Wednesday, May 21, 2008

Purchasing and Inventory Accounts commonly defined during Setup

1. Purchasing:
Financial Options
Accounting Information
· Liability Account
· Prepayment Account
· Discount Taken Account
· Rate Variance Gain Account
· Rate Variance Loss Account

Purchasing Options
Accruals
· Expense AP Accrual Account

Receiving Options
Receiving Account (need one account per inventory organization; they can be the same).

2. Inventory:
Define Organization Parameters - All accounts in this section are required for each inventory organization; they can be the same between orgs.
· Inter-Org Transfer Accounts (required for setup)
· Inter-Org Receivable Account
· Inter-Org Payable Account
· Inter-Org Purchase Price Variance Account
· Intransit Inventory Account

Valuation Accounts
· Material Account
· Outside Processing Account (this won’t be used, so a suspense account is fine)
· Material Overhead Account (this won’t be used, so a suspense account is fine)
· Overhead Account (this won’t be used, so a suspense account is fine)
· Resource Account (this won’t be used, so a suspense account is fine)

Other Default Accounts
· Purchase Price Variance Account
· Invoice Price Variance Account
· Inventory Accrual Account
· Encumbrance Account (this won’t be used, so a suspense account is fine)
· Expense Account
· Sales Account
· Cost of Goods Sold Account (this is a default; each item can have a COGS account as well)
· Average Cost Variance Account (this probably won’t be used, so a suspense account is fine)

Define Subinventory - All accounts in this section are required for each subinventory in each org; they can be the same as the org level, and can be the same between subinventories.

Subinventory Accounts
· Material Account
· Outside Processing Account (this won’t be used, so a suspense account is fine)
· Material Overhead Account (this won’t be used, so a suspense account is fine)
· Overhead Account (this won’t be used, so a suspense account is fine)
· Resource Account (this won’t be used, so a suspense account is fine)
· Expense Account
· Encumbrance Account (this won’t be used, so a suspense account is fine)

Define Freight Carriers - Need an account for each carrier defined; they can all be identical, overlapping (Ground account vs. Express account) or unique; freight carriers are optional, and may not be set up.

Define Inter-Org Shipping Information
· Inter-Org Transfer Credit Account
· Inter-Org Receivable Account
· Inter-Org Payable Account
· Inter-Org Purchase Price Variance Account
· Intransit Inventory Account

Define Overhead
· Absorption Account

Define Item - need an account code for each item defined; they can be identical, overlapping, or unique; these accounts are optional since they will default from the subinventory or organization
· Cost of Goods Sold Account
· Encumbrance Account (this won’t be used, so a suspense account is fine)
· Expense Account
· Sales Account

Troubleshooting Guide - Create Release against Blanket PO

You have 3 basic choices for the requisitions created by this process:
1. Release against a blanket PO
2. Autocreate into POs
3. Release as standard PO (but you must have a quotation to use instead of a blanket -- pricing has to come from one or the other).

The general process for release against a blanket (or quotation) is:

1. Create a blanket PO with lines for all parts to be sourced. Enter a price for each line. (Or, enter a quotation).

2. Define a sourcing rule (Purchasing > Supply Base > Sourcing Rules)
Enter a name for the sourcing rule.
Org = your org name
Type = buy from
Supplier = name of supplier on blanket PO or quotation.
Supplier site = name of supplier site on blanket PO or quotation.
Allocation = 100% (must be 100%)

3. Assign the sourcing rule to an Assignment Set (Purchasing > Supply Base > Assign Sourcing Rules)
Enter an Assignment Set Name (for example "MRP Planned Items"
Assigned To (I usually pick Item/Organization)
Org = your inventory org code
Item/Category = part being sourced
Type = sourcing rule
Sourcing Rule = name you created in Step 2

4. You must then enter this Assignment Set Name at the responsibility level for the system profile option MRP: Default Sourcing Assignment Set.

