Using Commitment Control in General Ledger

This chapter provides an overview of the relationship between Oracle's PeopleSoft Commitment Control and General Ledger and discusses how to:

• Enter and process commitment control journal entries in PeopleSoft General Ledger.

• Run check only without posting to LEDGER_KK.

• Enter and process Commitment Control journal entries with entry events in PeopleSoft General Ledger.

• Review and correct journal entries with budget checking errors.

Understanding Commitment Control and General Ledger Journals

Commitment Control ensures that commitments and expenditures do not exceed total budgets. Set up Commitment Control budgets and budget ledgers and link them to the actuals ledgers. This enables you to create journal entries in PeopleSoft General Ledger. This section provides an overview of:

• Commitment Control journal entries.

• Commitment Control journal entries with entry events.

• Journal entries with budget checking errors.

Prerequisites

Before you use Commitment Control with General Ledger:

• Read the PeopleSoft Enterprise Commitment Control 9.1 PeopleBook: "Understanding Commitment Control" chapter.

• Set up your system for Commitment Control processing.

• Enable Commitment Control for General Ledger on the Installation Options - Products Page.

• Set up ledger groups specifically for control budgets and link the budget ledgers to the ledgers recording actual transactions (actuals ledgers) using the Ledger For A Unit page.

• Review the Commitment Control source transaction definition, GL_JOURNAL, which is delivered for PeopleSoft General Ledger.

  Do not change this definition.

See Also

Setting Up Basic Commitment Control Options

Commitment Control Journal Entries

The commitment control journal entry that you enter depends on the Commitment Control amount type that you select. When you select:

• Planned.

  Updates the Commitment Control planned ledger.

• Actuals and Recognized.

  Updates the GL actuals ledger, the Commitment Control expense ledger and the Commitment Control recognized ledger(s). The budget processor decides which Commitment Control ledgers to update based upon the budget definition rules. For each Commitment Control ledger group that is associated with an actuals ledger group, the budget processor determines by account type where the specific transaction will impact. If impacting the Expenditure ledger group, then the Expense ledger is selected. If impacting the Revenue ledger group, then the Recognized ledger is selected. The journal transaction is recorded in the actuals ledger and the revenue or expenditure commitment control ledger is updated.

• Pre-Encumbrance.

  Updates the Commitment Control pre-encumbrance ledger only (expenditure ledger groups only).

• Encumbrance.

  Updates the Commitment Control encumbrance ledger only (expenditure ledger groups only).

• Collected Revenue.

  Updates the Commitment Control collected ledger only (revenue ledger groups only).

• Actuals, Recognize, Collected Revenue

  Updates the GL actuals, the Commitment Control Collected and Commitment Control recognized ledgers, as well as the Commitment Control expense ledgers.

Commitment Control journal entries can be for interunit journals, reversals, allocations, revaluation, and translation journals that are set up for or linked to a Commitment Control ledger group. You process the journal online or through batch processing. Once the journal entries are edited, the Commitment Control budget processor (FS_BP) checks the GL journals against control budgets to ensure that they comply with the rules established for budgets. Budget processor may fail a transaction if it does not comply with the budget rules. Rules control whether or not spending can exceed a budget. It also verifies that you have valid ChartFields based on the budget ledger or ledgers and updates these budget ledgers with the journal amounts. An error is generated for the transaction if there is a problem, which you can correct before you continue with your processing. If everything is correct, budget processor updates the budget amounts in the commitment control budget ledgers.

If you selected an actuals commitment control type prior to creating the journal entry, the detail accounting transactions are posted to the actuals ledger, while the budget amounts are updated in the commitment control budget ledgers by the budget processor.

If you selected pre-encumbrance, encumbrance, or collected revenue, the budget processor only updates the budget amounts in the corresponding Commitment Control ledger, and the actuals ledger is not updated. If you want to adjust the specific budget amount and create the appropriate budgetary accounting entry, use entry event on the budget adjustment journal entry. When the Amount Types, pre-encumbrance, encumbrance, collected revenue, and planned are selected, journal edit does not perform the balancing process on the journal, which means that it does not recycle or suspend the journal, even if the journal is not balanced.

See Setting Up Basic Commitment Control Options.

See Understanding PeopleSoft Commitment Control.

Commitment Control Journal Entries with Entry Events

Use entry events with commitment control journal entries, which use the GLJE entry event process, and commitment control budget adjustment journal entries, which use the GLJEADJ entry event process.

