PeopleSoft Enterprise Billing 9.1 PeopleBook

Using Commitment Control Accounting in PeopleSoft Billing

This chapter provides an overview of commitment control accounting in PeopleSoft Billing, lists common elements and discusses how to:

Run the Budget Checking process (FS_BP).
View PeopleSoft Billing invoice budget checking exceptions.
Correct accounting entries that fail budget checking.

Understanding Commitment Control Accounting in PeopleSoft Billing

Use commitment control accounting to budget check revenue transactions against revenue budgets and update those budgets accordingly. For the revenue budget, commitment control accounting enables you to track the budgeted, recognized and collected revenue amounts. When a revenue budget has an associated expenditure budget, revenues can increase the available spending authority of a particular expenditure budget.

The revenue side of commitment control accounting focuses on budget tracking as opposed to controlling the flow of transactions and preventing operational losses. The system updates revenue budgets resulting from budget checking. These updates are to internal accounting data only and do not affect the customer invoice.

Revenue entries from billing transactions increase or, for adjustments, decrease the recognized amount of the revenue budget. Only revenue, discount and surcharge, InterUnit expense, and statistical distribution accounts are budget checked for control.

To budget check an invoice in PeopleSoft Billing:

Set up the budget checking options.
Enter the bill online or through the Billing Interface.
Run the Pre-Process & Finalize process (BIIVC000).
Run the Billing Currency Conversion process (BICURCNV).
Run the Billing Pre-Load process (BIPRELD).

Correct errors that are generated during the Pre-Load process. Use the Staged Acctg Entries component to correct ChartField errors that are generated.
Run the Load GL Interface process (BILDGL01).
Run the Comm. Cntrl. Budget Checking process.
Correct errors on any accounting entries that fail budget checking.

Correcting the errors changes the budget checking header status from E (error in budget checking) to N (not budget checked). The transactions are then ready to resume processing. When transactions pass budget checking, they can be processed by the Journal Generator.

Budget Checking in PeopleSoft Billing

The Budget Checking process processes only those accounting entries that are created by the Load GL Interface process with a budget checking header status of N (not budget checked). It determines the fiscal year and period from the budget date of the accounting line entry and checks the accounting entry against the recognized revenue budget for that fiscal year and period.

Note. Deposit (DEP), Deposit Applied (DAPP), Deposit Refund (DREF), and Payment with Corporate Voucher (PYCV) lines are not truly revenue accounts, although they are assigned the a revenue account type. To avoid budget checking these lines, the system sets the budget checking header status to V.

Deposit Refund Fees (DRFF) lines are true revenue lines; the system treats them normally.

The Budget Checking process determines if the budget allotted is sufficient. If you select Control in the Commitment Control Option field on the Source Transaction Definition - Options page, the system assigns a status of E (error) to transactions that do not pass budget checking. If you elect to track transactions with a budget, the system assigns a status of W (warning) to transactions that do not match the budget allotment.

If the accounting entry successfully passes budget checking, the Budget Checking process increases the recognized revenue ledger by the transaction amount, updates the offset ledger balance to maintain balanced commitment control ledgers, and updates the PeopleSoft General Ledger distribution status to N (none). Transactions that pass budget checking, those with a PeopleSoft General Ledger distribution status of N, will be processed the next time that you run the Journal Generator Process (FSPGGJGEN).

The Load GL Interface Process and Budget Checking

Budget dates determine against which budget period the transaction data is checked. If a budget date exists from bill entry at the bill line distribution level, the Load GL process (BILDGL01) carries that date forward. If you do not provide a budget date at the bill line distribution level in bill entry, the Load GL process populates the budget date with the accounting date that is on the bill header. The Finalization process (BIIVC000) determines invoice dates and accounting dates. It populates the invoice date with the current date if it is not provided in bill entry, and it populates the accounting date with the invoice date if the accounting date is not provided at bill entry. Because you run the Load GL process after the Finalization process, the accounting date is populated by the Finalization process on the bill header, even if you do not provide one at bill entry.

The system creates accounting entry types that are not involved in budget checking with a blank budget date. The system creates future accounting period entries for realized revenue and realized discounts or surcharges with a budget date value that is derived from the future period accounting date option that you define on the Installation Options - Billing - GL/AR Options page, which is either the first or last day of the accounting period.

The system checks multiple process status flags throughout bill processing to ensure that a bill is ready to be picked up by downstream processes.

