How to Enable Budgetary Control in Oracle Fusion

Access the Financials setup area

1. Open your web browser and log in to the Oracle Fusion application.
2. From the main menu, locate and select the Setup: Financials section.
3. In the Functional Areas panel, scroll down to find Budgetary Control and Encumbrance Accounting.
4. Click Budgetary Control and Encumbrance Accounting to expand its options.

Open the Manage Budgetary Control task

Click Manage Budgetary Control under the Task list to open the management page for budgetary control and encumbrance accounting.

On this page, review the Enterprise Options and Ledger and Business Unit Options sections:

• The Enterprise Options section lists features such as budgeting to summary accounts in General Ledger, synchronizing hierarchy maintenance, additional budgetary control liquidation validation, and securing control budget definitions.
• The Ledger and Business Unit Options section lists available ledgers and business units, with columns for Name, Ledger, Budgetary Control Enabled, Encumbrance Accounting Enabled, and Business Unit.

Locate and select your ledger

Use the search bar to filter for the ledger you want to configure, for example, typing "US Pri" to find "US Primary Ledger." Review the current status: both Budgetary Control Enabled and Encumbrance Accounting Enabled should show "No" if they have not yet been enabled.

Click the row for US Primary Ledger, or your target ledger, to select it.

This opens the Edit Budgetary Control and Encumbrance Accounting page for your selected ledger. Confirm you are on the correct screen by checking the header and verifying that options for budgetary control and encumbrance accounting are present.

Enable budgetary control for the ledger

Check the box labeled Enable budgetary control for the ledger and all journal sources and categories.

Set the control budget filter

Choose the appropriate control budget filter:

• Ledger only: Applies budgetary control at the ledger level.
• Project: Applies budgetary control at the project level.
• Ledger or project: Allows control at either level.

Enable encumbrance accounting (optional)

To enable encumbrance accounting, check the box labeled Enable encumbrance accounting. If enabled, specify the Reserve for Encumbrance Account by clicking the search icon and selecting an account. If no valid combination is available, a "No valid combination" message appears.

Configure budgetary control validation (optional)

Check Transaction budget date falls outside of date range across all control budgets if you want to validate transaction dates against budget periods. If left unchecked, no date validation is performed.

Map the chart of accounts to budget segments

Expand the Additional Ledger Options section if it is not already open, then review the Mapping Between Chart of Accounts and Budget Accounts table. For each row—Company, LoB, Account, Cost Center, Product, Sub Class—set the Budget Segment value. The default is Always use segment value from budget data; alternatively, select a fixed value from the dropdown in the Segment Value column.

Configure budgetary control journal exceptions

Click the Budgetary Control Journal Exceptions tab. In the Journal Source column, select the sources you want to exclude from budgetary control, such as Receipt Accounting, Cost Accounting, Revaluation, or Open Balances. For each source, select the appropriate Journal Categories to exclude, or leave the setting as "All" to exclude all categories for that source. This lets you define exceptions where budgetary control is not enforced for specific journal sources or categories.

Enable revenue and cash controls

Click the Revenue and Cash Controls tab. Review the Control Budget Name, for example US Primary Ledger_Cash, and its Status, such as "Not ready for use - defining." Check the box for Payables payment consumes the cash budget if you want payments to reduce the available cash budget. Under Accounts in Journals Subject to Cash Controls, add accounts as needed. This section lets you manage cash controls alongside standard budgetary controls.

Enable budgetary control for a business unit

Locate the Business Unit section, for example ASICS_BU. Under Budgetary Control, check the Enable box to activate budgetary control for this business unit. Set the Default Date Rule to Current transaction budget date from the dropdown. The Encumbrance Accounting option is available here as well, though it is not enabled in this example.

Configure budgetary control for Procure-to-Pay business functions

In the Procure-to-Pay Business Functions section, review the list of business functions: Requisitioning, Procurement, Expense Management, Receiving, and Payables Invoicing. For each function, set the following:

• Enabled: Select Yes to enable budgetary control for the function.
• Reservation Point: Choose when funds should be reserved, either Approval or Submission.
• Encumbrance Accounting Enabled: Set as needed for your organization.

Example settings include Requisitioning and Procurement with Enabled = Yes, Reservation Point = Approval, and Encumbrance Accounting Enabled = No, alongside Expense Management, Receiving, and Payables Invoicing each set to Enabled = Yes.

Set reservation points for fund reservation

For each business function, select the Reservation Point:

• Approval: Funds are reserved after the transaction is approved.
• Submission: Funds are reserved immediately after the transaction is submitted.

To change the reservation point, click the dropdown in the Reservation Point column and select the desired option. For example, for Requisitioning, you can choose between Approval and Submission.

If you select Submission, funds are reserved immediately after the requisition is submitted. If you select Approval, funds are reserved only after the requisition is approved. This setting controls when budgetary funds are committed during the process.

Enable budgetary control for project accounting (optional)

In the Project Accounting Business Function section, check the box for Enable budgetary control for all transaction sources and documents if you want comprehensive control across all relevant transactions.

Add budgetary control journal exceptions for business functions

In the Budgetary Control Journal Exceptions section, click the plus (+) icon to add a new exception. Specify the Transaction Source and associated Documents to exclude from budgetary control as needed. This lets you define exceptions for specific transaction sources.

Review and save your configuration

Before saving, confirm that the following settings reflect your business needs:

• Control Budget Filter, such as Ledger only
• Budgetary Control Validation options
• Segment mapping and values
• Journal exceptions
• Revenue and cash controls

Click Save or Save and Close at the top right of the screen to apply your changes.