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.
Before you use Commitment Control with General Ledger:
Read PeopleSoft Commitment Control: Understanding PeopleSoft Commitment Control topic.
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 Ledgers For A Unit - Definition Page.
Review the Commitment Control source transaction definition, GL_JOURNAL, which is delivered for PeopleSoft General Ledger.
Do not change this definition.
The create journal entries component allows you to create journals that impact commitment control ledgers. If you select the actual ledger group on the journal header tab then, depending on the details below, the entries could impact the actuals ledger and all attached commitment control ledger groups depending upon the commitment control rules and the selected amount type. Alternatively, if you select a commitment control ledger group, the entry only impacts that specific ledger group.
The commitment control journal entry that you create 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 commitment control amounts are updated in the commitment control ledgers by the budget processor.
If you selected pre-encumbrance, encumbrance, or collected revenue, the budget processor only updates the amounts in the corresponding Commitment Control ledgers, and the actuals ledger is not updated. If you want to adjust the specific commitment control amounts and create the appropriate budgetary accounting entry, use entry event on the commitment control 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 PeopleSoft Commitment Control Business Processes.
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.
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).