See Understanding Entry Events in General Ledger.

Journal Entries with Budget Checking Errors

Budget checking errors can be corrected by:

• Changing values (ChartFields or amounts) on the Journal Entry - Lines page.

• Increasing or moving budget amounts.

• Updating trees that are used by the budget definition.

After making any of these corrections, you will need to rerun the budget processor to clear the errors and update the Commitment Control ledgers and supporting tables.

Budget Checking Journals Without Posting to LEDGER_KK (Check Only or Budget Pre-Check)

When you run a budget Check Only process (Budget Pre-Check), the budget processor performs the usual budget checking and edits when a budget journal or general ledger journal is budget checked, but it does so without committing changes (posting) to the LEDGER_KK and other like records. This option allows you to resolve errors before you post your final budgets to the ledgers. When errors are encountered during the Check Only process, they are reported at the budget journal and journal line level and written to the status logs to be accessed through existing commitment control inquiries, just as they are with the regular checking and posting of budgets.

A successful Check Only budget entry has a Budget Status of P (provisionally valid) to indicate a valid budget Check Only. After full processing, a successful budget check is indicated by the Budget Status V (valid), which indicates a successful budget check and posting to the LEDGER_KK record. A Check Only that results in logged errors updates the Budget Status to E (errors) and the application links an access to the exception table functions as with normal budget checking and posting. Lines with errors are updated to a status of E (error) and remaining valid lines have a status of N (not checked).

See Enabling Budget Pre-Check for Commitment Control.

See Also

Processing Source Transactions Against Control Budgets

Managing Budget Exceptions

Entering and Processing Commitment Control Journal Entries in General Ledger

This section discusses how to:

• Enter header information for Commitment Control journal entries.

• Use Commitment Control amount types.

• Enter and process Commitment Control journal lines.

Pages Used to Enter and Process Commitment Control Journal Entries in General Ledger

Entering Header Information for Commitment Control Journal Entries

Access the Journal Entry - Header page (General Ledger, Journals, Journal Entry, Create/Update Journal Entries, Header).

Note. An actuals ledger refers to a part of the RECORDING Ledger Group shown in the sample data and is used to distinguish the actual transactions ledgers from the commitment control budget ledgers. A detail ledger refers to ledgers that record actuals, preencumbrances, encumbrances, revenue, and collected revenue amounts at a detail account level rather than at a rolled up or summary account level.

Note. If you are only adjusting one specific commitment control ledger, select the commitment control ledger group and its ledger. This enables you to access the selected commitment control ledgers directly to create your adjustments. You do not have to click the Commitment Control link because the nature of the ledger group and ledger that you selected automatically identifies the type of adjustment. However, if you select commitment control ledger group, you cannot specify entry event on the journal line. This means that you have to manually create the corresponding budgetary accounting entry.

Using Commitment Control Amount Types

Access the Commitment Control page (Click the Commitment Control link on the Create Journal Entries - Header page).

The Budget Processor (FS_BP) determines how to update the control budget based on the commitment control amount type that you select.

• You can update the commitment control budget ledgers and also post the journal to the actuals ledger when you select the amount type Actuals and Recognized or Actuals, Recognize and Collect.

• You must select the commitment control amount type Encumbrance, Pre-Encumbrance, or Collected Revenue to make commitment control budget adjustments to these ledgers without updating the actuals ledger.

  You can use entry events to generate the corresponding budgetary accounting entry and post to the actuals ledger.

• You can also bypass commitment control budget checking or override commitment control budget exceptions by selecting the Commitment Control link and selecting the appropriate check box.

If the journal contains a journal line that has an account value that does not belong in the ledger represented by the selected Commitment Control amount type, the budget processor will not process the line nor update the commitment control ledger data table. For example, if one journal line contains a revenue transaction, and you selected pre-encumbrances as the Commitment Control accounting type, then budget processor will not process this line.

Entering and Processing Commitment Control Journal Lines

Access the Journal Entry - Lines page.

1. Enter the appropriate accounts, debit and credit amounts, and ChartFields for a commitment control journal.

   Note. Depending on how your data is set up, you may be required to enter entry event codes on the journal line.

   See Using Entry Events in General Ledger.

2. Save the journal lines.

3. Select Process: Edit.

   This process executes both the Edit and the Budget Check processes.

