Handling Budget Control Exceptions

Script            Description

A journal has been entered that did not pass the budget check (BCM). It needs to be determined what the error is, and it needs to be fixed.

Process Assumptions

• A journal exists that has not passed the budget check (BCM).



• The period for the journal is an open period.

Understanding The Budget Checking Process

The PeopleSoft Budget Checking Module (BCM) is the component that enforces budgetary control on financial transactions. The BCM is integrated with each of the following seven PeopleSoft for Education and Government applications:

1. General Ledger,
2. Purchasing,
3. Payables,
4. Inventory,
5. Receivables,
6. Billing, and
7. Grants.

In each of these applications, the BCM verifies that all accounting transactions that originate in the application will pass budgetary control. When a document passes budgetary control, its header and distribution lines are marked with valid statuses, and processing on the document can continue. However, if the BCM marks a document with a budget checking error, further processing of the document is suspended until the cause of the error is corrected. After correcting the budget error, you invoke the BCM again, and the transaction passes budgetary control successfully. The applications suspend processing on a document in some method until its distribution lines, or accounting transactions, have passed budgetary control. For example, in PeopleSoft General Ledger, a journal cannot be posted until it has passed budget checking. Similar control exists in Payables. The Accounts Payables Voucher Posting process cannot process a voucher until it has passed budgetary control. Likewise, in Purchasing, requisitions and purchase orders cannot be postedprocessed until they have been budget checked. For Receivables, the Receivable Update process does not post a customer item or payment to the customer's account until the item or payment has passed budgetary control. In Billing, you cannot print an invoice until the bill passes budget checking. The Facilities and Administration lines from Grants cannot be created until they pass budgetary control. After correcting the budget error, you invoke the BCM again, and the transaction passes budgetary control successfully.

Each time the BCM enforces budgetary control on a transaction, it:

• Verifies that the account requires either expenditure or revenue control as specified on the Account panel. If budgetary control is not required for the transaction account, the BCM marks the transaction as passing budgetary control without actually affecting a change to any budgeted amounts.
• Validates the transaction date against the detail calendar associated with the General Ledger Business Unit default ledger group and Primary Actuals ledger to ensure the date falls into a valid fiscal year and accounting period for that ledger.
• Validates that the transaction type may occur on the current date based on the Budget Transaction Control setting. You establish these date ranges for each transaction type on the Go, Define Business Rules, Administer Budgetary Control, Use, Budget Transaction Control panel.
• Verifies that the transaction account is not designated as a Budgetary Account Only, as specified on the Go, Define Business Rules, Design ChartFields, Account panel.
• Validates whether the Control Location ChartField on the transaction is subject to budgetary control. The system is delivered with the Control Location set to the Fund ChartField. You may change this to be any ChartField that you wish through Budget Control Parameters.
• Translates transaction ChartFields to budget ChartFields as specified on the Budget Key Translations panel.
• Verifies, on a transaction-by-transaction basis, that the transaction's monetary amount does not exceed the available spending authority.

If all the above validations have passed, the BCM updates the budget amounts in the budget ledger immediately so that the expenditures and encumbrances totals for any ChartField combination are kept up-to-date.

When the BCM runs, it first performs the series of edits outlined above on each transaction. If all the edits pass, the BCM then checks the spending authority of the applicable budget types. If there is sufficient spending authority remaining in each applicable budget to cover the transaction, the BCM reduces each applicable budget by the transaction amount and marks the budget checking header status and line status as valid. (Conversely, for revenue, the BCM checks to see if the revenue estimate has been exceeded; if it has not, the BCM updates either the recognized or collected amount with the transaction amount, depending on the type of Receivables transaction the system is processing.)

PeopleSoft General Ledger stores all the controlled budget ledgers in the LEDGER_BUDG table. Note that as you run the budget checking process, the BCM updates the available spending authority in the budget ledgers. This gives you a real-time, up-to-date picture of how much remaining spending authority you have without the need to run the Journal Generator and post your accounting transactions to determine your remaining spending authority.

