Using Commitment Control

Commitment control enables you to check expenditures against a predefined budget. In PeopleSoft Cost Management, these expenditures typically occur when you expense inventory material to a department or expense account. Commitment control considers actual expenditures and imminent future obligations (encumbrances and pre-encumbrances). The option to use commitment control must be selected at both the installation and ledger group level. In multibook environments, only the primary ledger transactions should be checked against control budgets.

Note:

Commitment control does not apply budget checking to manufacturing transactions.

If you are using commitment control, the accounting entries must pass budget checking before you can pass them to the general ledger system using the Journal Generator process. If you select the Budget Check Accounting Lines check box on the Accounting Line Creation process page, then the Commitment Control Processor process runs on the accounting lines in the CM_ACCTG_LINE table with a BUDGET_LINE_STATUS of N (not budget checked) or E (error in budget check). Once the line passes budget checking, the status changes to V (valid budget check). Entries that do not pass budget checking appear on the CM Transaction Exceptions - Header Exceptions page, where you can resolve the error status by adjusting or redirecting charges to alternate accounts or changing budget periods for the transactions if authorized to do so.

Note:

The Budget Processor process (FSBKBDP3) considers all of the accounting lines in a transaction set together. If one accounting line fails the budget check, the Budget Processor process rejects the entire transaction set.

Commitment Control Statuses

The header of the transaction can have these statuses in the BUDGET_HDR_STATUS field:

Status	Description
N	Not budget-checked.
E	Error: The transaction fails budget checking and does not update the control budget.
V	Valid: The transaction passes budget checking with no errors or warnings and updates the control budget. If commitment control is turned off, all transaction lines are set to V.

The transaction line can have these statuses in the BUDGET_LINE_STATUS field:

Status	Description
N	Not budget checked.
E	Error: The transaction line fails budget checking and does not update the control budget.
W	Warning: The transaction line completes budget checking successfully, but the transactions have warning exceptions. The transaction updates the control budget. The warnings can range from an overridden error to mismatched budget and accounting dates. It issues a warning if the transaction is over the budget amount but less than the tolerance amount.
V	Valid: The transaction line passes budget checking with no errors or warnings and the process creates the journal line for the control budget ledger. If commitment control is turned off, all transaction lines are set to V.

The statuses in the CM_IU_INDICATOR field tell the Commitment Control Processor process whether to pick up the line. If you use the centralized interunit and intraunit processor to create intraunit ChartField balancing entries, then these accounting lines do not need to be budget checked.

Status	Description
N	Not created by the central processor. This transaction is picked up by the Commitment Control Budget Processor process.
Y	Created by the central processor. The Commitment Control Budget Processor process is skipped. The budget statuses are set to V.