9/5/24, 14:49 Note: 2440439.

Note: 2440439.2
Copyright (c) 2024, Oracle. All rights reserved. Oracle Confidential.

Budgets and Budgetary Control Overview

Budgetary Control : Overview

Budgets are the projected or estimated expenses for any specific period/year or periods/years. Budgets are mainly defined to ensure proper utilization of available cash resources
and to prevent any unauthorized monetary transactions.

In Oracle E Business Suite, users can define both Reporting Budgets and Funding Budgets . Reporting Budgets can be used to generate variance reports by comparing the
budget balances with actual balances. These reports assist the organizations in better planning of the Budgets.

Using Funding Budgets, user can control the expenditure and ensure that the actual amount does not exist the planned/allocated budget.This control is placed on the actual
journals using Budgetary Control feature of E-Business Suite.

Using budgetary control, one can define budgets for specific periods and for specific accounts.These features also provide the flexibility of defining controls at various levels and
with different types of funds check as per the requirement of the users.

To use budgetary control, the ledger should have the budgetary control option enabled and Budgets and Budget Organizations need to be defined.

'Budget' defines the periods for implementing the budgetary control. 'Budgetary Organization' defines the code combinations that need budgetary control.

Funds Check Level - Absolute and Advisory

Actual Journals can have Absolute Funds Check or an Advisory Fund Check. If the actual amount cannot exceed a budgeted amount, then Absolute Funds Check can be set for
the accounts. In cases where actual funds can exceed the budgeted funds, then Advisory Funds Check can be set for the accounts. Setting the funds check as absolute or advisory
depends on the nature of the accounts and the business requirements.

Absolute or Advisory funds check can be set at different levels as follows:

Detail Level Budgetary Control:

Detail level budgetary control would be set for the accounts assigned to a budget organization. For each code combination assigned to a budget organization, either an absolute
funds check or an advisory funds check can be selected. Detail level budgetary control would be used for independent expense accounts which need better control and
monitoring.

Summary Template ( Summary Level ):

Budgetary control at the summary level can be used for controlling the expenses at a group or a department or a cost center level. Using summary template level controls,
budgets allocated at the department level can be used for different expenses incurred by the department or cost center. Summary level budgeting can be used when individual
expenses within a cost center are not significant but the total expenses of the cost center are significant.

Source and Category Level Budgetary Control:

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 1/11
9/5/24, 14:49 Note: 2440439.2
Funds check level can be set for a specific source and category combination using a budgetary control group. If budgetary control is set for a specific source and category
combination, any actual journal entered with that specific source and category would need to pass the funds check. Source and category level budgeting can be used where
budgeting is not required for all transactions but required when transactions are entered with a specific source and category combination.

Note : Detailed Steps for Budgetary Control Setup and Usage can be viewed in Budget Video Series Tab

Budgetary Control - Key Setups :

Enable Budgetary Control for Ledger

Define Budget
Define Budget Organization
Create and post Budget Journals
Create Summary Template ( Summary Level Budgetary Control )
Define Budgetary Control Group

References:

Note : 1928941.1 - Budgets and Budgetary Control- Setup and Usage

Note : 136633.1 - General Ledger FAQ for Budgets
Note : 2079451.1 - R12: General Ledger Budgetary Control Setup and Funds Availability/Inquiry Diagnostic

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 2/11
9/5/24, 14:49 Note: 2440439.2

Copyright (c) 2024, Oracle. All rights reserved. Oracle Confidential.

Budetary Control - Video Setups

EBS - Budgetary Control Prerequisite Setups

Budgetary Control Prerequisite Steps :

Log into General Ledger : Navigate to Setup-Financials-Accounting setup manager-

Accounting setups

Query the ledger and update Accounting options.

Select update for the ledger under Setup Step.
Go to Advanced Option: Budgetary Control.
Select Enable Budgetary Control.
Save the changes.

Log into System Administrator : Profile-System.