5. Create Approved Supplier List
Upper half of screen:
Type = Item
Enter Item Number
Lower half of screen:
Business = direct
Name = name of blanket PO vendor from step #1
Site = site of vendor from step #1 (must be same site as defined in step #2)
Status - changed to "approved".
Global = no
Owning org = your inventory org name

Click on Attributes button
Enter Purchasing UOM (required)
Select release method:
Automatic release (no review)
Automatic release with review
Release using Autocreate (for greatest control)
Sequence = 1
Type = either Blanket or Quotation
Blanket Number & Line Number
Blanket Status (blanket PO must have been approved).

Support also states that you can also use a quotation to turn a requisition into a standard PO in a similar process, but I have never tested this. Try entering a quotation in the PO module and reference this instead of Blanket in the Approved Supplier List form.

You can also take the approved requisitions and just turn them into POs using the autocreate function. But be sure that you have "Approve Purchase Requisitions" as one of the functions on the Approval Assignments form or the reqs will be "incomplete" instead of "approved" and you cannot then autocreate them onto POs. (That error cost me two whole days to find.......)

Oracle Lease Management Overview

Lease Life Cycle :

a) Credit Checking of the Lessee (Customer)
b) Author a Contract between Lessor and Lessee
c) Bill the Lessee during a Contract Term
d) Receive Payments from Lessee during the term of the contract
e) Lessee interacts with Lessor during the term of contract.
i. May inquire regarding his payments or next invoice
ii. May request for some additional Product information
iii. May dispute an invoice.
iv. On the basis of Lessee’s interaction, Lessor’s agent may initiate certain tasks internally or send some notifications

f) At the end of Contract term, as per T&C of the contract
i. Lessee may return the Asset to Lessor
ii. Lessee may purchase the Asset
iii. Lessee may renew a contract
g) Lessor sends quote to the lessor if there is a purchase option as per T&C
i. May be an early termination Quote
ii. End of Term Quote
h) Asset is returned to the Lessor
i. Asset may become part of inventory which can be re-leased later
ii. Asset may be remarketed

OLM integrates the power of Oracle’s ERP, CRM and Contract Applications for complete leasing solution.

Key Business Flows:
OLM has designed the following Key Business Flows to address all the scenarios of a typical Lease Life Cycle

1. Credit Application to Booking
2. Invoice to Receipt
3. Asset return to Disposal
4. Quote to termination
5. Inquiry to Resolution
6. Period Open/Close - This is purely Accounting setup

Oracle APPS responsibilities for OLM:

All the Key Business Flows except Inquiry to Resolution are performed by
Logging into OLM HTML Version. Lease Super User module is used

OLM has number of concurrent programs for processing data within OLM and transfer of data to other modules like AP, AR, GL etc. All these concurrent Programs are accessed by using Lease Administrator responsibility which is in Oracle Forms Version.

Lease Center Agent Responsibility in Oracle Forms Version is used for the inquiry to Resolution Business Flow.

1. Credit Application to Booking:

Modules involved: AP, FA, GL, Inventory, Contracts Core and Installed Base
A Third party Lease Price modeling software, SUPER TRUMP performs stream generation and Lease Pricing

· Credit Approval
· Authoring a Contract
· Vendor Payment
· Asset Tracking

For some clients, Credit Application of the Lessee( Customer) is processed in a separate system.
Approved contract is entered in OLM. Contract information is available different subsystems. Most of the times, Contract has to be imported by drawing information from those subsystems.
In a few cases, we may be entering a Contract from scratch

2. Invoice to Receipt:
Modules involved: AR, Collections, GL, Contracts for Service

Billing functionality identifies items to be passed onto lessee.
Billable items are as follows

· Cost of the equipment – multiple assets
· Fees incurred like Customer Service Fee, Documentation Fee
· Expenses like Insurance premium, Installation charges
· Taxes like Sales Tax, VAT