The Load GL process sets the budget checking header status to N if you selected the Commitment Control option for PeopleSoft Billing on the Enable Commitment Control page. This is done for revenue, distribution and surcharge, InterUnit expense, and statistical distribution accounts only. Otherwise, the Load GL process sets the budget checking header status to V. The system sets the budget checking line status to the same value as that of the header status.

The Load GL interface creates accounting entries with an initial PeopleSoft General Ledger distribution status of H (hold) for those transactions with a budget checking header status of N.

The Journal Generator process does not pick up accounting entries with a PeopleSoft General Ledger distribution status of H until they pass the Budget Checking process and their PeopleSoft General Ledger distribution status is changed to N (none).

If commitment control is enabled at the installation level on the Enable Commitment Control page:

Load GL Sets Budget Checking Header Status to	Budget Checking Line Status	Accounting Entry GL Distribution Status	Can Be Processed by Budget Checking Process?	Can Be Processed by Journal Generator Process?
N (not budget checked).	N (not budget checked).	H (hold)	Yes	No

Status values after successful Budget Checking process:

Budget Checking Process Sets Budget Checking Header Status to	Budget Checking Line Status	Accounting Entry GL Distribution Status	Can Be Processed by Budget Checking Process?	Can Be Processed by Journal Generator Process?
V (valid budget check).	V (valid budget check).	N (none)	No	Yes

Status values after unsuccessful Budget Checking process:

Budget Checking Process Sets Budget Checking Header Status to	Budget Checking Line Status	Accounting Entry GL Distribution Status	Can Be Processed by Budget Checking Process?	Selected by Journal Generator Process?
E (error in budget check).	E (error in budget check).	H (hold)	Yes	No

The Load GL - Unbilled Revenue Accrual process (BIACCRUE) creates accounting entries with a budget header status of V, enabling the Budget Checking process to bypass unbilled revenue accounting entries. Unbilled revenue accounting entries do not need to go through the Budget Checking process because these entries are automatically reversed during the next accounting period, and each bill is eventually invoiced and booked to the recognized revenue accounts.

Defining Additional Billing Installation Options

Enabling Commitment Control for Specific Applications

Common Elements Used in This Chapter

Go to Source Adjustment	Click Go to Source Adjustment to access the Correct Budget Check Errors component, where you can make corrections to the budget date or to the ChartFields.
Exception Type	The Exception Type field limits the rows that appear to transactions with one of the following exception types: Error: The invoice fails budget checking. Warning: The Budget Checking process issues a warning, but also updates the control budget ledger.
Maximum Rows	Specify the maximum number of rows that are to appear in the scroll area. If the More Budgets Exist field is populated, the invoice has more exceptions than the number that you enter in the Maximum Rows field. Enter a different search criteria to shorten the list or increase the maximum number of rows.
Override Transaction	Select to enable the entire transaction to update the control budget even if error exceptions exist. This option is available only for users with super user security access and is not available if the transaction passed budget checking with only warning exceptions. Select it prior to budget checking.
Advanced Budget Criteria	Click Advanced Budget Criteria to open the Budget Exceptions - Refine Inquiry Criteria page, where you can restrict rows to specific business units, ledger groups, and accounts. Leave these fields blank to return all values.
Search	After you enter selection criteria, click to refresh the scroll area.
	Click the Budget Check button to run the Budget Checking process again after you override the transaction or a budget. Run the process again if you change the invoice.
	Click the Budget Check Details button to open the Commitment Control page, where you can see the source transaction type and the amount type for the invoice.
	Click the Tran Override Available Info (transaction override available information) button to determine the reason why you cannot override the entire transaction.
	Click the Budget Override Available Info (budget override available information) button to determine the reason why you cannot override a single budget entry.
Budget with Exceptions	This scroll area displays all the commitment control budgets that have exceptions for the invoice. Include selection criteria to limit the number of budget rows that appear in the scroll area.
	Click the View Exception Details button to open the Exception Details page for Transaction Headers, where you can view the budgets with error or warning exceptions, the budget ChartFields, and any overrides if they exist. You cannot override the budget on this Exceptions Details page. Use the Billing Invoice Exceptions page to override the budgets.
	Click the View in Transaction Currency button to view a bill line in the transaction currency.
Percentage	The sum of accounting entry percentages for a particular line transaction. The percentage must equal 100.
Date Time Added	The date and time that a bill line is added to the invoice.
Last Update Timestamp	The date and time that a bill line was last updated.
Last Maintained By Operator ID	The user ID of the person who last updated a bill line.
Bill Line Inquiry link	Click to access the Review Billing Information - Details - Acctg - Rev Distribution page, where you can review the bill line accounting information.
Budget Check link	Click to access the Budget Check Acct Entries page, where you can run the Budget Checking Process, or inquire further into the budget checking exceptions for the invoice.
Level	The discount or surcharge level number that is applied to a bill line.
D/S (discount/surcharge)	Displays a D if a bill line is associated with a discount, and displays an S if a bill is associated with a surcharge.
Budget Date	Enter a value to enable the system to determine the budget period when it processes transactions against a control budget.
Display Lines with Errors Only	Select to display only invoice lines with budget-checking errors.
Apply Correction	Click to apply the accounting entry or budget date corrections. When you click this button, the system: Updates the budget header status to N (not budget checked) if the Pre-Load process is not required. Deletes the records in BI_ACCT_ENTRY when the Pre-Load process is required and ChartField values were changed during accounting entry correction. Updates the Pre-Load indicator on the BI_HDR record to 1 when the Pre-Load process is required. Refreshes the Accounting Entries Summary page.
Open Item Key	When an Open Item account applies to or is chosen for an accounting entry, the Open Item Key must be set.
Journal Line Reference	When an Open Item account applies to or is chosen for an accounting entry, the Journal Line Reference will also be displayed. This value may be blank.