Automatic Bypass of Budget Checking
In the PeopleSoft General Ledger, the BCM will mark certain types of journals as valid without requiring that a budget exist. These situations occur when:

• The BCM detects that the revaluation, translation, or consolidation process created the journal. (all of these processes are out of scope)
• The BCM detects that the allocations process created the journal, and the journal source that you selected in the Allocations Journal Options panel is ALB (Allocations Process BCM Bypass). If you wish the BCM to check and update budgets for journals from allocations, you must select a Journal Source of ALO. (this is out of scope)
• The BCM detects that the journal came to General Ledger from any of the PeopleSoft applications that are integrated with Budgetary Control (Purchasing, Accounts Payable, Inventory, Receivables, Billing, or Grants) through the Journal Generator. For these journals, the accounting entries have been budget checked in their originating application. To prevent reducing a budget twice, the BCM does not budget check them again in General Ledger.
• When the BCM detects any of the above conditions, it issues an informational message to the PeopleSoft Background Process Message Log that states that the BCM processed the journal, but it posted no changes to the budget.

Note. With the first two situations above, the BCM marks the transaction as valid without checking or updating a controlled budget. In these situations, the transaction will ultimately post to the appropriate General Ledger Actuals ledger, but no corresponding amount will be posted to a controlled budget ledger. This could cause a reconciling issue between the actuals and budgets ledgers, so use these types of journals carefully.

Controlling Pre-encumbrances
Select Go, Define Business Rules, Administer Budgetary Control, Use, Pre-encumbrance Control.

Pre-encumbrance is the intention to buy a certain product your organization is not obligated to buy (that is, a requisition).

The Pre-encumbrance Control panel enables you to include pre-encumbrance control for each business unit.

It determines if funds are available using the equations:

• Remaining Spending Authority = Budget - Expenditures - Encumbrances - Pre-encumbrances.
  

Otherwise, if you do not enter the Business Unit herechoose to use pre-encumbrance control, the equation is:

• Remaining Spending Authority = Budget - Expenditures - Encumbrances

To revoke pre-encumbrance control for a business unit and effective date, select the appropriate effective-dated row, and delete the row or change its status to Inactive. The absence of the pre-encumbrance control signifies that Remaining Spending Authority calculations will exclude pre-encumbrance amounts.

Establishing Budget Checking Tolerances
When you establish your chart of accounts, you specify the budget checking tolerances that the system will apply with regard to pre-encumbrances and encumbrances on each Fund ChartField. If these tolerance limits are exceeded, the transaction will fail budget checking.

Process Flow Steps

1. A journal needs to be corrected. One of the team members will correct the journal through the Journal panels.



2. Access the Journal Entry Panel as follows:




GO	Process Financial Information
	Process Journals
USE	Budget Control Exceptions


The following panel will open:



Note: If you navigate to the Budget Control Exceptions panel directly from the Journal Entry panel, the Journal ID is retained and you will not need to go through the following journal selection process.


3. Select a Journal
   1. Input the GL JOURNAL ID if known.
   
   
   
   
   
   1. Click the button
   
   
   2. Or search for a Journal
   
   
   
   1. Establish the criteria you wish to use to search for a journal
   1. Budget Checking Header Status:
   1. (NONE)
   2. BUDGET CHECKING IN PROCESS
   3. ERROR IN BUDGET CHECKING
   4. NOT BUDGET CHECKED
   5. SELECTED BY BCM TO PROCESS
   6. VALID BUDGET CHECK
   2. After setting up the criteria you wish to use to search for the journal, Click the Button
   
   
   
   3. A listing of journals should appear in the lower box that meet your criteria.
   
   
   
   
   Note that this joural shows a Budget Check Status Error in the list box
   
   
   4. Select the journal you wish to review and Highlight it
   
   
   
   5. Click the button again
   
   
   
4. The Budget Control Exception Panel will appear.
   
   
   
   This panel displays transactions that have a budget checking status not equal to V or Valid. The panel displays the transaction ChartFields, the budget checking status code, and the budget check totals for the transaction.
   
   
   1. VIEW THE ORIGINAL JOURNAL - Select the Journal push button in the Go To group box to view the original document.
   
   
   
   
   2. VIEW THE ASSOCIATED CONTROLLED BUDGET - Select the Analyze Budgets push button to transfer to the Analyze Controlled Budgets panel to view the associated controlled budget.
   
