Project Management

Get Involved. Join the Conversation.

Topic

    Paul Fernandez
    How to override Budgetary Control as and when needed for...
    Topic posted October 12, 2019 by Paul FernandezBronze Medal: 1,250+ Points, tagged Grants Management, Project Costing 
    25 Views, 7 Comments
    Title:
    How to override Budgetary Control as and when needed for Award/Projects?
    Summary:
    How to override Budgetary Control as and when needed for Award/Projects?
    Content:

    How to override Budgetary Control as and when needed for Award/Projects?

    We have a requirement to override budgetary control as and when needed (to enter Misc Expenditures for Payroll Costs) on an Award/Project combination.

    Requirement Example:

    1. We have an award/project budget for 100,000.00 with Budgetary Control enabled at the Award/Project level with the Control level as Absolute.
    2. Costs incurred so far is 75,000.00 and available balance is 25,000.00
    3. New expenditure batch is for 30,000.00 and it fails Funds Check.
    4. Therefore, we need to override the Budgetary Control and let this expenditure go through and get the available balance to -5,000.00
    5. And this means, we have to temporarily change the Budgetary Control setting to Advisory, (let the expenditure go through) and put it right back to Absolute so that it will not allow any other expenditures to pass the Funds Check.

     

    Given the above requirement:

    1. I am not able to use the Budgetary Control Exception using a Transaction Source (because that is global and allows any transaction that come through that Transaction Source). Also, it does not reduce the available balance in the Control Budget.
    2. I can not also set the Budgetary Control to Advisory from the Budgetary Control Setting of the Budget Generation Option for the Award/Project Budget from the very beginning. This will let all expenditures go through without any Funds Checking (or rather only with Advisory). Because when the budget is base-lined, the Control Budget would be created with whatever setting is in the Budgetary Control Setting of the Budget Generation Option. So, budget base-lining appears to be the trigger that sets the Control Level in the Control Budgets.
    3. Therefore, the only way I found, is to go to the Award/Project budget and change the Budgetary Control Setting to Advisory every time this requirement is necessary and baseline the budget. This would update the Control Budget and change the Control Level to ‘Advisory’ and then create the ‘specific expenditure with the override’ so that it goes through the Funds Checking without fail.
    4. And, immediately go back to the budget again, and change the setting to ‘Absolute’ and baseline again which would update the Control Budget and change the Control Level to ‘Absolute’ and enforce the Absolute funds checking.
    5. This means, I have to perform the steps 3 and 4 every time there is this requirement (in every award/project combination) and it is not an easy process to go through.

    Trying to find out if there is another better/easier way to handle this. Any suggestions appreciated.

    Thanks

    --Paul

    Version:
    19C

    Comment

     

    • Anandhan Erulappan

      Hi Paul,

      Do you have Separate TAD ( Transaction Account Definition ) configured for Project Costing Module ? It is necessary to have separate TAD to get rid from this issue..

      Thanks

      Anandhan

    • Glen Ryen

      Hi Paul,

      Who defines 'as and when needed' that you can override?  Doesn't that defeat the purpose of absolute control?

      Glen

      • Paul Fernandez

        Glen,

        In this scenario, the client decides 'as and when needed or necessary'. The 'Absolute' control is put in place as the norm. However, if they have certain costs (eg: payroll costs), that they have to allow, then they need to have the flexibility to change it from 'Absolute' to 'Advisory'. It is there in EBS and the client is already using the feature.

        Does it defeat the purpose of absolute control? It is debatable given their requirement to do it when necessary.

        Hope you understand.

        --Paul

    • Anandhan Erulappan

      Hello Paul,

      Try to review and follow these steps,

      Set Up Default Budget Account

      Before enabling an account based control budget for budgetary control, project application administrators must set up a default budget account for cost transactions. You can create a default budget account for transactions from various sources by:

      Creating a transaction account definition

      Associating the transaction account definition to your ledger

      Creating a Transaction Account Definition
      When you import a transaction into the Costs work area, the application derives the budget account using the account rule assignments that you define for your transaction account type in the transaction account definition. Perform the following steps to create a transaction account definition.

      Click Navigator > Setup and Maintenance, and search for the Define Transaction Accounting for Project Financial Management task.

      Click the Define Transaction Accounting for Project Financial Management link.

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

      The application provides the predefined transaction account definition PPM Default Account Generation 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.

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

      Edit the account combination and segment rules according to your business needs. You can create new account combination and segment rules and associate them with your transaction account type.

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

      Click OK to close the confirmation message window.

      Click Done.

      Associating 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. Perform the following steps to associate a transaction account definition to your ledger.

      Click Navigator > Setup and Maintenance, and search for the Define Transaction Accounting for Project Financial Management task.

      Click the Define Transaction Accounting for Project Financial Management link.

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

      Search for your ledger.

      Expand the ledger in the Search Results table and select Project Costing.

      Click Edit Accounting Options for Project Costing.

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

      Click Save.

      Hope this helps.

      -Anandh

      • Paul Fernandez

        Anandhan,

        Thanks for the info. I have done this for Importing Receipts from Cost Management. How does this help with the Budgetary Control Override?

        I am not sure of the relationship between the two unless I am missing something here. Can you please contact me directly.

        Thanks

        --Paul

    • Deepti Deshpande

      Hi Paul,

      You would have to create a new budget version. On the new budget version with the same budget amounts, click on planning options. Here, on the Budgetary Controls Setting, you can select the appropriate Control Level (Advisory) and Baseline the budget.

      When you want to revert to Absolute, repeat the same steps and create a new Budget Version.

      • Paul Fernandez

        Hi Deepti,

        Thanks for your input.
        I am already doing it as step 3 and 4 of my solution as follows:
        ******
        Therefore, the only way I found, is to go to the Award/Project budget and change the Budgetary Control Setting to Advisory every time this requirement is necessary and baseline the budget. This would update the Control Budget and change the Control Level to ‘Advisory’ and then create the ‘specific expenditure with the override’ so that it goes through the Funds Checking without fail.
        And, immediately go back to the budget again, and change the setting to ‘Absolute’ and baseline again which would update the Control Budget and change the Control Level to ‘Absolute’ and enforce the Absolute funds checking.
        *********

        I was trying to find out if there is an easier way to do it.

        Thanks anyways.

        --Paul