See Also

Managing Budget Exceptions

Running the Budget Checking Process

You can initiate the Budget Checking process from the Budget Check Acct Entries page (budget check accounting entries page).

Page Used To Run the Budget Checking Process

Page Name	Definition Name	Navigation	Usage
Budget Check Ivc	RUN_BI_KK_BCHK	Billing, Generate Invoices, Non-Consolidated, Request Budget Check	Initiate the Budget Checking process.
Budget Check for Consol Bills	RUN_BI_KK_BCH_CON	Billing, Generate Invoices, Consolidated, Request Budget Check, Budget Check for Consol Bills	Initiate the Budget Checking process for consolidated bills.

Initiating the Budget Checking Process

Access the Budget Check Acct Entries (Billing, Generate Invoices, Non-Consolidated, Request Budget Check, Budget Check Acct Entries) or the Budget Check for Consol Bills page (Billing, Generate Invoices, Consolidated, Request Budget Check, Budget Check for Consol Bills).

Specify the run control parameters and click Run to access the Process Scheduler page, where you can initiate the Budget Checking process.

Note. The Business Unit field is required when requesting a budget check for consolidated invoices.

Viewing Billing Invoice Budget Checking Exceptions

When accounting entries fail budget checking, the Budget Checking process populates the budget check header and line status with E (error in budget check). If any one line on a transaction fails budget checking, the system marks the entire invoice in error by updating the budget check header status field. No budget updates occur for the transaction.

If accounting entries fail budget checking, you can:

View budget checking errors or warning messages for invoices.
View individual invoice lines with budget checking errors or warning messages.
View line details for source transactions with budget exceptions.

Pages Used to View Billing Invoice Exceptions

Page Name	Definition Name	Navigation	Usage
Billing Invoice Exceptions	KK_XCP_HDR_BI1	Commitment Control, Review Budget Check Exceptions, Revenues, Billing Invoice, Billing Invoice Exceptions	View budget checking errors or warning messages for invoices. Users who have authority can override the budget exceptions on this page.
Billing Invoice - Line Exceptions	KK_XCP_LN_BI1	Commitment Control, Review Budget Check Exceptions, Revenue, Billing Invoice, Line Exceptions	View individual invoice lines with budget checking errors or warning messages.
Billing Invoice Line Drill Down	KK_DRL_BI1_SEC	Click the Drill Down to Transaction Line button on the Exception Details page for Transaction Headers for a specific transaction line.	View line details for source transactions with budget exceptions.

Viewing Budget Checking Errors

Access the Billing Invoice Exceptions page (Commitment Control, Review Budget Check Exceptions, Revenues, Billing Invoice, Billing Invoice Exceptions).

Budget Override Tab

Override Budget

Select to update the control budget even though the transaction exceeds the budget. This field is available only for users with super user security access and if the budget transaction fails budget checking. It is not available if the source transaction type does not allow overrides and the budget header status is not checked. If the budget header status is not checked, you changed the source transaction after the Budget Checking process issued the error exceptions and you did not run the Budget Checking process again.

Override User ID

When you override the budget, the system populates the this field with the user ID for the person who overrode budget checking and the Override Date field with the date and time that they overrode the budget.

Click the View Related Links button to open a page with the following options:

Go to Budget Exception: Opens the Budget Exceptions page, where you can view other transactions that have exceptions for the budget and override them. You must have authority to inquire on the budget to open the page.

