Understanding Budget Check
Each agency chooses its budget structure and the level of control it
wishes to impose on that structure. Many agencies do not impose
controls on their budget other than the CC_APPROP and the CC_ALLOT, both
of which are “control” budgets (that is, they will stop a transaction
from processing if the expenditure exceeds its budgeted amount). For these
agencies, transactions are in alignment with allotment and appropriation
levels.
Control
Transactions that exceed the budget will error out during the budget
checking process and will not post. No further processing can be performed
until the amount on the transaction is reduced or the budget is increased
for that ChartField string.
Track with Budget
Transactions that exceed the budget will pass the budget checking process
with a warning message. However, if the ChartField string on the transaction
does not have a budget established and posted, the budget checking process
will fail.
Track without Budget
A budget does not have to exist. Transactions will always pass the budget
checking process with a warning message if a budget is exceeded.
Example # 1 - Track Without Budget
Budget
Ledgers
- In this scenario, both the PO and voucher expenditure had enough
budgeted for this transaction. It will therefore pass
budget check.
- There is no agency budget applied here because
this agency chose not to use a control or track budget.
Encumbrance and Expense Ledgers
- Entries will be recorded in each Commitment Control ledger (depending
on the type of transaction: ENC for the PO; EXP for the voucher).
- Cash will be recorded for the expenditure only. CC_DETAIL will
record both the encumbrance and expenditure entries.
Some Things to be Aware Of:
- There is a parent-child relationship between CC_APPROP and CC_ALLOT.
CC_ALLOT is a lower level of structure with more account detail
than CC_APPROP.
- Individual ledgers are checked simultaneously
during budget check.
Example # 2 - Track With Budget
- An agency purchases some copiers and does use lower levels of control.
In this case there is a control budget and a track budget.
- In this scenario, the transaction had enough
budgeted for the appropriation to purchase the copiers, enough budgeted
for Equipment, enough budgeted for Office Equipment, but not enough
budgeted specifically for the Copiers. The specific ChartField
combination is valid. The transaction will, however, pass
budget check.
Why Will It Pass Budget Check?
- Remember that the CC_AGY_TRK ledger group only issues a warning
when there is insufficient budget available. The transaction will
still pass budget check and entries will be made in the CC_CASH and
the CC_DETAIL ledger groups.
