDGETARY_CONTROL_OPTIONS_V PA_BUDGETARY_CONTROL_PROJ_V PA_BUDGETARY_CONTROL_TASK_V PA_BUDGET_LINES_DIST_V PA_BUDG_CONTROL_RES_GRP_V PA_PROJECT_ROLE_TYPES_VL was created to support this feature Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration 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 ... PA_BC_BALANCES_N2 PA_BC_BALANCES_N3 PA_BC_BALANCES_U1 PA_BC_COMMITMENTS_N1 PA_BC_COMMITMENTS_N2 PA_BC_COMMITMENTS_N3 PA_BC_COMMITMENTS_N4 PA_BC_COMMITMENTS_N5 PA_BC_COMMITMENTS_U1 PA_BC_PACKETS_N1 PA_BC_PACKETS_N2 was created on this table ... PA_BC_BALANCES PA_BC_BALANCES PA_BC_BALANCES PA_BC_COMMITMENTS_ALL PA_BC_COMMITMENTS_ALL PA_BC_COMMITMENTS_ALL PA_BC_COMMITMENTS_ALL PA_BC_COMMITMENTS_ALL PA_BC_COMMITMENTS_ALL PA_BC_PACKETS PA_BC_PACKETS to support this feature Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration
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This index ... PA_BC_PACKETS_N3 PA_BC_PACKETS_N4 PA_BC_PACKETS_N5 PA_BC_PACKETS_N6 PA_BC_PACKETS_N7 PA_BC_PACKETS_N8 PA_BC_PACKETS_N9 PA_BC_PACKETS_U1 PA_BC_PACKET_ARRIVAL_ ORDER_U1 PA_BC_PACKET_ARRIVAL_ ORDER_U2 PA_BC_PACKET_ARRIVAL_ ORDER_U3 PA_BDGTRY_CONTROL_ OPTS_U1 PA_BUDGETARY_CONTROLS_ U1 PA_BUDGET_ACCT_LINES_U1 PA_BUDGET_ACCT_LINES_U2 PA_BUDGET_ACCT_LINES_U3 PA_BUDGET_LINES_N2 PA_PROJECT_ROLE_TYPES_TL_ U1 PA_PROJECT_ROLE_TYPES_TL_ U2 PA_PROJECT_ROLE_TYPES_B_ U1 PA_PROJECT_ROLE_TYPES_B_ U2
was created on this table ... PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKETS PA_BC_PACKET_ARRIVAL_ ORDER PA_BC_PACKET_ARRIVAL_ ORDER PA_BC_PACKET_ARRIVAL_ ORDER PA_BUDGETARY_CONTROL_ OPTIONS PA_BUDGETARY_CONTROLS PA_BUDGET_ACCT_LINES PA_BUDGET_ACCT_LINES PA_BUDGET_ACCT_LINES PA_BUDGET_LINES PA_PROJECT_ROLE_TYPES_TL PA_PROJECT_ROLE_TYPES_TL PA_PROJECT_ROLE_TYPES_B PA_PROJECT_ROLE_TYPES_B
to support this feature Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration MLS in roles MLS in roles MLS in roles MLS in roles
Obsolete Indexes
PA_PROJECT_ROLE_TYPES_U1 PA_PROJECT_ROLE_TYPES_U2
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New Sequences
This sequence PA_BC_COMMITMENTS_S PA_BC_PACKETS_S PA_BC_PACKET_ARRIVAL_ORDER_S PA_BUDGETARY_CONTROLS_S PA_BUDGET_ACCT_LINES_S was added to support this feature Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration Budgetary controls and budget integration
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Seed Data
This section lists seed data that was added or changed for Oracle Projects in this release.
Changed Menus
Menu Name Expenditures Menu Entry Transaction Funds Check Results Description of Change 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.
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This chapter describes the post-upgrade patch application steps for this release.
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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.