Go to Budget Inquiry: Opens the Budget Details page, where you can view the budget details, such as the available amount that is remaining, the attributes, and the amounts that are used by each ledger (encumbrance, pre-encumbrance, and so on) in the budget. You must have authority to inquire on the budget to open the page.

Budget ChartFields Tab

The Budget ChartFields tab displays the ChartFields values for the budget.

Viewing Budget Details and Transaction Activity

Viewing Individual Invoice Line Budget Checking Errors

Access the Line Exceptions page (Commitment Control, Review Budget Check Exceptions, Revenue, Billing Invoice, Line Exceptions).

Note. Multiple views of this page are available by clicking the tabs in the scroll area. Fields that are common to all views appear first.

Line From and Line Thru	Enter invoice line numbers to view a range of lines. Only invoice lines with exceptions are available options.
Transaction Lines with Budget Exceptions	This scroll area displays the invoice lines with error or warning exceptions. You can limit the number of budget line exceptions by entering selection criteria.

Line ChartFields Tab

The Line ChartFields tab displays the ChartFields values for the budget.

Line Amount Tab

Foreign Amount	The amount of the line in the entry currency.
Monetary Amount	The amount in the base currency of the primary ledger.

Viewing Budget Exception Line Details

Access the Billing Invoice Line Drill Down page (click the Drill Down to Transaction Line button on the Exception Details page).

Transaction Line Identifiers

Transaction Line Identifiers	This group box provides information to identify the source transaction.
D/S Level (discount/surcharge level)	The discount or surcharge level number is applied to this line.
Tax Authority	Any tax authority agency that is empowered to set taxes against this bill.
Identifier	The discount/surcharge identifier
Revenue Sequence Number	The sequence number of the distribution line.
Type	The account entry type.

Transaction Line Details

Transaction Line Details

This group box displays the details for the line. It displays the ChartField name, value, and description for any of the ChartFields depending on the budget.

Note. The ChartFields may or may not match the budget ChartFields, as the Budget Checking process translates the transaction ChartFields into the corresponding budget ChartFields by using the control budget definition.

Line Status

The budget checking line status. Values are:

E (error): The entry failed to pass budget checking.

N (not checked): The Budget Checking process has not processed the entry or the invoice has been changed and not budget checked again. Exception data may be inaccurate. Budget check the transaction again to update the exceptions

V (valid): The entry passed budget checking and the process updated the control budget ledger.

W (warning): The Budget Checking process issued a warning, but also updated the control budget ledger.

Budget Date

The budget date for the distribution line in the invoice.

Line Amount

If the transaction amount and the base amount are different, both amounts appear.

Correcting Accounting Entries That Fail Budget Checking

Correct the errors that cause accounting entries to fail budget checking by:

Accessing the bill through the Billing Invoice Exceptions page to override the transaction, and then make the necessary adjustments through PeopleSoft Billing Adjustments (if the changes needed to pass budget checking are to the amount or distribution percentage). You can make a net adjustment, credit and rebill, or credit the entire bill.

See Adjusting Bills.
Accessing the PeopleSoft Billing Correct Budget Check Errors component to make corrections to accounting entries with a budget header status that is in error (if the changes that are needed to pass budget checking are to the budget date or ChartFields). In this component, you can correct ChartField values and budget date information on an invoice after it is finalized. You can also access this component through the Billing Invoice Exceptions pages by clicking the button in the Transfer column on the grid or clicking the View Related Links.

Note. Correct Budget Check Errors component enforces ChartField Security. The component registry entries are delivered with only a subset of detail records enabled for ChartField Security. You can enable or disable the detail records from ChartField Security depending on the business requirements. Keep in mind that each detail record that is enabled adds overhead to open the component.

Note. Some source transaction types do not allow overrides.

See Managing Budget Exceptions.