   Note. If you are creating a budget adjustment journal, you are required to select an entry event code that is associated with the GLJEADJ entry event process. The processing of this type is different from the processing of GLJE entry event process.

   See Using Entry Events in General Ledger.

4. Select Process: Budget Check Journal if you only need to execute the Budget Check process.

   Note. Budget Check only runs if the Journal Header Status is Valid (V). If the Journal Edit process has not yet been run successfully, the budget processor will do nothing.

   Note. When you increase the budget or change other budget options so that the journals that failed the budget check now pass, rerun the budget check processing again without changing the journals, or rerun the Journal Edit process . If you change a journal after you run the Journal Edit and Budget Check processes, you must rerun the Journal Edit and Budget Check processes again to reflect the correct information on the budget.

5. Select Process: Edit / Pre-Check to edit and run the journal through the Budget Processor. However, the Budget Processor will only check the journal and the funds will not be reserved. Commitment Control amounts will not be posted to LEDGER_KK. This process option is visible only when the Enable Budget Pre-check option is selected for General Ledger on the Installation Options - Commitment Control page (Set Up Financials/Supply Chain, Install, Installation Options, Commitment Control).

6. If you delete a journal after you run the budget processor, the system calls the budget processor and reverses the entry to the control budget during the Delete process and cleans up all Commitment Control records (exceptions and so on).

7. Once budget checking is successful, continue the posting process either online or in batch.

See Also

Creating Journal Entries

Requesting Journal Edits

Understanding PeopleSoft Commitment Control

Enter and Process Commitment Control Journal Entries with Entry Events in General Ledger

To understand how to use entry events with Commitment Control journal entries:

See Using Entry Events in General Ledger.

Reviewing and Correcting Journal Entries with Budget Checking Errors

This section discusses how to:

• Review and interpret Commitment Control journal status codes.

• Override journal entry budget checking errors.

• View journal header budget exceptions.

• View journal line budget exceptions.

Pages Used to Review and Correct Commitment Control Journal Errors

Reviewing and Interpreting Commitment Control Journal Status Codes

You can view the status for a specific journal on the Journal Entry - Lines page or the Journal Status - Journal Lines page. The status of the journal entry can be one of the following:

• E (error) The journal entry failed to pass budget checking. You must correct the error before you can continue processing.

• N (not checked) Budget Processor (FS_BP) has not processed the journal entry.

• P(provisionally valid budget check) The entry passed budget checking without committing changes to the LEDGER_KK, or other like records.

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

Note. If you receive a W (warning) error, the budget header status is still valid.

See Managing Budget Exceptions.

Overriding Journal Entry Budget Checking Errors

You can override commitment control budget journal errors in two locations:

• Journal Entry - Header page.

• GL Journal Budget Exceptions pages.

Overriding Commitment Control Budget Journal Errors from the GL Journal Budget Exceptions Page

To override budget journal errors, Access the Journal Entry - Lines page (General Ledger, Journals, Journal Entry, Create/Update Journal Entries, Lines).

Click the Budget Status field value to open the GL Journal Exceptions page to override the budget transaction in error and view details about the source transaction.

Note. You must have authority to override budget checking.

See Viewing and Handling Budgets with Exceptions.

See Also

Setting Up Basic Commitment Control Options

Setting Up Control Budget Definitions

Viewing Journal Header Budget Exceptions

Access the GL Journal Exceptions page (Click the Budget Status Code (E) on the Journal Entry - Lines page).

To define the GL Journal Exceptions Header information:

1. If you have super user security access (if security is not activated, anyone can select this check box), select the Override Transaction check box before or after running a budget check to update the control budget for an entire transaction, even if exception errors exist.

   This option is not available if the transaction passed budget checking with only warning exceptions.

2. Click the Advanced Budget Criteria link to open the Refine Inquiry Criteria page where you can restrict rows to specific business unit, ledger group, and account.

   Leaving these fields blank returns all values.

3. When you click Search to refresh the scroll area and select More Budgets Exist, the journal has more exceptions than the number you entered in the Maximum Rows field.

   To display these additional budgets, modify either the Maximum Rows field to increase the number of budgets with Errors or Warnings.

See Viewing and Handling Budgets with Exceptions.

