How You Define the Funds Reservation Point for Purchasing Documents

You can use budgetary controls to select the point in time at which funds are reserved for requisitions and purchase orders. Enable funds to be reserved at document submission or upon completion of approvals.

To set up the funds reservation point for requisitions and purchase orders, use the Manage Budgetary Control and Encumbrance Accounting page. Find the page from the Setup and Maintenance work area, Financials offering, Budgetary Control and Encumbrance Accounting functional area, Manage Budgetary Control task.

You define the funds reservation point for documents at the business unit level. In the Procure-to-Pay Business Functions section, you can set the reservation point for the Requisitioning and Procurement business functions. For a business function, set the reservation point to one of these options:

• Submission: Funds reservation is done at document submit.

• Approval: Funds reservation is done at the completion of document approval.