Billing amounts may be generated automatically or manually
Lessee may have assets at multiple locations under same lease contract
Various Billing requirements like Usage Based Billing
Payments from Lessee – Receipts to Lessor
Transfer of funds – Lessee or Lessor may initiate
Mode of Payments: Direct Debits, Checks, Wire Transfers or Credit Cards
Notifications to Customers
Collections – missing Payments, delinquent, litigations etc


3. Quote to Termination:

Modules involved: AR, FA, CRM Foundation, Workflow and GL

Alternatives when a Lease Contract expires

· Manage a repurchase
· Restructure a Contract
· Terminate a Contract

OLM processes restructured contracts through Contract authoring and Booking
Request for a renewal or termination quote
Complete termination of Contract
Update Asset records

When termination quote for sale is accepted, assets are retired in Fixed Assets

4. Asset return to Disposal:
Modules involved: iStore, Marketing Online, Advanced Pricing, CRM Foundation

· Asset returns
· Remarketing

Asset evaluation process
Shipping instructions for returned Assets.
Returns may be accounted as scrap, or inventory to be remarketed
Remarketing manages disposition of Assets when a Lease expires.
Sale of Asset to a 3rd Party or internal remarketing efforts


5. Inquiry to Resolution:
Modules involved: CRM Foundation, Telesales, E Business Center

Customer Service representative tracks a customer inquiry through its resolution.
Communicate to appropriate authorities regarding tasks to be performed for resolving a customer query
Define processes to manage specific requests such as:
· Insurance quotes
· Claims
· Contract transfers
· Equipment exchanges
· Asset modifications
· Lease Renewals

Components of CRM Foundation used in OLM

· Resources
· Sales Representatives
· Remarketers
· Assignment Groups
· Interaction History
· Fulfillment

Summary of the modules used in OLM:

Functional
Financials : GL, AP, AR and FA
Contracts: Contracts core, Contracts Service
CRM: CRM Foundation, Installed Base, Telesales, iStores, Marketing Online
Distribution: Inventory, Advanced Pricing
(Telesales – Customer Service and Collections Functionality)

Technical
Workflow – Processes Approvals and Notifications
XML gateway – Integrates with Lease Price Modeling Software
Advanced Inbound and Outbound – Customer Service, Call Center functionality, Universal Workques, Fulfillment Server

Monday, May 19, 2008

Oracle Apps Reporting Tools

Introduction : Oracle provides over a thousand standard reports within the application. These standard reports are developed to cover common generic needs. Before creating any new reports, one should examine the standard report sets to determine if any meet the requirements. If requirements cannot be met with the standard Oracle report sets, tools are available to create custom reports.

The following matrix addresses reporting tool options, including:

A brief description
Who should be provided the access to the tool?
Advantages
Disadvantages
When is it appropriate to use?

(Click anywhere on the below image to ZOOM and read the complete table):

Saturday, May 17, 2008

Inventory Flexfield Structure Definition for a Food Processing and Distribution Company

Introduction - This real world case study on proposed item structure for a Food Processing and Distribution Company was based on the requirements of business, gathered through discussions during the implmentation project, as well as recommendations submitted by consultants.


1. Objective

The Decision on Inventory Flex fields Structure was taken based on achieving the following Objective:

Ø Item code structure across all Product lines & Products is required to be uniform;
Ø Item code should be simple and short;
Ø Item code numbering should be driven by a simple logic to avoid deciphering the codes by field staff;
Ø Item code should be independent of the personal view of the person defining the item;
Ø Item code should not be dependent on either supplier or customer codes;
Ø Each item should have code and a description to identify the item uniquely;
Ø Code should not be repeated in description and vice-versa;
Ø Expiry date and location of the item should be identified
Ø All items should be properly classified in a logical manner, so that MIS reports can be generated; and
Ø All existing reporting requirements are met, in addition to the reports available in Oracle Inventory.

