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Oracle Loans User Guide
Release 12.1
Part Number E13646-04
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Budgetary Control

This chapter describes setting up budgetary control.

This chapter covers the following topics:

Setting up Budgetary Control

Budgetary Control provides systematic enforcement of spending limits based on availability of funds before loan approval. Oracle Loans integrates with Oracle U.S. Federal Financials to generate accounting entries for the budgetary control of funds. Loan agents can check in real time, whether funds are available to cover the amount of a loan application.

If Approval Depends on Fund Availability is checked while creating the Loan Type, Loans automatically allocates funds for the entire loan amount at loan approval. It also reduces the budget accounts according to the U.S. Federal Accounting Subledger Accounting Methods.

If loan approval is not linked to fund availability, the funds are reserved on the first disbursement.

This is only available for organizations in the U.S. Federal government that offer direct loans and use Oracle U.S. Federal Financials. Other installations of Loans will not be able to view budgetary control features.

To set up budgetary control perform the following steps:

  1. Oracle General Ledger Setup, Oracle General Ledger Implementation Guide.

  2. Oracle U.S. Federal Financials Setup Overview, Oracle US Federal Financials Implementation Guide.

  3. Oracle Loans Setup for Budgetary Control.

    1. Create Loan Product with Budgetary Attributes

    2. Create Default Accounting

    3. Map Fund Value

Oracle Loans Setup for Budgetary Control

You can perform this setup only if you set up budgetary control in Oracle General Ledger. For further information, see: Overview of Budgeting, Oracle General Ledger User's Guide.

Creating Loan Product with Budgetary Control Attributes

  1. Login as Loan Administrator and click Accounting under Setup: Your organization: Loan Products.

  2. Create a Loan Product.

  3. Select Approval Depends on Funds Availability (optional).

  4. Ensure a valid Subsidy Rate exists in the Subsidy Rate tab.

Create Default Accounting for Loan Product

  1. Login as Loan Administrator and click Accounting under Setup : U.S. Federal Government.

  2. Ensure the Year and Fiscal Year Segments match the Budget Year.

  3. Fund Segment must match the Mapped Fund setup.

  4. Limitations, Program and Cost Center should match the corresponding fields in Budget Execution.

  5. The SGL or Natural Account used for Budget Execution must match the overlaid natural account segment set up in SLA account.

See: Accounting Derivation Rules

Fund Value Mapping

  1. Login as Loan Administrator and click Fund Value Mapping under Setup : <Operating Unit>.

  2. Query the Federal Account Symbol Name you created as part of Federal setup.

  3. Select a Financing Account.

  4. Select Matching Program Account Treasury Account Symbol.

    Note: The Federal Account Symbol needs to have at least one fund value mapped to it.

Setting Up Loan Types: Approval Depends on Funds Availability

While setting up loan types, the Approval Depends on Funds Availability option is only available to organizations in the U.S. Federal Government that offer direct loans. If set to Yes, the loan manager cannot approve the loan if funds are not available. If set to No, the manager can approve the loan but no funds are reserved. Disbursement cannot be made before funds are reserved.

Setting up Loan Products: Subsidy Rate

The Subsidy Rate tab will be visible only to organizations in the U.S. Federal Government that have Federal Financials enabled and is associated with a ledger with U.S. Federal Accounting Method. The Start Date of the Subsidy Rate can be the same or later than the Start Date of the Loan Product. The Start and End Date of the Subsidy Rate cannot overlap for different rates.