Understanding Commitment Control Budget Closing and Withdrawal Without Closing

Budget closing in Oracle's PeopleSoft Commitment Control is independent of fiscal year closing. Just as you can create budgets that span less or more than a fiscal year, you can keep a budget open for more than a year and close a budget at any time.

When the Budget Close COBOL process (FSPYCLOS) closes the budget ledger, it reverses the remaining available budget and marks the budget with a status of closed so that no additional transactions can pass a check against the budget.

When you set up your budget closing, you have the option to close only or to close and roll the remaining available budget balance forward to the new budget period or new fiscal year. If you choose to roll forward balances, you can also specify which ledger amounts (pre-encumbrance, encumbrance, expense, recognized revenue, or collected revenue) reduce the budget amount in the roll forward calculation.

Budget close and automatic withdrawal, or reduction of uncommitted and unobligated budgets, are related functionality and share common pages. Without closing a budget you can withdraw or reduce all uncommitted and unobligated budget amounts by using PeopleSoft reduction or withdrawal functionality and leave a budget at its then existing status. Although the processes are similar, they are sufficiently distinct that reduction of budgets without closing, or withdrawing of uncommitted funds is presented in a separate topic with links and references to common pages and functionality.

Note:

The Funding Source feature is not supported by budget closing functionality.

See Withdrawing or Reducing Commitment Control Budgets Without Closing.

Budget closing involves:

  • Setting up ChartField value sets, budget closing rules, budget period sets, and budget closing sets.

  • Closing and reestablishing pre-encumbrances, encumbrances, or recognized revenues, if you so choose, by canceling and reestablishing the related source documents (such as requisitions and purchase orders) in their source applications (such as Purchasing).

  • Validating the closing set and closing run request.

  • Running the Budget Close process.

  • Running reports and online inquiries that display closing results.

In this overview section, the overall budget closing procedure is discussed and the following topics are elaborated:

  • Fiscal year closing as opposed to budget period closing.

  • Closing and roll forward budget journal entries.

  • Budget close status.

  • Examples of budget close results.