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About Funds Checking

When you enable budgetary control in a set of books, the Oracle feeder systems (Payables and Purchasing) can check funds and reserve them for transactions. You can also funds check manual journal entry batches in General Ledger.

Passing and Failing Funds Checking

Suppose you enter a requisition and want to check funds on a distribution line. The system checks funds on the transaction, updates the status of the lines to Passed Funds Check or Failed Funds Check, and immediately displays the result.

Reserving Funds

After a requisition passes funds checking, you will want to reserve funds. Before you reserve funds, the distribution lines on the requisition have a status of Pending. After you submit the lines for funds reservation, the status changes either to Accepted or Rejected.

For transactions from Payables and Purchasing, the system might partially reserves funds. For example, if you have three distribution lines on a requisition and only two have sufficient funds, the system reserves funds for the two lines and marks them as Accepted. Since no funds are available for the third line, the system marks it as Rejected.

Approving Manual Journal Batches

General Ledger approves a journal entry batch only if it can approve all lines in the batch. For example, you enter a journal entry batch with three journal entries, each containing four lines. If General Ledger cannot approve all lines in a journal entry, it does not approve any lines in the batch.

Immediate Update of Funds Available

The system updates available funds immediately when you reserve funds, whether you reserve funds for an invoice, purchase order, requisition, or other document. Information the system needs to calculate funds available is therefore always current regardless of when you post.

Example

You are approaching year end and you want to spend available funds before you lose the funding. The online inquiry of funds available tells you that you have $6000 available in Company 01-Product Expense. You enter a purchase order for $5000 which you charge to Company 01 - Product Expenses. You approve the purchase order online. Purchasing notifies you that the purchase order is approved. Another buyer then enters a purchase order for $2000 to Company-01 Product Expenses and attempts to approve it. The approval process fails because sufficient funds are not available.

You need not post an encumbrance batch immediately to see what effect the approved transactions had on available funds. However, you must post an encumbrance batch in General Ledger to accurately reflect funds available in reports and trial balances. (The Funds Available Analysis Report and the View Funds Available window do include the effect of approved but unposted transactions in calculating funds available.)

Suggestion: We recommend you implement AutoPost to post encumbrance entries automatically.

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