Budgetary Control Validation Options for Control Budgets

Determine how a transaction is controlled during budgetary control validation using the validation options for control budgets. Set up the following options:

• Control level:

  • Absolute: Stops transaction processing if there are insufficient funds after the tolerance.

  • Advisory: Provides a warning if there are insufficient funds after the tolerance.

  • Track: Provides no notifications or warnings about insufficient funds. This control level is used to report on funds consumption with no impact on the transaction lifecycle.

  • None: Provides no budgetary control validation. Funds aren't reserved and transactions aren't tracked. This control level is often used with supplemental rules.

• Tolerance: The acceptable amount or percentage over the budget amount. A warning appears when the tolerance is exceeded.

• Override: An option to continue if budgetary control fails due to insufficient funds based on funds available by period and account, or because the budget period is closed.

• Supplemental rules: Exceptions to the control level and tolerance settings.

Supplemental Rules

Supplemental rules create exceptions to the control level and tolerance settings defined in the control budget header. When multiple supplemental rules apply, the highest control level and the lowest tolerance amount or percentage are used.

You can define supplemental rules using the following attributes:

• Business unit

  • If you enter a business unit, this rule won't apply to transactions that don't have a business unit, such as journal entries

• Control budget segment values

  • You can select a range to populate the segment values

  • You can select a parent value to populate all detail segment values assigned to that parent

• Additional segment values

  • You can specify any chart of accounts segment that's not a control budget segment and if a tree hasn't been specified, you can select a range to populate the segment values

  • If control budgets are created from Projects, you can specify any project attributes that aren't a control budget segment

  • Additional segment filters aren't used for budget entry transactions.

• Transaction attributes

  • Business function:

    • Procure to pay control budget: All, Requisitioning, Procurement, Expense management, Receiving, Payables invoicing, Project accounting, and Journal entry.
    • Cash control budget: All, Journal entry, Payables payment, Billing and revenue management, and Budget entry.

  • Journal source: Journal sources defined in GL, All, and No value

  • Journal category: Journal categories defined in GL, All, and No value

  • Natural account type: All, Asset, Budgetary credit, Budgetary debit, Expense, Liability, Owner's equity, and Revenue

  • Receiving destination type: All, Expense, Inventory, and No value

Note: If you select All, the supplemental rule applies to all transactions, regardless of whether a transaction attribute is blank or has a value. If you select No value, the supplemental rule only applies when the attribute is blank. For example, if a supplemental rule is defined with the Receiving Destination Type set to No value, only transactions without a Receiving Destination Type are subject to this supplemental rule.

Note: Budget import for cash control budgets can use supplemental rules to assign a control level different from the control level defined on the control budget header. If the control level is none, budget balances aren’t updated. This is unlike procure to pay control budgets with the control level of none, that update the budget balances and don’t consider supplemental rules.

This table shows how the control budget processing type updates budget balances and considers supplemental rules on budget import.

Control Budget Processing Type	Update Budget Balances when Control Level is None	Consider Supplemental Rules on Budget Import
Procure to pay	Yes	No
Cash	No	Yes