Using the Budget Override Tab

To use the Budget Override tab:

1. Select Override Budget to update the control budget even though the transaction amount exceeds the budget amount.

   This field is available only if the budget transaction failed budget checking and you have authority to override a budget entry. It is not available if the source transaction type does not allow overrides and the Budget Header Status is N (Not Checked). When you override the budget exception, the system populates the Override User ID field with the user ID of the person who overrode budget checking and the Override Date field with the date and time of the budget exception override. The journal passes budget checking when you override all the budgets with exceptions, change the budget available amount, or change the journal amount.

2. Click View Related Links to access the Go to Budget Exception link and the Go to Budget Inquiry link.

3. Click the Go to Budget Exception link display the Budget Exception page.

   You can view and override additional transactions that have exceptions for the budget. You must be authorized to inquire on the budget and open this page.

4. If you click Go to Budget Inquiry, the Budget Details page opens.

   You can view the budget's details, such as the available amount remaining, the attributes, and the amounts used by each ledger (encumbrance, pre-encumbrance, and others) in the budget. You must be authorized to inquire on the budget to open this page.

5. Return to the Budget Override tab and click View Exception Details to drill down to the General Ledger Journal Line for this budget exception.

See Viewing and Handling Budgets with Exceptions.

Reviewing the Budget ChartFields Tab Information

To review the Budget ChartFields:

1. Select the Budget ChartFields tab on the GL Journal Exception page.

2. Review the ChartFields defined for the budget containing the exception.

   Budget ChartFields vary for different budgets.

3. Click View Exception Details to drill down to the General Ledger journal line details for this budget exception.

See Viewing and Handling Budgets with Exceptions.

Drilling Down to the Budget Exception's General Ledger Journal Line Details

To drill down to the General Ledger journal line:

1. On the GL Journal Exceptions page: Budget Override tab or the Budget ChartFields tab, click View Exception Details to open the Exception Details page, which contains the Transaction Header, and the Budget Exception Details and the Transaction Line information.

2. On the Budget Exception line, click the Drill Down to Transaction Line to review the General Ledger Journal Line Drill Down page.

3. Review the Transaction Line Identifiers group box information, which describes the source transaction data such as the business unit, ledger group, GL journal ID, journal date, and the journal line number.

4. Review the Transaction Line Details group box information, which describes the detail information for the budget that appear in the journal line such as ChartField name, value, and description.

See Viewing and Handling Budgets with Exceptions.

See Also

Setting Up Commitment Control Source Transaction Types

Setting Up Control Budget Definitions

Understanding Basic Commitment Control Setup

Viewing Journal Line Budget Exceptions

Access the Line Exceptions page (Commitment Control, Review Budget Check Exception, General Ledger, Journal and select the Line Exceptions tab to access the Line Exceptions page).

Limiting the Number of Budget Line Exceptions

To limit the number of budget line exceptions:

1. Use the Line Status field to limit the rows of budget line exceptions to either Error or Warning exceptions.

2. To view a range of lines, enter the source transaction line numbers in the Line From and Line Thru fields.

   The prompt list only displays journal lines with exceptions.

3. When you click Fetch Selection to refresh the scroll area, and the More Lines Exist check box is selected, this means the source transaction has more exceptions than the number you entered in the Maximum Rows field.

   Modify either the Maximum Rows field or the Line From and Line Thru criteria to increase the number of journal lines with error or warning exceptions to display in the Transaction Lines with Budget Exceptions scroll area.

4. In the Transaction Lines with Budget Exception group box, select the Line Values tab to list and inquire about the journal lines that have budget exceptions for a specific business unit, budget date, and ledger.

5. Select the Line ChartFields tab to list and inquire about journal line ChartField values that have budget exceptions.

   The number of ChartFields on a line varies based on the original budget setup.

6. Select the Line Amount tab to list and inquire about the journal line amounts that have budget exceptions.

   The Foreign Amount is the amount entered on the journal line in its entered currency. The Monetary Amount is the amount in the base currency of the ledger. The Quantity is the statistical amount, which may appear, if applicable.

7. Click View Exception Details on each of the tabs to open the Exception Details page.

   This page contains the Transaction GL Journal Line Number and Ledger , the Budget Exception Details and the Budget Items information for this journal line. Select the Budget ChartFields tab to view the ChartFields associated with the journal line's budget. Select the Budget Override tab to override the budget associated with this journal line.

See Viewing and Handling Budgets with Exceptions.