How Financial Plan Types and Project Budget Versions Work With Budgetary Control

Financial plan types and budget versions in Oracle Project Control contain attributes that enable you to automatically create control budgets in Budgetary Control.

Configuring these attributes on a financial plan type enable the budget versions that you create from that financial plan type to create control budgets.

The following figure shows the components of a financial plan type that you must configure to enable a project budget version for creating a control budget in Budgetary Control. The general budget information includes the plan class, planning amounts, and the enable budgetary control option. The budgetary control settings are the control budget, control level, default rate type, and tolerance percentage.

General Information and Budget Options

Select these attributes as follows on the Edit Financial Plan Type page:

• Plan Class: Budget

• Planning Amounts: Cost Only

• Enable budgetary controls

Enable a Project Template for Budgetary Control

As a project application administrator, to enable a project template for budgetary control, click Basic Information in the Edit Project Template page and then click Edit in the Basic Information section and select the Enable budgetary control check box in the Edit Basic Information dialog box.

When using a project template that's enabled for budgetary control, by default, all the projects that you create using this template are enabled for budgetary control. When budgetary control is enabled for the project, you can create budgets with budgetary control using the financial plan type that's enabled for budgetary control. Similarly, you can create budgets using the financial plan type that isn't enabled for budgetary control.

Note: A project can have only one financial plan type that's enabled for budgetary control. If a financial plan type that's enabled for budgetary control is used by a budget version on a project, then you can't create another budget version with a different financial plan type enabled for budgetary control.

Managing Budget by Award and Funding Source for a Sponsored Project

For sponsored projects that are funded by multiple awards and funding sources, you can maintain a budget version for each award and project combination. You must enable the plan type as an approved cost financial plan type and an award financial plan type to view the budget, commitment, and actual amounts in the Award Overview page. In addition, you can enable this financial plan type for budgetary control.

You can't create an award using the Quick Create Award method if the project or project template isn’t enabled for budgetary control, but the award financial plan type that you select as the default plan type should be enabled for budgetary control.

Budgetary Control Settings

Control spending based on the budget amounts allocated to project tasks, either at the top task or the lowest task of the task structure. Additionally, control spending by the amounts planned for the top resource or the lowest resource to be within the project budget.

Budgetary control at the task level provides detailed level spending control. For example, control the budget for each phase of the project, where a top task represents a phase of work with its own distinct budget. The resource breakdown structure allows for further granular control. For example, control labor or supplies within different departments, where the top resource represents the department and the lowest resource represents the type of cost.

The Budgetary Control Settings tab in the Planning Options of the financial plan type and budget version contains the attributes for creating control budgets. The following table describes the attributes and their impact on control budgets.

Attribute Name	Description
Control Budget	The level in the project hierarchy where you can enter budgetary control amounts. Control amounts in the budget version at the project, task, resource, award, and funding source level. The control budget contains these amounts and the control budget account segments are created based on the task, resource, and funding source control you selected. For sponsored projects associated to multiple awards or funding sources, you can set one of the following control segments: Award-Project Award-Project-Top Task Award-Project-Lowest Task Award-Project-Top Resource Award-Project-Lowest Resource Award-Project-Top Task-Top Resource Award-Project-Top Task-Lowest Resource Award-Project-Lowest Task-Top Resource Award-Project-Lowest Task-Lowest Resource Award-Project-Funding Source Award Project-Top Task-Funding Source Award Project-Lowest Task-Funding Source Award Project-Top Resource-Funding Source Award Project-Lowest Resource-Funding Source Award Project-Top Task-Top Resource-Funding Source Award Project-Top Task-Lowest Resource-Funding Source Award Project-Lowest Task-Top Resource-Funding Source Award Project-Lowest Task-Lowest Resource-Funding Source These control budget segments are displayed if you enable a financial plan type as award financial plan type and also enable it for budgetary control.
Control Level	The level of funds reservation for expenditures that impact the control budget. The levels are: Absolute: Reserve funds for transactions that impact the control budget only if funds are available in the budget. Advisory: Reserve funds for transactions that impact the control budget whether or not enough funds are available in the budget. However, you can review any exceptions that are generated if a transaction exceeds the funded amount. Track: Reserve funds for all transactions that impact the control budget. Don't issue a notification if a transaction doesn't have enough funds in the budget. Do Not Create Control Budget: Don't create a budget in Budgetary Control for this budget version. An existing award financial plan type displays all the new control segments, including the funding source segments. However, the default control level for the segments that contain the funding source attribute displays as Do Not Create Control Budget. If a baseline budget version exists for an existing award project budget, then you can't change the control levels for the segments containing the funding source attribute from Do Not Create Control Budget to any other value. For a financial plan type, you can't set a higher control level at the lowest combination of segments if a lesser control level exists at the highest combination of segments. For example, if Award-Project is Advisory, then Award-Project-Top Resource or Award-Project-Funding Source can't be Absolute. A track control budget is created for the lowest level of the control segment combinations: Award-Project-Top Resource-Funding Source or Project-Top Resource. Balances for the higher level combination of segments are rolled up from this track level control budget.
Default Rate Type	The rate type that converts the amount of a transaction to the currency used in the control budget before the funds check. The default rate type that's defined before generating the control budget combinations is valid and applicable to all control budgets.
Tolerance Percentage	The percentage by which a transaction can exceed the budgeted amount before Budgetary Control issues a warning notice or restricts the funds reservation.

Baseline Budgets with Future-Dated Budget Managers

You can set budgetary control enabled project and award budgets that have future-dated budget managers to baseline. For example, if the project manager for a budgetary control enabled project budget or the principal investigator for a budgetary control enabled award budget is active in the future, even then you can set such budgets to baseline. This feature applies to both existing managers who will play the role in future and managers who will be hired in the future for the role.