   
   
   
   3. RUN BUDGET CHECKING - Select the BUDGET CHECK push button to run budget checking.
   
   
   
   
   
   
5. Once all the budget issues are resolved (by either fixing the problem, or by the Budget Override), you can re-run the Budget Check on this panel, and then continue processing the journal following the procedures for Posting in GL_01_Journal Processes



6. If you still receive further budget check errors, you can repeat the processes above.

Investigating Budget Control Transactions

Budget Checking Module (BCM) is the process that checks and updates the controlled budget ledgers with accounting transactions from General Ledger, Purchasing, Payables, Inventory, Receivables, Billing, and Grants.

BUDGET CHECKING GROUPS
To understand how to diagnose budget checking errors, you must understand how the BCM logically groups transactions from different PeopleSoft applications.

The BCM uses the "Transaction Source" and the "Header Record" defined on the Budget Checking Definition panel to select all the distribution lines in a group to process based on this table:

Transaction Source	Budget Checking Group
General Ledger	Journal
Payables	Voucher
Billing	Group
Receivables	Group
Inventory	Inventory accounting line
Purchasing	Requisitions and Purchase Orders
Grants	Facilities and Administration Lines

The BCM processes all the transactions or distribution lines in each of the above groups as a unit, or, in the case of PeopleSoft Inventory, one accounting line at a time. If all the lines in a transaction pass budget checking, the BCM updates the corresponding budget (or budgets) and marks the transaction as "V" (valid). If one or more of the lines in a journal fail budget checking, no budget ledgers are updated by the BCM and it marks those lines that caused the transaction to fail budget checking with an error. If the BCM detects a setup or data error from which it cannot recover, it does not update either the transaction or any budget ledgers. Instead, the BCM records diagnostics in the PeopleSoft Background Process Log indicating what caused the error.

Budget Checking Status Codes

Scenario	Budget Checking Header Status	Budget Checking Line Status
Budget Check not yet run	N - not budget checked	N - not budget checked
All lines pass Budget Check	V - valid	V - valid
One or more lines fail	E - error	various; see below
Setup or data error	N - not budget checked	various; see below
BCM has selected a transaction group for processing	S - selected	various; see below
BCM is in process on a single Transaction	I - in process	various; see below

After you run the BCM, you should review the Budget Checking Header Status of your journal on any of the Journal Entry - Header panels. If your journal did not pass Budget Checking, you need to review the Budget Checking Line Status of each journal line on any of the Journal Entry - Lines panels.

The following examples explain various Budget Checking Header status values and their meaning.

Example 1: Budget Checking Header Status is V-Valid Budget Check
The Header Status was "V-Valid Budget Check"-all the lines passed budget checking. Notice that the Budget Checking Line Status for each distribution line is also "V-Valid Budget Check" to signify that each line has successfully passed budget checking. Recall that when a document "passes" budget checking, it has met all of the budgetary control edits and the system has reduced or increased the available spending authority in the appropriate budget ledgers.

Example 2: Budget Checking Header Status is E-Budget Check Errors
If the Budget Checking Header Status is "E-Budget Check Errors", one or more lines failed budget checking. You should review each line and use resolution information in the error table below to correct the cause of each line in error. After you have corrected the cause of each budget checking line error, run the BCM to budget check the document again. Continue in this process until you have corrected all the errors in your document and the Budget Checking Header Status is "V-Valid Budget Check."

Example 3: Budget Checking Header Status is N-Not Budget Checked
If the Budget Checking Header Status is "N-Not Budget Checked", three situations can have caused this:

• The Budget Checking has not been run yet for this document. Or, the monetary amount has been changed, and the document requires budget checking an additional time for the increased or decreased amount.
• The BCM was run through the process scheduler. However, the control parameters caused the system to not select this document for budget check processing. Create a new budget checking request for this document and run the process again.
• The BCM detected a setup or data error from which it could not recover. Review the PeopleSoft Background Process Message Log (Process Journals, Inquire, Message Log) to determine the cause of the error. Correct the error using the information displayed in the Message Log (click the flashlight icon for more detailed information) and run the Budget Checking process again.

Note. If the Budget Checking Module cannot translate one or more ChartFields, it will flag the distribution line with the error code Translation Error - See Message Log. Review the Inquire, Background Process for the offending ChartField value and the tree name that you need to update.