In Oracle Inventory, an Item should have a System Flex field; in order to take advantage of the Oracle Apps, features, it is also recommended to use Category Sets, Lot number control and Locator to define an Item.

Based on the above, the following item code structure was designed.

2. System Item Flexfield

The System Item Flex field is used to define the Item Code through which an Item in the Inventory is identified uniquely. For the client's business, the System Item Flex field will be:

No. Of segment = 1
Segment Name = Item

Size = 6 Numeric

The segment will have serial no starting from 000001 to 999999. This gives flexibility to have 999999 items in the company. To ensure that items are numbered in a logical manner, range of serial no. will be allocated, so that serial no. can be used only from the range.

As a next step, Description of the item has to be entered to save the item in the system. It is proposed that the name of the supplier/brand, existing description and the package size shall be entered in description, eg. ABC Supplier (Brand), Mod Chicken (Description) and 900 grams (package size) so the description would be 'ABC Supplier Mod Chicken 900 Grams'.

3.Category Set

A Category is a logical major classification of items that have similar characteristics. A Category Set is a set of distinct categories in which an Item can be grouped/classified. E.g. one grouping or classification can be based on “Buying”; another grouping or classification for the same Items can be based on the Physical Inventory attributes. The flexibility of having multiple category sets allows reporting and query on items in a way that best suits business needs.

For our common business requirements across all departments, an Inventory Category Set will be created at the beginning with the following four segments:





*The segment size has been considered keeping in view that most of the business requirements are met. As these 6 segments are required to appear in Reports, GRNs, PO & Invoices hence, having longer size would mean that on the reports, other information might not fit in 80-column Or 128 column Stationery.. However, in system their full description can be entered and maintained. It is also advisable that these categories can be numbered properly to avoid extending the report size.

The values for the above 6 segments will have to be first updated and combinations also created. This will then be available as List of Values (LOV). Every time an item is created, this default category set structure will be attached to the Item, and the values for each of the segments can be selected from LOV. Few items have been classified under four segments:

Once a Category set is attached to an item, reports on its segments i.e. Focus, Brand, Category, Base Product, Product & Size can be generated. For an existing item, a Category set can be delineated, if required, and a new category set attached. Last change audit trail will be available in the system. A new category set can also be created or an existing Category set be disabled.

4. Lot Control

Lot control feature can be utilized to capture the expiry of items in the inventory. It plays a crucial role in the organizations, which are into Food Processing, Pharmaceutical and products that get expired due to elapse of time. It is proposed that the lot control feature can be enabled and used for all products. Basically, system will require a lot number and expiry date to be entered by the user to complete the transaction. Transactions are as follows:

A. Material Receipts
B. Transfer goods from one location to another location and
C. Material Issues

In case of material transfer between locations, user has to choose the lot number, which is already assigned to the items. This will eliminate multiple lot numbers assigned to single item in different locations for a better control. To ease the operations, it is proposed that the ETA date (Expected Time of Arrival) shall be entered as lot number for the item and the user has to input expiry date of the item. Preferably, these lot numbers should be pasted on the Pallets so that the inventory clerk can easily identify the location of the goods.

5. Locator Structure (To be used in Future)

Locators are used to identify physical location where the item is actually stored in the Warehouse/Store. Locator can track item quantity. An Item can also be restricted to a specific locator or a locator can be dynamically assigned to the item on receipt.


In order to use this available feature for better managing the inventory, we need to –
Ø Design the locator storage system based on the warehouse space and use structure for storing items.
Ø Paint the palettes using standard primary colors.
Ø Assign numbers to all the palettes.
Ø Define all the locator addresses in the Inventory system.
Ø Attach item to a locator.