Pages Used to Correct Accounting Entries that Fail Budget Checking

Page Name	Definition Name	Navigation	Usage
Billing Invoice Exceptions - Header Exceptions	KK_XCP_HDR_BI1	Commitment Control, Review Budget Check Exceptions, Revenues, Billing Invoice, Billing Invoice Exceptions	Select the Override Transaction field to override the error that causes the invoice to fail budget checking.
BI Invoice Exceptions - Line Exceptions	KK_XCP_LN_BI1	Commitment Control, Review Budget Check Exceptions, Revenues, Billing Invoice, Line Exceptions	Select the Override Transaction field to override the error that causes the invoice to fail budget checking.
Commitment Control Correction - Acctg Entries Summary	BI_KK_COR_AE	Billing, Maintain Bills, Correct Budget Check Errors, Acctg Entries Summary	Review accounting entry information for the invoice, such as the ChartField, transaction amount, and relevant discount and surcharge information. Apply corrections to accounting entry and budget date errors.
Commitment Control Correction - Line	BI_KK_COR_LN	Billing, Maintain Bills, Correct Budget Check Errors, Line	Correct line information for bill lines that fail budget checking.
Commitment Control Correction - Revenue	BI_KK_COR_REV	Billing, Maintain Bills, Correct Staged Acctg Errors, Revenue Billing, Maintain Bills, Correct Budget Check Errors, Revenue	Correct budget date or ChartField information for bills with accounting entry types of revenue.
Commitment Control Correction	BI_KK_COR_DS	Billing, Maintain Bills, Correct Staged Acctg Errors, Disc/Surc Billing, Maintain Bills, Correct Budget Check Errors, Disc/Surc	Correct discount and surcharge distribution budget date or account information.
Commitment Control Correction IU Expense (InterUnit expense)	BI_KK_COR_IUE	Billing, Maintain Bills, Correct Staged Acctg Errors, IU Expense Billing, Maintain Bills, Correct Budget Check Errors, IU Expense	Correct budget date or ChartField values for InterUnit expense accounting entries.
Commitment Control Correction Statistic	BI_KK_COR_STA	Billing, Maintain Bills, Correct Staged Acctg Errors, Statistics Billing, Maintain Bills, Correct Budget Check Errors, Statistics	Correct budget date or ChartField values for statistical information.
Commitment Control - Budget Check	KK_EXCPTN_OVER_SEC	Billing, Maintain Bills, Correct Budget Check Errors	Rerun the Budget Checking process after correcting accounting entries that are in error.

Correcting Amounts and Distribution Percentages in Error

To correct an amount or distribution percentage of an account entry that fails budget checking:

Select the Override Transaction option on the Billing Invoice Exceptions page
Adjust the invoice on Adjust Entire Bill component, or Adjust Selected Bill Lines component.

You can make a net adjustment, credit and rebill, or credit the entire bill.
Run the PeopleSoft Billing Finalize and Print (BIIVC000), Currency Conversion (BICURCNV), Pre-Load (BIPRELD), and Load GL (BILDGL01) processes before rerunning the Budget Checking process.

The adjusted accounting entries, when combined with the original accounting entries, must net out to an amount that is within the budget tolerance to pass budget checking.

Note. When copying or adjusting a bill, the system does not copy the budget date field from the source bill. The budget date value resets to its default, a null value. The invoice and accounting dates also reset to null.

See Also

Adjusting Bills

Changing Budget Dates and ChartFields in Error

To correct a budget date or ChartField of an account entry that fails budget checking:

Access the PeopleSoft Billing Correct Budget Check Errors component.

Make corrections to accounting entries with a budget header status of E (error). When you save the changes, the accounting entries are then available to go through the Budget Checking process again.

You cannot update the budget date of future period accounting entries (on invoices with deferred revenue accounting entries) because it is generated by the Load GL process. However, you can make changes to ChartField information for revenue distribution and the changes cascade down to future period accounting entries for the corresponding distribution line.
Click the Apply Correction button to update the accounting entries with the changes, and to change the status of the budget header status from E to N.

The entries are ready to go through the Budget Checking process again.

Note. Only invoices with a budget check header status of E are accessible through the Correct Budget Check Errors component.
Click the Budget Check link on the Acctg Entries Summary page to rerun the Budget Checking process.

If the Pre-Load process is required for the corresponding invoice and if you changed any ChartField values during accounting entry correction, the system displays an error message stating that you must run the Pre-Load process before rerunning the Budget Checking process. The system displays a warning message if the Pre-Load process is required for the corresponding invoice but you made no changes to the ChartField values during account entry correction, indicating that you might need run the Pre-Load and the Load GL processes before running the Budget Checking process.

If the Pre-Load process is not required for the corresponding invoice and you made no changes to the ChartField values during accounting entry correction, the system displays the Commitment Control Budget Check page, where you can initiate the Budget Checking process to run online for the specific invoice.

Note. If the corrections that you make to an accounting entry are to the budget date only, or if the ChartField action flag on the BI_HDR record is not set to Y, you are not required to rerun the Pre-Load process after account entry correction. You are required to run the Budget Checking process only.

See Also

Creating and Maintaining Projects

Setting Up PeopleSoft Project Costing Control Data