This table describes the most common errors encountered by the BCM; these errors will cause a document to fail. If you encounter any of these errors, please review the cause and resolution before correcting the error.

Budget Checking Line Status	Description	Cause and Resolution
A	Budgetary Account Only	The transaction line contains an account that was designed as "Budgetary Account Only" on the Account Definition panel. Either turn off the "Budgetary Account Only" indicator on this panel or use a different Account ChartField on the transaction.
A2	Account Number Not Found	The transaction line is missing a value for the Account ChartField, or the account type for the ChartField is not valid. Enter a valid Account ChartField on the transaction line.
B	Account Requires Budget Period	The account on the transaction line is designated as requiring budgetary control and therefore requires that a budget period be entered on the transaction line. Either enter a budget period on the transaction line or use a different value for the Account ChartField.
B2	Budget Translation CF Required	Whatever ChartField you specified as the Key Location for Budget Translation on the Budgetary Control Parameters panel must be present in the transaction line. Enter a value for this ChartField and run budget checking again.
B3	ChartField Translation Error	The BCM could not translate one or more ChartFields on the distribution line to a valid budget distribution. The ChartField and tree name that caused the error will be in the Message Log for this Process Instance.
B4	Budget Period Translation Error	The BCM could not translate the actuals Budget Period using the Budget Period control information. The Tree Name, Tree Level, and Tree Node that caused the error will be in the Message Log for this Process Instance.
B5	Require Fund Code ChartField	Fund is a required field on the distribution line. Enter a value for Fund and run budget checking again.
C	Invalid Acct Budg Control Type	The BCM does not permit the account's Budget Control Type on this transaction. Choose a different account or change the account's budget control type designation.
C2	Rev Cntrl Acct Not Permitted	The BCM does not permit Accounts designated for Revenue Control on Purchase Orders, Requisitions, or Inventory shipments. Either change the account on the transaction line, or change the account's budget control type designation.
D	Appropriation Data Not Found	The fund on the transaction line is designated as requiring appropriation control; however, the system could not find an appropriation in the appropriation table. Either enter and post a new appropriation journal (Prepare Controlled Budgets panels) or change the ChartField values on the transaction line.
D2	Appropriation Ledger Not Found	See resolution for error "D", above.
E	Allotment Ledger Not Found	The ChartField values on the transaction translate to an appropriation that requires allotment control; however, the system could not find an allotment. Either enter and post a new appropriation and/or allotment journal (Prepare Controlled Budgets panels) or change the ChartField values on the transaction line.
E2	Allotment Data Not Found	See resolution for 'E' above.
F	Org Budget Data Not Found	The fund on the transaction line is designated as requiring organization (expense) budget control; however, the system could not find an organization (expense) budget in the organization budget table. Either enter and post a new organization journal (Prepare Controlled Budgets panels) or change the ChartField values on the transaction line.
F2	Org Budget Ledger Not Found	See resolution for error "F", above.
F3	Org Stat Budg Not Found	Statistics amount is entered on the distribution line; however, the system could not find an organization statistical budget in the organization budget table. Either enter and post a new organization statistics journal (Prepare Controlled Budgets panels) or remove/change the statistics amount on the transaction line.
G	Revenue Est Data Not Found	The budget period and fund combination on the transaction line designates that the transaction is under revenue estimate control; however, the system could not find a revenue estimate budget in the revenue estimate table. Either enter a new revenue estimate journal (Prepare Controlled Budgets panels) or change the ChartField values on the transaction line.
G2	Revenue Est Ledger Not Found	See resolution for error "G", above.
H	Project/Grant Data Not Found	The Project/Grant ChartField value on the transaction line designates that this project requires project/grant budget control; however, they system could not find a matching project/grant budget in the project/grant budget table. Either enter a new project/grant journal (Prepare Controlled Budgets panels) or change the Project/Grant ChartField values on the transaction line.
H2	Project/Grant Ledger Not Found	See resolution for error "H", above.
I	Insufficient Appropriation	The remaining spending authority for the appropriation budget was not sufficient to cover this transaction. Either change the ChartField values to point to a different budget, enter a new budget journal to increase spending authority (Prepare Controlled Budgets panels), or use the Mark Journals for Budg Override panel to force this journal to pass budget checking.
