Enterprise Structures
Every enterprise has different structures that describe its operations and provide basis for reporting. Most of the enterprise structures for Budgetary Control can be shared with General Ledger unless you have different requirements for Budgetary Control.
You need these enterprise structures for Budgetary Control.
Calendars
You create calendars to define accounting year and the period it contains. You can either share calendars between General Ledger and Budgetary Control, or you can define a calendar for only budgetary control purposes.
The Budget Calendar assigned to the control budget determines how much you can spend in each period. The period interval defined in the budget calendar affects the funds available as budget amounts are summarized according to the calendar period interval.
Use a yearly calendar or a monthly calendar or both to achieve the desired budget available for consumption. This example shows how the calendar period interval affects the funds available.
Example
Suppose you defined two calendars, one with a yearly period and another with a monthly period interval. Also, you create two control budgets using the calendars defined in this table.
|
Control Budget |
Calendar |
Period Intervals |
Source Budget Type |
Source Budget |
|---|---|---|---|---|
|
Monthly Control Budget |
Monthly Calendar |
Monthly |
Other |
Monthly Control Budget |
|
Yearly Control Budget |
Yearly Calendar |
Yearly |
Control Budget |
Monthly Control Budget |
Suppose $1000 is imported for in each month of 2021 into the Monthly Control Budget. Since the Monthly Control Budget and Yearly Control Budget are linked, budget amounts are loaded into both budgets at import time.
Funds available will be $1000 for each month in Monthly Control Budget and $12000 for the entire year in Yearly Control Budget. We can either use these Monthly Control Budget to report on monthly basis or use Yearly Control Budget to report on yearly basis.
Chart of Accounts
The chart of accounts is the underlying structure for organizing financial information and reporting. The chart of accounts is various value sets available for segments assigned to a ledger. A transaction is recorded with a combination of segment values, this combination is used to identify the budget account in which the transaction has to be budgetary controlled. For more details about chart of Accounts, see the Chart of Accounts section in the Implementing Enterprise Structures and General Ledger guide.
Budget Chart of Accounts
Chart of accounts and values sets are shared between General Ledger and Budgetary Control. For Budgetary Control, you can select a subset of segments for control purposes but you don't have to control every segment. You can also control at the summary segment value level instead of the detail segment value level.
Budget Account
The budget account is a combination of segment values present in Budget Chart of Accounts. The budgetary control process maps the distribution's account (for example, the charge account on a requisition or purchase order) and budget date to control budget's budget account and budget period, respectively, to determine the funds available. Consider the assignment of budget segments and associated tree hierarchies and labels to achieve the correct funds available amount and enforce spending controls and reporting.
Ledgers
A ledger is a record keeping instrument. Transactions are Budgetary Controlled when ledger is Budgetary Control enabled. Control budgets are defined for a ledger and budget accounts are a subset of the chart of accounts associated with the ledger. The Budget Calendar can share the same calendar as the ledger or have its own independent calendar.
Accounting can be created for requisitions and purchase orders when enabled for encumbrance accounting. The subledger accounting method for the ledger determines how the encumbrance journal entries are created. For more information about ledgers, see Ledgers and Subledgers section in the Implementing Enterprise Structures and General Ledger guide.
Several account hierarchies can be created using different Trees and Tree versions to control spending and report at different levels of budget accounts. For more details about account hierarchies, see the Account Hierarchy Trees section in the Implementing Enterprise Structures and General Ledger guide.
Business Unit
A business unit performs one or many business functions. Business units within a budgetary controlled ledger can be either enabled or disabled for Budgetary Control. Business functions within a budgetary controlled enabled business unit can also be enabled or disabled. For more information about business units, see the Business Units section in the Implementing Enterprise Structures and General Ledger guide.