When you define top-down budget integration for a project, it is recommended that you create a commitment budget for tracking and controlling the project's expense commitment transactions. When you enter the budget amounts for the commitment budget, keep in mind the following considerations:
Budgetary control is 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 process to create a baseline version varies depending on whether you use workflow to control budget status changes.
Additional validations occur when you create a baseline for an integrated project budget.
When you define top-down budget integration, the system automatically enables budgetary control for the integrated budget type. When you enter amounts for budgets or financial plans with budgetary control enabled, additional consideration is required if you use a resource list for budget entry, or if you have enabled burdening for your project. For example, you cannot perform funds check at resource or resource group level for financial plans. Similarly, if burdening is enabled for the project, sufficient funds must be available to cover the burden amounts.
For more details, see: Entering Budget Amounts for Controlled Budgets.
Budgetary control can be defined at the Project Template level. To defined budgetary control at the project template level, navigate to the Setup subtab of the Financial - Budgeting and Forecasting page. Budgetary control defined at the project type level can be overwritten at the project template level (or project level) providing the "Allow Override At Project Level" option has been set.
The Budgetary Controls option under the Setup tab in the Financial - Budgeting and Forecasting page enables you to search for a project template and set up the budgetary control for it. You can override the budgetary control defined at the project type at the project template level (or project level) provided the Allow Override at Project Level option has been set.
You can set up budgetary control at the project template level during project template setup. The budgetary control can be defaulted from the project type or overwritten at the template level provided the Allow Override at Project Level options has been enabled.
When you define top-down budget integration for a project, you integrate a project budget type with a funding budget defined in Oracle General Ledger. You maintain funding budgets by account and GL period. In Oracle Projects, you create the project budget using an entry method that is time phased by GL Period. For more information on account generation, see: Budget Integration Procedures.
When you enter and approve expense commitment transactions related to the integrated project, the processing liquidates project encumbrances and creates commitment encumbrances. To obtain accounts for the liquidation entries, Oracle Projects maps each commitment transaction line to a project budget line using the project resource mapping rules and the transaction GL date. If a budget line is not defined for a transaction line resource category and GL period, then an account for the liquidation entry cannot be obtained. When an account liquidation entry cannot be obtained, the transaction cannot be approved.
Therefore, when you enter 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 used in another, then ensure that your project has a defined start and end date. When your project has a defined start and end date, 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 Generation workflow process to generate an account for each new budget line.
Note: Do not update the account for the budget line if the budget line is associated with transactions. Updating the account causes the baseline process to fail.
For example, you create a project under the following conditions:
The fiscal year runs January-December
The budgetary control time boundary code for a project is Year
You do not specify a project end date
You enter budget amounts for the January-May GL periods
In this case, the baseline process creates zero amount budget lines for the June through December GL periods.
For additional information, see: Project Budget Account Workflow, Oracle Projects Implementation Guide.
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. Oracle Projects updates the budget lines with the new accounts.
When a project is set up to use top-down integration, the process to create a baseline version varies depending on whether you use workflow to control budget status changes.
If you do not use workflow to control budget status changes, then Oracle Projects calls the PA: Budget Integration Workflow. For information about the workflow, see: PA: Budget Integration Workflow, Oracle Projects Implementation Guide.
If you use workflow to control budget status changes, then Oracle Projects changes the budget version status to In Progress and calls the budget approval workflow. For information about this workflow, see: PA: Budget Workflow, Oracle Projects Implementation Guide. After the budget is approved, baseline processing continues for the budget version. Oracle Projects displays any rejections encountered during baseline processing in the budget approval notification. For information about the activities that take place during baseline processing, see: Creating a Baseline for an Integrated Budget.
When you create a budget baseline for a top-down integrated project budget, 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.
If the baseline budget version is the initial baseline budget version for the budget, then Oracle Projects creates and validates encumbrance journal entries for this budget version. If a prior baseline budget version exists, then Oracle Projects creates and validates encumbrance journal entries for both the most recent baseline budget version (credits) and for the new budget version (debits).
After you create a baseline version for a top-down integrated project budget, you run the process PRC: Transfer Journal Entries to GL to transfer the encumbrance journal entries to Oracle General Ledger and initiate the process Journal Import in 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.
Note: The baseline process updates funds balances in Oracle General Ledger. The process PRC: Transfer Journal Entries to GL does not affect funds balances.
For details about creating a baseline for a top-down integrated project budget, see: Creating a Baseline for an Integrated Budget.
For information about troubleshooting baseline failures, see: Troubleshooting Baseline Failures for Integrated Budgets.