I2	Appropriation is Frozen	The ChartFields on the transaction line translate to an appropriation budget that is frozen. Either change the ChartField values to point to a different budget, or enter a new budget journal to unfreeze this budget (Prepare Controlled Budgets panels).
J	Insufficient Allotment	The remaining spending authority for the allotment budget was not sufficient to cover this transaction. Either change the ChartField values to point to a different budget, enter a new budget journal to increase spending authority (Prepare Controlled Budgets panels), or use the Mark Journals for Budg Override panel to force this journal to pass budget checking.
K	Insufficient Organization Bud	The remaining spending authority for the organization (expense) budget was not sufficient to cover this transaction. Either change the ChartField values to point to a different budget, enter a new budget journal to increase spending authority (Prepare Controlled Budgets panels), or use the Mark Journals for Budg Override panel to force this journal to pass budget checking.
K2	Organization Budget is Frozen	The ChartFields on the transaction line translate to an organization (expense) budget that is frozen. Either change the ChartField values to point to a different budget, or enter a new budget journal to unfreeze this budget (Prepare Controlled Budgets panels).
K3	Insufficient Revenue Estimate	The remaining amount for the revenue estimate budget was not sufficient to cover this transaction (the transaction amount exceeded the existing revenue estimate). Either change the ChartField values to point to a different budget, enter a new budget journal to increase spending authority (Prepare Controlled Budgets panels), or use the Mark Journals for Budg Override panel to force this journal to pass budget checking.
K4	Revenue Estimate is Frozen	The ChartFields on the transaction line translate to a revenue estimate budget that is frozen. Either change the ChartField values to point to a different budget, or enter a new budget journal to unfreeze this budget (Prepare Controlled Budgets panels).
K5	Revenue Adjustment Option Reqd	The Budget Adjust Type on your GL Journal Entry was "Revenue Adjustment" but you did not select an "Amount Type" of Recognized or Collected on each Journal Line. Open the journal and select a valid Amount type for each Journal Line.
K6	Invalid Budget Adjust Type	There is a mismatch between the Budget Adjust Type on your GL Journal and the Amount Type on each Journal Line. For Budget Adjust Type of Pre-encumbrance or Encumbrance, the amount type you useyou use on each journal line must also be either Pre-encumbrance or Encumbrance. For Budget Adjust Type of Revenue, the amount type on each Journal Line must be either Recognized or Collected. Open the Journal and fix the offending Amount Types.
K7	Spending Authority Over Budget	The remaining spending authority is higher then the original budget and the Allow incr Spending Authority option defined in General Ledger Business Unit isUnit is not turned on. Either turn this setting on or delete the offending journal.
L	Insufficient Proj/Grant Bud	The remaining spending authority for the Project/Grant budget is not sufficient to cover this transaction. Either change the ChartField values to point to a different budget, enter a new budget journal to increase spending authority (Prepare Controlled Budgets panels), or use the Mark Journals for Budg Override panel to force this journal to pass budget checking.
L2	Project/Grant Budget is Frozen	The ChartFields on the transaction line translate to a Project/Grant budget that is frozen. Either change the ChartField values to point to a different budget, or enter a new budget journal to unfreeze this budget (Prepare Controlled Budgets panels).
M	Ref Requisition Not Found	You attempted to budget check a purchase order that referenced a requisition that was canceled or sourced. Review the requisition to make sure it is open and not sourced.
N	Not Budget Checked	The transaction line either has never been previously budget checked, is in a group of transactions where one or more other lines failed but this line would have passed budget checking; or the budget check process ran and detected a severe error and did not update the status on any line.
O	Ref Purchase Order Not Found	You attempted to budget check a voucher that referenced a purchase order that might have been canceled or closed. Review the purchase order to make sure it is open.
P	PO Edit to be done for BCM Comp	You must run PO Edit on this Purchase Order before you can budget check it.
Q	Requisition Over Liquidated	This Purchase Order distribution line is over the Requisition distribution line pre-encumbrance amount. The Purchase Order amount exceeded the pre-encumbrance amount plus the tolerance. Re-enter an amount within the appropriate limits.
R	Purchase Order Over Liquidated	This Voucher distribution line is over the Purchase Order distribution line encumbrance amount. The Voucher amount exceeded the encumbrance amount plus the tolerance. Re-enter an amount within the appropriate limits.