Query the profile Budgetary Control Group.

Set the profile as Standard at site level.
Save the changes

EBS - Budget Setup

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 3/11
9/5/24, 14:49 Note: 2440439.2

Budget Setup

Log into General ledger : Navigate to Budget-Define-Budget

Enter a Name and Description for the Budget.

Open the list of values of status and select 'Open'
Select the First and Last periods of the Budget. Save the changes
Select Open Next Year.

EBS - Budget Organization

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 4/11
9/5/24, 14:49 Note: 2440439.2

Budget Organization Setup

Log into General ledger : Navigate to Budget-Define-Organization

Enter a Name and Description for the Budget Organization

Select the display sequence . Enter the required sequence
Select Ranges . Give the required code combination
Select Budgetary Control. Select the Funds check as Absolute , Amount Type as YTD,
Boundary as Year and select the required Funding Budget
Save the changes.
Concurrent program to be completed normal.

EBS - Budget Journals

2440439.2 - EBS - Budget Journals
Create Budget Journals

Log into General Ledger : Navigate to Budget -Enter -Journals

Select the Budget, Budget Organization and Accounting periods

Select the code combination for which the budgets have the be entered
Enter the required amount for the code combination
Select Create Journals
Enter Journal Batch Name and select required Category.

 Select Check funds and then Reserve Funds.

Select Done. Concurrent program to be completed normal
Navigate to Journal -Enter. Review the Budget Journal. Post the Budget Journal

  0:00 / 2:44  1x  

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 5/11
9/5/24, 14:49 Note: 2440439.2

EBS - Absolute Funds Check

Journal - Absolute Funds Check

Log into General Ledger : Navigate to Journal - Enter

Enter Name and Description for the Journal.

Select the required category
Select the code combination with Absolute Funds check
Enter amount for the journal.
Select Funds check. If transaction fails funds check then check the available funds at
Inquiry- Funds
Modify the journal amount as per the available funds. Save the changes
Select Check Funds
Select Reserve Funds
Select Post

EBS - Journal - View Results

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 6/11
9/5/24, 14:49 Note: 2440439.2

Journal - View Results

Log into General Ledger : Navigate to Journal - Enter

Review the journal for which Funds Check Failed

Keep the cursor on the specific code combination
Select View Results

EBS - Summary Template

Summary Template Setup

Create Budget: Log into General Ledger : Navigate to Budget-Define-Budget

Enter a Name and Description for the Budget.

Open the list of values of status and select 'Open'
Select the First and Last periods of the Budget. Save the changes
Select Open Next Year

Create Parent Value: Log into General Ledger : Navigate to Setup - Financials - Flexfields -
Key - Values

Enter a value and give the description

Select Parent Check Box
Select Allow Posting as No in Segment Value qualifiers. Save the changes
Select Define Child Ranges. Select the required child values. Save
Concurrent request Compile Value Set hierarchies to be completed normal

Create Budget Organization: Log into General ledger : Navigate to Budget-Define-

Organization

Enter a Name and Description for the Budget Organization

Select the display sequence . Enter the required sequence

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 7/11
9/5/24, 14:49 Note: 2440439.2
Select Ranges . Give the required code combination
Select Budgetary Control. Select the Funds check as Advisory , Amount Type as PTD,
Boundary as Period and select the required Funding Budget
Save the changes.
Concurrent program to be completed normal.

