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

Overview of Bottom-Up Budget Integration

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

When you submit a bottom-up integrated budget to create a baseline version, Oracle Projects validates the submitted budget version, creates a baseline version, generates accounting events, creates budget journal entries in final mode for the accounting events in Oracle Subledger Accounting, and validates the budget amounts against an organization-level Oracle General Ledger budget. You run the process PRC: Transfer Journal Entries to GL to transfer budget journal entries from Oracle Subledger Accounting to Oracle General Ledger. When you submit the process PRC: Transfer Journal Entries to GL, you can optionally choose to have the process post the journal entries. Otherwise, you can manually post the journal entries in Oracle General Ledger.

Overview of Top-Down Budget Integration

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

The reservations ensure that funds will be available when project costs are incurred, and provide a complete picture of funds available for future use. At any time, managers can view:

• the defined spending limits, the costs of their recorded expenditures

• the anticipated costs of their planned expenditures and approved projects

• the remaining funds for future projects and future purchases

When you submit a top-down integrated budget to create a baseline version, Oracle Projects validates the submitted budget version, creates a baseline version, validates existing approved transaction amounts (at resource, resource group, task, top task and project levels) against the project budget, generates accounting events, creates encumbrance journal entries in final mode for the accounting events in Oracle Subledger Accounting, validates budget amounts against the General Ledger Funding Budget, and validates existing approved transaction amounts (at account level) against the project budget. You run the process PRC: Transfer Journal Entries to GL to transfer encumbrance journal entries from Oracle Subledger Accounting to Oracle General Ledger. When you submit the process PRC: Transfer Journal Entries to GL, you can optionally choose to have the process post the journal entries. Otherwise, you can manually post the journal entries in Oracle General Ledger.

Budget Integration Procedures

You use different operating procedures depending on whether you are using bottom-up budget integration or top-down budget integration. For a detailed discussion of these procedures, see:

• Using Bottom-Up Budget Integration

• Using Top-Down Budget Integration

The following section describes the procedures for generating accounts for project budget lines.

Account Generation

Oracle Projects budget integration supports integration with non-project budgets defined in Oracle General Ledger. You define Oracle General Ledger budgets at the account level, and you enter budget amounts for an account and a GL period combination. Therefore, when a project budget is integrated with a GL budget, an account must be assigned to each project budget line.

Project Budget Account Generation Workflow

The Project Budget Generation Account workflow enables you to automate the account generation and assignment process. You can optionally set up detailed accounting rules in Oracle Subledger Accounting. If you define your own detailed accounting rules in Oracle Subledger Accounting, then Oracle Subledger Accounting overwrites default accounts, or individual segments of accounts, that Oracle Projects generates using the Project Budget Account Workflow. In this case, Oracle Projects updates the budget lines with the new accounts.

For details about this workflow, see: Project Budget Account Generation Workflow, Oracle Projects Implementation Guide.

For details about Oracle Subledger Accounting, see: Integrating with Oracle Subledger Accounting.