S	Project/Grant is Required	The ChartFields on this transaction point to an organization (expense) budget that requires a value to be entered for the Project/Grant ChartField. Either enter a value for the Project/Grant ChartField or change the other ChartField values to point to a different organization (expense) budget.
T	Project/Grant Data Not Found	No data was found in the PROJECT table for this Project/Grant. Correct the Project/Grant on your distribution line or establish this Project/Grant on the Design ChartFields panel.
U	Insufficient Funding Source	The Project/Grant ChartField value on the transaction line is designated as requiring funding source control; however, the sum of the funding sources is not enough to cover the transaction amount. Either increase the funding source amount for the project or change the ChartField values on the transaction line.
V	Valid Budget Check
W	Transaction not allowed for FY	The current system date does not fall in between the start and end dates for this transaction type on the Budget Transaction Control panel. Change the start and/or end dates for this transaction type.
X	Outside Appropriation Budget Date	One of the following is true: a) transaction date on the distribution line is earlier than the appropriation budgets' begin date b) begin date of the budget period of the distribution line is later than the appropriation budgets' end date c) end date of the budget period of the distribution line is earlier than the appropriation budgets' begin date. Correct either the transaction date or the budget period of the distribution line or change the begin/end date of the budget.
X2	Outside Allotment Budget Date	One of the following is true: a) transaction date on the distribution line is earlier than the allotment budgets' begin date b) begin date of the budget period of the distribution line is later than the allotment budgets' end date c) end date of the budget period of the distribution line is earlier than the allotment budgets' begin date. Correct either the transaction date or the budget period of the distribution line or change the begin/end date of the budget.
X3	Outside Organization Budget Date	One of the following is true: a) transaction date on the distribution line is earlier than the organization budgets' begin date b) begin date of the budget period of the distribution line is later than the organization budgets' end date c) end date of the budget period of the distribution line is earlier than the organization budgets' begin date. Correct either the transaction date or the budget period of the distribution line or change the begin/end date of the budget.
X4	Outside Revenue Budget Date	One of the following is true: a) transaction date on the distribution line is earlier than the revenue estimate budgets' begin date b) begin date of the budget period of the distribution line is later than the revenue estimate budgets' end date c) end date of the budget period of the distribution line is earlier than the revenue estimate budgets' begin date. Correct either the transaction date or the budget period of the distribution line or change the begin/end date of the budget.
X5	Outside Proj/Grant Budget Date	One of the following is true: a) transaction date on the distribution line is earlier than the proj/grant budgets' begin date b) begin date of the budget period of the distribution line is later than the proj/grant budgets' end date c) end date of the budget period of the distribution line is earlier than the proj/grant budgets' begin date. Correct either the transaction date or the budget period of the distribution line or change the begin/end date of the budget.
Y	Invalid Project/Grant Date	The transaction date (usually the document's accounting date) does not fall within the Project/Grant budget begin and end dates.
Z	Invalid Statistics Code	The transaction contains a statistics code that is invalid for the associated Organization Budget. Either correct the statistics code on the transaction or establish an Organization Statistical Budget for this statistics code.
ZA	Ref Item Dist Not Found	The Accounts Receivable transaction referenced an item that the system could not find in the ITEM_DST table.

STATISTICAL CHECKING
PeopleSoft Financials 7.5 for Education and Government does not provide budgetary control for Statistical Accounts. More specifically, when the Budget Checking Module encounters a transaction with an account designated as a "Statistical Account", it will mark the transaction as valid without checking or updating a budget.

AUDIT RECORDS OF BCM TRANSACTIONS
Each time the BCM passes a transaction and updates the budget, it records an audit record in the Budget Checking Transaction Detail Table, PS_BCM_TRANS_DTL. This table stores:

• The budget ledger row which the BCM updated.
• The date and time that the BCM updated the ledger row along with the BCM process instance.
• The transaction reference information.
• The budget override information-whether this document was marked for budget override and which Operator ID approved the override.

You may run the Budget Transaction Detail report at any time for a list of the transactions that reduced your controlled budgets. Select Go, Process Financial Information, Analyze Controlled Budgets, Report, Budget Transaction Detail.