It is proposed to use a Locator segment of Colour & Number, for e.g. R120 would mean RED colour palette number 120. This detail will help in tracking the item during transfers, issues and also during taking physical stock of the items. Proposed locator address structure is given below:



It is proposed that the locator will be defined in the system but the users will be using it once they are well versed with the system. The locators segment have to entered on following transactions:

A. Material Receipt to Warehouses
B. Transfer of goods from one location to another location
C. Movement of Goods within the warehouse
D. Issue of materials to Customers and Vans
E. Receipt of materials from Van and Customers

6. Benefits of the Proposed Item Structure

a. At the time of Item creation, the only User logic built into the item code is the Sub Division to which the item belongs.
b. The Item Code is short with one segment and is uniform across all Products.
c. Company can have up to 999999 items.
d. The Item Code is not dependent on the item code of the Vendor or Customer and is unique to the Client.
e. The probability of making duplicate item code is nil since the Item Code is unique in inventory. f. Items have been classified in an Inventory Category Set with six segments Type, Product Line, Brand and Product. In the existing system the classification is more or less the same. Focus, Brand, Category, Base Product, Product & Size will be available as List of Values for selection, so that typographical errors are avoided. However, it is important that the selection is correct to avoid changing the category subsequently.
g. Inventory Reports can be generated on any of the segments i.e. Item Code, Description, Focus, Brand, Category, Base Product, Product & Size to sort the items in Inventory Organization.
h. An Item can be attached with lot numbers & Locator to identify the location and expiry dates.
i. Stocks can be maintained Expiry date wise

Accounting entries in Receivables

A quick re-cap of accounting entries generated in Oracle Receivables:

Invoices:
When you enter a regular invoice through the Transactions window, Receivables creates the following journal entry:
DR Receivables
CR Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)

If you enter an invoice with a Bill in Arrears invoicing rule with a three month fixed duration accounting rule, Receivables creates the following journal entries:
In the first period of the rule:
DR Unbilled Receivables
CR Revenue

In the second period of the rule:
DR Unbilled Receivables
CR Revenue

In the third and final period of the rule:
DR Unbilled Receivables
CR Revenue

DR Receivables
CR Unbilled Receivables
CR Tax (if you charge tax)
CR Freight (if you charge freight)

If you enter an invoice with a Bill in Advance invoicing rule, Receivables creates the following journal entries:

In the first period of the rule:
DR Receivables
CR Unearned Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)

DR Unearned Revenue
CR Revenue

In all periods of the rule for the portion that is recognized.
DR Unearned Revenue
CR Revenue

Credit Memos:
When you credit an invoice, debit memo, or chargeback through the Credit Transactions window, Receivables creates the following journal entry:
DR Revenue
DR Tax (if you credit tax)
DR Freight (if you credit freight)
CR Receivables (Credit Memo)

DR Receivables (Credit Memo)
CR Receivables (Invoice)

When you credit a commitment, Receivables creates the following journal entries:
DR Revenue
CR Receivables

When you enter a credit memo against an installment, Receivables lets you choose between the following methods: LIFO, FIFO, and Prorate. When you enter a credit memo against an invoice with invoicing and accounting rules, Receivables lets you choose between the following methods: LIFO, Prorate, and Unit.

If the profile option AR: Use Invoice Accounting for Credit Memos is set to Yes, Receivables credits the accounts of the original transaction. If this profile option is set to No, Receivables uses AutoAccounting to determine the Freight, Receivables, Revenue, and Tax accounts. Receivables uses the account information for on-account credits that you specified in your AutoAccounting structure to create your journal entries.

Receivables lets you update accounting information for your credit memo after it has posted to your general ledger. Receivables keeps the original accounting information as an audit trail while it creates an offsetting entry and the new entry.

Commitments:
When you enter a deposit, Receivables creates the following journal entry:
DR Receivables (Deposit)
CR Offset Account

Use the AR: Deposit Offset Account Source profile option to determine how Receivables derives the Offset Account to credit for this deposit.

When you enter an invoice against this deposit, Receivables creates the following journal entries:
DR Receivables (Invoice)
CR Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)

DR Offset Account (such as Unearned Revenue)
CR Receivables (Invoice)

When you apply an invoice to a deposit, Receivables creates a receivable adjustment against the invoice. Receivables uses the account information that you specified in your AutoAccounting structure to create these entries.