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Budget Entry Level Parameter Budget Type Budget Version ID Budget Entry Level Resource List Flag Description The type of budget being accounted The internal ID of the budget version Project, top task or lowest task Indicates if the budget is categorized by a resource list (Y/N) Resource type of the group assigned to the budget line. This attribute is available only if the resource list has 2 levels. Resource type of the resource list member The Internal ID of the project User defined project number The project owning organization Internal ID of project owning organization Type of project Internal ID of the top task The task number of the top task Service type of the task The task owning organization Project X X X X Top Task X X X X Task X X X X
NA
NA
NA
NA
Resource Type Project ID Project Number Project Organization Project Organization ID Project Type Top Task ID Top Task Number Task Service Type Task Organization
NA X X X X X
NA X X X X X X X X X
NA X X X X X X X X X
NA NA NA NA NA NA NA NA NA NA
X NA NA NA NA NA NA NA NA NA
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Budget Entry Level Parameter Task Organization ID Task ID Task Number Resource List Member ID Person ID Employee Number Expenditure/Revenue Category Expenditure/Event Type Job ID Job Name Job Group ID Description Internal ID of task owning organization Internal ID of the task User defined number of the task Internal ID of the resource list member Internal ID of budgeted for person Employee number of budgeted for person Category of budgeted cost or revenue amount Type of budget cost amount or revenue event Internal ID of job Name of job Internal ID of job group specified for the resource list Name of job group specified for the resource list Internal ID of expenditure, nonlabor resource or event organization Name of expenditure, non-labor resource or event organization HR type of expenditure, nonlabor resource or event organization Internal ID of supplier Name of supplier NA NA NA NA Project Top Task X X X NA NA NA NA Task X X X NA NA NA NA
Resource List Resource Group NA NA NA X Resource Member NA NA NA X Employee Employee Exp/Rev Category Exp/Rev Category Exp/Event Type Job Job Job
NA
NA
NA
NA NA NA
NA NA NA
NA NA NA
NA
NA
NA
Job
Organization ID
NA
NA
NA
Org.
Org.
Organization Name
NA
NA
NA
Org
Org
Organization Type
NA
NA
NA
Org
Org
NA NA
NA NA
NA NA
Supplier Supplier
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The following table lists funds check result codes and messages, and provides information on responding to each message.
Result Text The transaction account and the budget account are different The transaction failed funds check at the resource level The transaction failed funds check at resource group level The transaction failed funds check at the task level The transaction failed funds check at the top task level The transaction failed funds check at the project level The transaction failed funds check at project account level The transaction failed to populate burden cost Funds check failed because of invalid budget versions Funds check failed during setup and summarization The resource list is invalid or null The amount type or boundary code is invalid
Corrective Action Ensure that the budget line account and the transaction line account are the same Increase the budget at the resource level or change the budgetary control level to Advisory or None Increase the budget at the resource group level or change the budgetary control level to Advisory or None Increase the budget at the task level or change the budgetary control level to Advisory or None Increase the budget at the top task level or change the budgetary control level to Advisory or None Increase the budget at the project level or change the budgetary control level to Advisory or None Increase the budget amount at the project account level Processing Error A baselined budget is required for budgetary controls Processing Error The budget should have a resource list if it is categorized by resource Processing Error
F109
F110
F111
F112
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Result Text The amount type or boundary code is invalid for no time phase Invalid boundary code for amount type Project To Date Invalid boundary code for amount type Year To Date Invalid boundary code for amount type Period To Date Funds check failed because of invalid resource list member Start date or end date is null for the specified date range Start date or end date is null for the specified PA period Funds check failed because of invalid budget entry method Could not map to a budget line while deriving budget account Start date or end date is null for the specified GL period The encumbrance type is null or invalid Funds check failed while calculating start date or end date No matching requisition was found for this purchase order No matching purchase order was found for this invoice Failed due to fatal error while inserting burden cost Could not acquire lock: funds checks are running concurrently Funds check failed because of unexpected error Funds check failed because budget baselining is in progress The GL funds check failed for the check funds mode The GL funds check encountered fatal errors
Corrective Action When budgeting without time phases, the amount type and boundary code must be Project to Date/Project, respectively Processing Error - Invalid combination of amount type/boundary code Processing Error - Invalid combination of amount type/boundary code Processing Error - Invalid combination of amount type/boundary code Processing Error Processing Error Processing Error Processing Error Processing Error - Ensure that budget lines are generated for all periods Processing Error Define an encumbrance type in the project budgetary controls options Processing Error Processing Error Processing Error Processing Error Record locked by another user Processing Error A funds check cannot be performed until the budget baseline process is complete General Ledger funds available failure General Ledger funds check failure
F124 F125 F127 F128 F129 F130 F131 F132 F134 F135 F136 F137 F138 F140 F141 F142 F143 F150 F151
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Result Code F152 F153 F155 F156 F157 F158 F160 F161 F162 F163 F164
Result Text The CBC funds check failed for the check funds mode The CBC funds check encountered fatal errors The GL funds check failed for the full mode The GL funds check failed for the partial mode The CBC funds check failed for the full mode The CBC funds check failed for the partial mode Funds check failed to generate the return code Funds check failed to create encumbrance liquidation Funds check failed to update budget account balances Funds check failed while posting burden cost to GL Funds check failed while posting burden cost to CBC
Corrective Action CBC funds available failure CBC funds check failure General Ledger funds available failure General Ledger funds available failure CBC funds available failure CBC funds available failure Processing Error Processing Error Processing Error Processing Error Processing Error
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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 budgets 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.
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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.
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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
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