Commitment Control Ledgers and Ledger Groups

Setting up control budget definitions is synonymous with establishing processing rules for a Commitment Control ledger group. Depending on the budgeting requirements of your organization, you may need one or many expenditure budget definitions and one or many revenue budget definitions. For example, your organization may require a high-level appropriation budget definition with one set of rules and a lower-level organization budget definition with another set of rules; or your organization may require a corporate budget definition in one currency and divisional budget definitions in other currencies.

In any case, for each GL ledger group and business unit combination (each actuals ledger) whose transactions you want budget-checked, you need at least one budget definition—that is, a Commitment Control ledger group. You can associate as many budget definitions as you want with a particular GL ledger group for a business unit, but each budget definition can be associated with only one GL ledger group for a particular business unit.

You establish your Commitment Control ledgers and ledger groups (budget definitions) by using the Detail Ledger and Ledger Group components in PeopleSoft General Ledger before you define the rules for your budget definitions (Commitment Control ledger groups) in the Budget Definitions component. However, before you establish your Commitment Control ledgers and ledger groups, you must understand the budget definition process and plan all of the budget definitions that you will use.

To familiarize yourself with the rules and options that you establish in the Budget Definitions component, see the following sections and the section Setting Up Commitment Control Budget Definitions.