Commitment Accounting, Budget Checking, and Spend Freeze

COMMITMENT ACCOUNTING Important: With Commitment Accounting, the amount at

Spend Authorizations provide guidelines for spending limits in your the header level is hidden. At least one Spend
organization. With Commitment Accounting, Spend Authorizations are Authorization Line must be entered.
assigned to an operational journal.
The Budget minus the Commitment (Spend Authorization) minus the
Actuals (Expense Report) equals the Available Budget in real time.

Follow these steps to configure your tenant for Commitment

Accounting. Click here for detailed information describing the steps
below.
1. Set Up and Update Journal Sources
2. Create and Organize Ledger Accounts
3. Configure Account Posting Rules
4. Create Supplier Contract Types
5. Create Ledgers
6. Create and Open Ledger Years and Periods
7. Configure Budget Checking

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Commitment Accounting, Budget Checking, and Spend Freeze

Note: With Commitment Accounting enabled, accounting Note: With Commitment Accounting enabled, balances of
is generated when the Spend Authorization business Expense Reports marked final are liquidated into a
process is complete. Commitment Journal (i.e. Spend Authorization
Commitment Liquidation).

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Commitment Accounting, Budget Checking, and Spend Freeze
BUDGET CHECKING
When configured, users budget check spend authorizations during
submission reducing the need for manual budget checking or custom
validations.
Users find out in real time if they have exceeded their budget, this
leads to faster approval.
Reviewers know if a spend authorization has passed budget check
during their review.
Follow these steps to configure your tenant for Budget Checking.
Click here for detailed information describing the steps below.
1. Create Ledgers
Note: Modify the Spend Authorization Business Process to
2. Edit Business Processes
add Check Budget Action steps before and after the
3. View and Edit Domain Security Policies Approval. Mark 2nd Check Budget step as Completion step.
4. Set Control Options for Spend Plans

Note: Commitment Accounting for Spend Authorizations

must be enabled to generate accounting entries for the
commitment ledger. This is required before setting up
Budget Checking for Spend Authorizations.

Note: Standard budget check functionality is available from

Spend Authorizations.

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Commitment Accounting, Budget Checking, and Spend Freeze

Note: Override requests are available for Spend

Authorizations. Approval process routed through the
employee Inbox. 5. Add a new row with an Order of aa.
6. Set row Type to Approval and Group to Expense Partner > click
OK.
FREEZE COMPANY SPEND
A spend freeze allows your organization to control spend at certain
times of the calendar year. With this configuration, spend
authorizations in process are routed to an expense partner, they can
approve, deny, or send back the request.
To configure your tenant for this functionality, follow the steps below.
EDIT BUSINESS PROCESS DEFINITION
1. Modify the Spend Authorization Business Process.
2. Enter bp: spend in the Search bar, navigate to the Spend
Authorization (Default Definition).
3. From the Related Actions on the definition, select Business CREATE A CONDITION RULE
Process > Edit Definition > click OK. 1. Click the Related Actions on the newly created step and navigate
4. Confirm the Effective Date > click OK. to Business Process > Maintain Step Conditions.
2. Click OK on the Effective Date screen.
3. Click Add Row icon, select Create Condition Rule and click OK.

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Commitment Accounting, Budget Checking, and Spend Freeze
4. Add the following Information: INITIATE A SPEND FREEZE
Field Name Entry Value 1. From the organization’s Related Actions, select Worker Spend >
Manage Spend Freeze.
Description Spend Freeze on Company -
Yes 2. Select Freeze Spend Authorizations. You can also Freeze
Requisitions and Purchase Orders.
Rule Conditions And
3. Click OK.
Source External Field or Spend Authorization Spend
Condition Rule Freeze for Company
Relational Operator Is not blank

5. Click OK twice, your new condition rule should appear in the If

column of the Business Process steps.
6. Click Done.

Note: Once this process is completed, all Spend

Authorizations will be routed to the Expense Partner for
approval, controlling your organization’s spend freeze.

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