COMMITMENT CONTROL OVERVIEW
ROLES INITIAL APPROXIMATE RESOURCES:
; Office Managers
; Business Managers
; Program Assistants
Learn how to inquire on your Remaining Spending Authority (RSA). This
was formally known as the available budget balance to spend.
USF has elected to utilize the Commitment Control functionality provided
within the Oracle financials modules.
Commitment Control provides the ability to control expenditures against
predefined, authorized budgets in a real time environment. In particular,
Commitment Control enables you to:
; Create and maintain control budgets.
; Check actual transactions (such as actual expenditures and revenues)
against control budgets.
; Check future financial obligations pre-encumbrances (requisition) and
encumbrances (purchase order or salary encumbrance from GEMS)
against control budget
Commitment Control ledgers store budget, pre-encumbrance,
encumbrance and expended amounts. Commitment Control checks
expended, pre-encumbrances and encumbrances against control budgets.
An example of budget checking from commitment through actuals would
be the procure to pay cycle:
1. When a requisition is created, Commitment Control checks the amount
against the appropriate budgets and posts it as a pre-encumbrance in
the Commitment Control ledger.
2. When a requisition becomes a purchase order, Commitment Control
reverses the pre-encumbrance and posts the purchase order amount
as an encumbrance.
3. When the purchased goods or services are delivered and the
purchase order becomes a voucher, Commitment Control reverses the
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encumbrance and posts the expenditure to the Commitment Control
Note: Budgets for Capital Projects and Grants will be developed independently from the Organizational and Division budgets. For specifics on the budgeting process and commitment control rules defined for these modules refer to the Projects and Grants Departments.
There are two types of Ledger groups: Div budget, which is the control ledger and the Org budget, which is the track with budget ledger. Both will be maintained in balance.
To begin the budget process Units will be preparing the Organizational Budget much like we do now. This will be an annual budget by department, fund and budget account (an example of budget accounts are salaries (80001), Other Capital Outlay (80006) and expense (80004)). Budget transfers will occur in this ledger by the user assigned to be the VP/college designated budget processors.
As transactions are recorded against the Organizational budgets the system will track the transactions against the budget and calculate the remaining spending authority (RSA). If a department overspends their budget, the system will generate a warning message that will be delivered to the Central Budget Offices, but will not stop the transaction. Colleges, departments and the Central Budget Offices will be monitoring the RSA to be sure the departments are not overspending their budgets.
The Commitment Control was setup to aid in budget control but not to stop the day-to-day operations of the University. There will be a limited number of users who have the authority to override budget checking and allow a transaction to exceed the budget. The Central Budget Offices will control the security on the Commitment Control functions (overrides, transfers).
This document will show you how to inquire into your remaining spending authority (RSA) by using the Budget Overview page.
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INQUIRE ON REMAINING SPENDING AUTHORITY (RSA)
INQUIRE BY USING THE BUDGET OVERVIEW PAGE
Step 1: Navigate to the Budget Overview Page
Step 2: Enter the Inquiry Name
Step 3: Enter the Inquiry Criteria
Step 4: View the RSA Details
Step 5: Drill down on the Transaction Details
STEP 1 NAVIGATE TO THE BUDGET OVERVIEW PAGE
1.1 Navigate to the Budget Overview page by selecting Commitment
Control, Review Budget Activities, Budgets Overview from the
menu on the left of the page.
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STEP 2 ENTER THE INQUIRY NAME
2.1 For Budget Overview inquiry within Oracle the individual users
must define an inquiry definition. This inquiry definition is tied
specifically to the individual User ID it is created by and cannot
be accessed by other users.
2.2 To create a new inquiry definition, click on the Add a New Value
tab. (If this is the first time you are using this inquiry you must
create a new definition.)
2.3 Enter an inquiry name (up to 10 characters with no spaces)
2.4 Click on
NOTE: Once created this inquiry definition can be reused with the criteria modified for each inquiry to be made by the user. The user would click on the Find an Existing Value tab and select the inquiry name.
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STEP 3 ENTER THE INQUIRY CRITERIA
3.1 Enter the Business Unit (USF01)
3.2 Select Ledger Group as the Ledger Group/Set
3.3 Enter the Ledger Group (ie CC_ORG for Organizational budget or
any of the other budget groups you wish to inquire on) 3.4 Do not check View Stat Code Budgets
3.5 Select the Type of Calendar (Detail Budget Period)
3.6 Click on the Select checkbox next to the Ledger Group to be
queried. Check Include Adjust Periods and Include Closing
3.7 If this is a new definition click on
3.8 Enter any Chartfield criteria you wish to narrow your search 3.9 Check all three Budget Status checkboxes (Open, Closed, Hold)
3.10 Click on to display the results of the search criteria
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STEP 4 VIEW THE RSA DETAILS
4.1 This inquiry will display the summary total amounts of Budget,
Expense, Encumbrance and Pre-Encumbrance for the criteria
selected above in the top portion of the page. The bottom portion
of the page will display various chartfield distributions that
comprise the summary amounts
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4.2 If all lines did not display, remember that you may change the Max
Rows to display as many rows as you need. The results will be
displayed in budget account number order.
4.3 Scroll to the right to view the Available Budget amounts and
4.4 Remember that you may download these results by clicking the
symbol on the dark blue header line.
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STEP 5 DRILL DOWN ON THE TRANSACTION DETAILS LINES
5.1 To drill down to the transaction details click on the hyperlink associated
with the specific line and amount type. This will display either a journal,
voucher, PO or requisition information page.
Click on the
hyperlinks to view
Click on the Click on the Click on the Pre-
Expense amount Encumbrance Encumbrance
hyperlinks to view Amount Amount
voucher summary hyperlinks to view hyperlinks to view
information PO summary requisition
information summary info
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5.2 The budget journal drill down view (detail of Budget amounts) will display
NOTE: By clicking on the Drill Down symbol you can open a new
window that will display the journal inquiry pages. (see Journal Entry
section of this training document) Example appears below.
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5.3 Click on to return to the Budget Overview page. Then click the
symbol to drill to the activity log. See illustration below.
5.4 From the Activity Log click on the symbol to drill to the Budget
Journal Line drill down.
5.5 From the Activity Log click on the symbol to drill to the budget
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