You can enter a Tolerance Percent and aTolerance Amount to allow transactions to exceed budget within certain tolerances. For each distribution in a transaction, you can exceed a budget by the smaller of the tolerance amount and tolerance percent.
You can enter zero for both Tolerance Percent and Tolerance Amount to prevent transactions from exceeding a budget.
Tolerances apply to individual distribution amounts by transaction. Use caution in setting up tolerances. When funds available go negative because of tolerances, the system uses only tolerance amounts to calculate funds available.
Note: For a public sector site, tolerances are designed to work only in an encumbrance accounting environment and not in a budgetary accounting environment. Thus, tolerances are not applicable to budgetary accounts.
Suggestion: Tolerances apply on a per distribution, per transaction basis for funds reservation and for funds checking. You can enter a small tolerance and use Oracle Alert to notify you when you are actually over budget. Then you can change the tolerances or perform a budget transfer to cover the shortfall.