When cash is received against this deposit, Receivables creates the following journal entry:
DR Cash
CR Receivables (Deposit)

When you enter a guarantee, Receivables creates the following journal entry:
DR Receivables
CR Revenue

Receivables uses the Receivable Account and Revenue Account fields on this guarantee's transaction type to obtain the accounting flexfields for the Unbilled Receivables and Unearned Revenue accounts, respectively.

When you enter an invoice against this guarantee, Receivables creates the following journal entry:
DR Receivables (Invoice)
CR Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)

DR Revenue
CR Receivables

When you apply an invoice to a guarantee, Receivables creates a receivable adjustment against the guarantee. Receivables uses the account information you specified in your AutoAccounting structure to create these entries.

When cash is received against this guarantee, Receivables creates the following journal entry:
DR Cash
CR Receivables (Invoice)

Receipts:
When you enter a receipt, Receivables creates the following journal entries:
DR Cash
CR Receivables

When you fully apply a receipt to an invoice, Receivables creates the following journal entry:
DR Cash
DR Unapplied Cash
CR Unapplied Cash
CR Receivables

Note: These examples assume that the receipt has a Remittance Method of No Remittance and a Clearance Method of Directly.

When you enter an unidentified receipt, Receivables creates the following journal entry:
DR Cash
CR Unidentified

When you enter an on-account receipt, Receivables creates the following journal entry:
DR Cash
CR Unapplied

DR Unapplied
CR On-Account

When your receipt includes a discount, Receivables creates the following journal entry:
DR Receivables
CR Revenue

DR Cash
CR Receivables

DR Earned/Unearned Discount
CR Receivables

Receivables uses the default Cash, Unapplied, Unidentified, On-Account, Unearned, and Earned accounts that you specified in the Remittance Banks window for this receipt class.

When you enter a receipt and combine it with an on-account credit (which increases the balance of the receipt), Receivables creates the following journal entry:
DR Cash
CR Unapplied Cash

To close the receivable on the credit memo and increase the unapplied cash balance, Receivables creates the following journal entry:
DR Receivables
CR Unapplied Cash

When you enter a receipt and combine it with a negative adjustment, Receivables creates the following journal entries:
DR Cash
CR Receivables (Invoice)

DR Write-Off
CR Receivables (Invoice)

You set up a Write-Off account when defining your Receivables Activity.

When you enter a receipt and combine it with a positive adjustment, Receivables creates the following journal entries:
DR Cash
CR Receivables (Invoice)

DR Receivables (Invoice)
CR Write-Off

When you enter a receipt and combine it with a Chargeback, Receivables creates the following journal entries:
DR Cash
CR Receivables (Invoice)

DR Receivables (Chargeback)
CR Chargeback (Activity)

DR Chargeback (Activity)
CR Receivables (Invoice)

You set up a Chargeback account when defining your Receivables Activity.

Remittances:
When you create a receipt that requires remittance to your bank, Receivables debits the Confirmation account instead of Cash. An example of a receipt requiring remittance would be a check before it was cashed. Receivables creates the following journal entry when you enter such a receipt:
DR Confirmation
CR Receivables

You can then remit the receipt to your remittance bank using one of the two remittance methods: Standard or Factoring. If you remit your receipt using the standard method of remittance, Receivables creates the following journal entry:
DR Remittance
CR Confirmation

When you clear the receipt, Receivables creates the following journal entry:
DR Cash
DR Bank Charges
CR Remittance

If you remit your receipt using the factoring remittance method, Receivables creates the following journal entry:
DR Factor
CR Confirmation

When you clear the receipt, Receivables creates a short-term liability for receipts that mature at a future date. The factoring process let you receive cash before the maturity date, and assumes that you are liable for the receipt amount until the customer pays the balance on the maturity date. When you receive payment, Receivables creates the following journal entry:
DR Cash
DR Bank Charges
CR Short-Term Debt

