Set Up Default Budget Account

As a project application administrator, you must set up a default budget account for cost transactions before you enable an account based control budget for budgetary control.

You can create a default budget account for transactions from various sources by:

1. Creating a transaction account definition

2. Associating the transaction account definition to your ledger

Create a Transaction Account Definition

When you import costs for a project that's enabled for budgetary control, the application derives the budget account using the account rule assignments that you define for the Project Costing Budget Account transaction type in the transaction account definition.

1. In the Setup and Maintenance work area, go to the Define Transaction Accounting for Project Financial Management task.

2. Click the Manage Transaction Account Definitions link. Set the scope to Project Costing if not already set.

   The application provides the PPM Default Account Generation Definition predefined transaction account definition, which is selected by default. You can create a copy of this transaction account definition and configure it. To copy the definition, select Duplicate from the Actions menu.

3. Enter a name and short name for your transaction account definition. You can optionally select a chart of accounts.

4. Edit the account combination and segment rules according to your business needs. You can create an account combination rule and segment rules or segment rules and then associate them with the Project Costing Budget Account transaction account type.

5. Click Activate to activate your transaction account definition. Verify that the status changes from Incomplete to Active.

6. Click OK to close the confirmation message window.

7. Click Done.

Associate a Transaction Account Definition to a Ledger

Budgetary control uses the budget account to derive the budget amount for validating the transaction cost for your ledger.

1. In the Setup and Maintenance work area, go to the Define Transaction Accounting for Project Financial Management task.

2. Click the Manage Subledger Accounting Options link. Set the scope to Project Costing if not already set.

3. Search for your ledger.

4. In the search results, select the row that corresponds to the Project Costing application name for the selected ledger.

5. Click Edit Accounting Options for Project Costing.

6. Select your transaction account definition from the list of values in the Transaction Account Definition field.

7. Click Save.

Note: If a transaction fails indicating that the account derived by account rules can't be created or accessed, then identify if the failure is in the project control budget or the General Ledger control budget. If the failure is in the General Ledger control budget and the account generated for the budget transaction is incorrect, then review the Transaction Account Definition to verify if the rules were defined correctly to derive an account and update the rules accordingly.