Setting Up Commitment Control for a Business Unit and GL Ledger Group

To set up commitment control for a business unit and GL ledger group, use the Ledgers For A Unit (BUSINESS_UNIT_LED) component.

This section discusses how to add Commitment Control ledger groups to a business unit and set business unit and GL ledger group options.

Page Name

Definition Name

Usage

Ledgers For A Unit - Definition Page

BUSINESS_UNIT_LED1

Select a GL ledger group for which you want to enable Commitment Control.

Ledgers For A Unit - Commitment Control Ledger Options Page

BUSINESS_UNIT_LED5

Enable Commitment Control for a business unit and GL ledger group, add control budget definitions (Commitment Control ledger groups), and set up related options.

To set up Commitment Control for a business unit and GL ledger group:

  1. Select (Set Up Financials/Supply Chain > Business Unit Related > General Ledger > Ledgers For A Unit > Definition).

  2. On the Definition page, select a ledger type of Detail Ledger and the ledger group whose transactions you want processed against Commitment Control budgets.

  3. On the Commitment Control Options page, select Enable Commitment Control.

  4. In the Include Pre-Encumbrance in RSA field, select Include, Exclude, or Default.

    This determines whether pre-encumbrance amounts reduce the remaining spending authority or available budget balance.

    Default instructs the system to keep the selection that you made when you established the Commitment Control ledger group on the Ledger Group - Definition page.

    See Establishing Commitment Control Ledger Groups.

  5. Select the Commitment Control ledger groups against which to budget check transactions for this business unit and GL ledger group.

    You can associate multiple Commitment Control ledger groups with a particular GL ledger group. For example, you can have both expenditure and revenue control budgets, as well as organizational and departmental budgets. You can associate all of these with the same GL ledger group.

  6. (Optional) If you previously set up entry events processing for General Ledger, select Disabled, Optional, or Required for the budget journals that you post to each Commitment Control ledger group.

    If you disable entry events for a Commitment Control ledger group, you cannot enter entry events codes when you create budget journal entries or budget closing journal entries. If you make entry events optional, you can enter entry events codes but you are not required to do so. If you make entry events required, the Commitment Control Posting (FS_BP) process and the Closing Run Control Validation (GLS1211) process fail any journals that you attempt to post without including entry events codes.

  7. (Optional) If one of the Commitment Control ledger groups is a Commitment Control Detail ledger group (for capturing pre-encumbrance and encumbrance transactions at the detail level), select Commitment Detail Ledger.

    You can select only one Commitment Control detail ledger group per business unit.

    Note: No validation is performed on RSA for the ledger group identified as the Commitment Detail Ledger, which is used to track pre-encumbrances and encumbrances, at a detail level without performing the remaining spending calculations

    See Commitment Control Detail Tracking Ledger Groups.

  8. (Optional) Select Allow Incr Spending Authority (allow increased spending authority) to allow credits to increase a control budget's available budget balance so that it exceeds the original budgeted amount.

    For example, if you make a purchase in Budget Period 2010Q1, return the item, and issue a credit in Budget Period 2010Q2, this credit can increase the available budget balance in Budget Period 2010Q2 above the original budgeted amount. This option enables you to prevent or allow such an increase.

You can also use the Ledgers for a Unit component to:

  • Indicate the control budget definitions that you want to associate with the business unit and GL ledger group.

    The system uses this information to determine against which control budgets the Budget Processor checks source transactions for the business unit.

  • Select whether pre-encumbrance transactions affect the available budget balance calculation.

  • Identify the Commitment Control Detail ledger group for the business unit.

  • Select whether credit transactions can increase the available budget balance above the originally budgeted amount.

You can associate as many budget definitions as necessary with a particular GL ledger group, but each budget definition can be associated with only one GL ledger group for a particular business unit. If you attach multiple control budget definitions, the Budget Processor uses the rules for the control budget definitions to determine which budget journal entries and which source transactions are checked against particular budgets.