Understanding PeopleSoft Commitment Control

Commitment Control is an optional feature of the PeopleSoft Financials, Enterprise Service Automation, and Supply Chain Management product lines that enables you to control expenditures actively against predefined, authorized budgets. In particular, Commitment Control enables you to:

• Create and maintain control budgets.

• Check actual transactions (such as actual expenditures and revenues) against control budgets.

• Check imminent future financial obligations (pre-encumbrances and encumbrances) against control budgets.

• Check recognized revenue against revenue estimate budgets.

When you set up control budgets, you associate them with a particular General Ledger business unit. You also define the kinds of transactions you are to check against your control budgets. Once your budgets are established, you check these transactions against your budgets, the passing or failing of the transactions depending on the remaining available budget amount and the degree of budgetary control you set up for your budgets.

Depending on how you set up Commitment Control security, users can adjust a transaction that fails budget checking or adjust the budgets that the transaction failed against and budget-check the transaction again. Also, if you grant users the authority, users can override budget checking and allow a transaction to exceed the budget.

In this section, the following are discussed:

• Commitment accounting.

• The underlying data structure of PeopleSoft Commitment Control.

• The budget-checking process.

• An example of control budget setup and budget checking.

• Accounting examples.

• ChartField security.