On the maturity date, Receivables reverses the short term liability and creates the following journal entry:
DR Short-Term Debt
CR Factor

Adjustments:
When you enter a negative adjustment against an invoice, Receivables creates the following journal entry:
DR Write-Off
CR Receivables (Invoice)

When you enter a positive adjustment against an invoice, Receivables creates the following journal entry:
DR Receivables (Invoice)
CR Write-Off

Debit Memos:
When you enter a debit memo in the Transactions window, Receivables creates the following journal entries:
DR Receivables
CR Revenue (if you enter line amounts)
CR Tax (if you charge tax)
CR Freight (if you charge freight)

DR Receivables
CR Finance Charges

On-Account Credits:
When you enter an on-account credit in the Applications window, Receivables creates the following journal entry:
DR Revenue (if you credit line amounts)
DR Tax (if you credit tax)
DR Freight (if you credit freight)
CR Receivables (On-account Credit)

Receivables uses the Freight, Receivable, Revenue, and Tax accounts that you specified in your AutoAccounting structure to create these entries.

Once the on-account credit is applied to an invoice, the following journal entry is created:
DR Receivables (On-account Credit)
CR Receivables (Invoice)

Sunday, May 4, 2008

Oracle Projects - Steps to make the Project Budgetary Control features work

Published on behalf of Ravishankar Panchapagesan:

· Set the value of the profile PA : Enable Budget Integration and Budgetary Control

· Enable Budgetary Control in the Set of Books window and choose a default Encumbrance account

· For the Budget Control Group “Standard” in GL menu, enter Projects as the source and Total Burdened Cost as the category and choose the fund check level of “ None”

· Ensure this is the value of the profile at the application or responsibility for the profile option “Budgetary Control Group”

· Check “Use PO Encumbrance in Payables Financial Option and enter values for PO and Invoice encumbrance type.

· In Purchasing menu, Open the Encumbrance year and period. In Purchasing, there are 2 Forms. One for Open and Close Periods and the other for Control Purchasing Periods. Use the Control Purchasing Period to open the Encumbrance Year and the corresponding GL period. This is a pre requisite for encumbrance to work. Use the Open and Close Periods for controlling Purchasing Period.

· Complete the set ups for Project type, budgetary control tab and create project templates and projects using the set up.

· Ensure that the budget entry method allows the entry of Total Burdened cost. You do not have to burden the transactions. System populates the raw cost budget into this field for budgetary control check.

· Ensure the pre requisite GL patches (No 1995914 and 2002508) are in the application. These patches are included in PA M as cumulative components.

· Enter transactions in AP and verify the process. Upon saving the invoice, navigate to the Tools Menu and click “ Check Funds” menu. System will display a message whether the invoice and its distribution lines will pass or fail funds check.

· Validate the invoice normally. Funds check will be performed upon validation based on the amount type and boundary code associated with the Project and the control levels chosen for the project, task, resource group and resource list level.

· Invoices that failed the funds check upon validation with the reason code “Funds checking could not be performed” cannot be manually released. You need to enhance the funds available.

· You can view the Transaction Funds Check Results in Projects regardless of the interface from AP.

· For each line that is passed funds check, in the above window, the system will display 2 rows: 1 with the status “Passed funds check” and the other with the status “Approved”

· Interface validated and accounted invoice distribution lines to Projects normally.

· Schedule to run the process PRC: Maintain Budgetary Control Balances based on business requirements. When this process is run, the system purges details of Funds check results display. Choose to run this process in conjunction with the value of profile option for PA: Days to maintain BC packets

· You cannot change the budget amount type for budgetary control in the Projects window after supplier invoice costs are incurred. However, you can change the control values and amount type and boundary codes. If you do, system will prompt the user to re baseline the current version of the cost budget used.