Create Rollup groups: Log into General ledger : Navigate to Setup - Financials - Flexfields -
Key - Groups

Query the Natural Account of the Account structure

Create rollup group
Save the changes

Assign Rollup Group to Parent Value: Log into General Ledger : Navigate to Setup -
Financials - Flexfields - Key - Values

Query the Parent Value which has the child values assigned
Assign the Rollup Group
Save the changes
Concurrent request Compile Value Set hierarchies to be completed normal

Create Summary Account: Log into General Ledger : Navigate to Setup - Account - Summary

Enter a Name for the Template

Select Template. Choose the required values ( T, D ) for all segments except natural
account segment
Select the Rollup Group for the natural account
Enter a Description
Select the Earliest Period
Select Budgetary Control
Choose the Funds Check Level as Absolute , Select Debit. Select Amount Type as
Period to Date , Boundary as Period. Select the required Funding Budget
Save the changes
Concurrent request to be completed normal

EBS - Summary Level Absolute Funds Check

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 8/11
9/5/24, 14:49 Note: 2440439.2

Journal - Summary Level Absolute Funds Check

Create Budget Journals: Log into General Ledger : Navigate to Budget -Enter -Journals

Select the Budget, Budget Organization and Accounting periods

Select the detail code combination for which the budgets have the be entered. This is
the code combination which belongs to the summary template
Enter the Amounts
Select Create Journals
Enter Journal Batch Name and select required Category.
Select Check funds and then Reserve Funds.
Select Done.Concurrent program to be completed normal
Navigate to Journal -Enter. Review the Budget Journal. Post the Budget Journal

Create Journal: Navigate to Journal - Enter

Enter a new journal using one of the code combination that belong to summary
template
Select Check Funds
Select View Results . Check the funds check for the summary account and the detail
account

EBS - Source and Category Absolute Funds Check

Journal - Source and Category Level Absolute Funds Check

Define Budgetary Control Groups:

Log into General Ledger : Navigate to Budgets - Define - Controls

Select the Required Source and Category . Select the Funds Check Level as Absolute

Save the changes

Create Budget:

Log into General ledger : Navigate to Budget-Define-Budget.

Enter a Name and Description for the Budget.

Open the list of values of status and select 'Open'
Select the First and Last periods of the Budget. Save the changes
Select Open Next Year.

Create Budget Organization:

Log into General ledger : Navigate to Budget-Define-Organization

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 9/11
9/5/24, 14:49 Note: 2440439.2
Enter a Name and Description for the Budget Organization
Select the display sequence . Enter the required sequence
Select Ranges . Give the required code combination
Select Budgetary Control. Select the Funds check as Advisory , Amount Type as
YTD, Boundary as Year and select the required Funding Budget
Save the changes.
Concurrent program to be completed normal.

Create Budget Journals:

Log into General Ledger : Navigate to Budget -Enter -Journals

Select the Budget, Budget Organization and Accounting periods

Select the code combination
Enter the Amounts
Select Create Journals
Enter Journal Batch Name and select required Category.
Select Check funds and then Reserve Funds.
Select Done.Concurrent program to be completed normal
Navigate to Journal -Enter. Review the Budget Journal. Post the Budget Journal

Create Journal:

Log into General Ledger : Navigate to Journal - Enter

Enter a Journal and select the category for which Absolute Funds Check is defined
Select the code combination and enter the Amount
Select Check Funds
Select View Results

EBS - Budgetary Control Setup Diagnostic

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 10/11
9/5/24, 14:49 Note: 2440439.2

Budgetary Control Setup Diagnostic

Download the script 'Budgetary_Control_Diagnostic_Script' into local folder from the Note :
2079451.1

Connect SQL/PLUS as apps user

Run the script using '@<path of the file>\<script file name>'

Enter the below parameters:

Enter the File Name : Provide File storage path

Enter the Ledger Name: Provide Ledger Name
Enter the Responsibility Name :General Ledger Responsibility Name
Enter the User Name : User running the script
Enter the Code Combination : Required Code Combination
Enter the Open Period Name : Required Period
Note: Parameters Ledger Name, Responsibility Name, User Name , Code combination and
Period Name are Case Sensitive

https://support.oracle.com/epmos/faces/DocumentDisplay?_afrLoop=398895087821204&parent=DOCUMENT&sourceId=2740198.1&id=2440439.2&_afrWindowMode=0&_adf.ctrl-state=luuyyj46c_482 11/11