Is Encumbrance Accounting Mandatory for Budgetary Control to Perform Funds

Dear All,
I have a doubt in Project Management Module.
Is Encumbrance Accounting Mandatory for Budgetary Control to Perform Funds Check in Non Integrated Budget?( There is no integration between GL Budget and PA Budget)
Thank you.
Rajasekhar Itha

Hi,
If you are using your project budgets, you will not need many integration steps.
IF you have a budget integrated, then use that account as charge account when you are creating a PO, if budget is not available for that account or it is not a budget account then system will check for budget at project level.
You can have stand alone budget just for projects without any integration to GL budget and you can still achieve budgetary controls.
Let me know if you need more help.
Mubarak
[email protected]

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Hi,
I am using program hierarchy where I am using financial structure as well as Workplan structure. I have a project at the top which is tracked as a program (say) PRG1. I have three projects (P1, P2, P3) linked to the above program through the workplan at the task level.
I have budgets pre-defined (say 10000 $) for the program (PRG1) at the beginning of the year. I will enter this budget amount at a task in the program project.
There will be multiple projects (P1, P2, P3) starting at different times during the year falling within the above program scope whose budget as and when entered should not exceed the budget amount entered at the program level.
Case :
01-JAN-09 Program Level Budget entered at the beginning of the year - 10000$
01-FEB-09 Project (P1) started with a budget allocated from the above program - 3000$
Requirement is --> System should check against the program level budget and allow entry of this amount at the project (P1) level.
01-MAR-09 Project (P2) started with a budget allocated from the above program - 5000$
Requirement is --> System should check against the program level budget and allow entry of this amount at the project (P2) level.
01-JUN-09 Project (P3) started with a budget allocated from the above program - 3000$
Requirement is --> System should check against the program level budget and reject entry of this amount at the project (P3) level.
We had earlier successfully used this kind of solution but with GL Integration Budgets in Release 11.5.10.
--- the solution is briefly explained in metalink Doc ID: 790613.1
Since the new family pack M has these features of Program Structures/Hierarchy, can we use them to control my budgets using encumbrances at requisition and PO.
Request viewers , project functional consultants to pour in their views and solutions. I can share the detailed step by step solutioning done in Release 11.5.10 using GL Budget and Project Budget integration.
Thanks.

Thanks Dina for your suggested solution.
In Release 11i, we were using the solution of entering the TOP Budget amount against a GL Code Combination (Using Budget, Budget Organization definition) in GL. Then in projects, in the project type definition for budgetary control options we have entered -
Budgetary Control
Budget Type :     Approved Cost Budget
Balance Type :     Encumbrance
Non-Project Budget :     GL Funding Budget
Encumbrance Type :     PA Encumbrance
External Budgets :     GL Cost Budget
Then for each of these low level projects, we enter the project budgets against approved cost budget. We have customized the Work-Flow based Account Generator for the “Project Budget Account” to refer to the GL code combination used in the GL Budget. Then we baseline the budget and generate the encumbrance journal entries which reserve the funds for the project budget and baselines the project budget.
Next time for the second project, when it checks against the GL budget, we have the total budget minus the budget allocated to the first project. This way we had control of project level budgets not exceeding the amount entered in the GL.
But now the requirement is to reduce the dependency on GL module for this GL budget entries. Also we want to use Program Hierarchy for the single view that it offers. Since we are entering the budgets at the program level, we dont want to enter it again in GL following the solutioning in 11i.
Regards.
Edited by: Phani.Ch on Jun 13, 2009 7:50 PM

Oracle Purchasing - Encumbrance Accounting Entries

Dear Experts,
Please help me by giving your support to my query..
What are the accounting Entries system will generate for Encumbrance at the time of Requisition & Purchase Order in Oracle Purchasing
Thanks
Bharath

Refer:
http://www.oracleappshub.com/oracle-purchasing/accounting-fundamentals-for-techies-encumbrance-part-ii/
http://oracle.ittoolbox.com/groups/technical-functional/oracle-apps-l/what-all-are-encumbrance-accounting-entries-for-p2p-transaction-1098879
Regards,
Ivruksha

Defining Account Determination for Real-Time Integr

Dear all,
I haven't understood yet about Account determination for the real-time integration of Controlling (CO) with Financial Accounting (FI).
Please tell accounting process that use this account. And give me a detail example.
Thanks so much
Minhtb

Hello
This is the new feature in New GL accounting
During allocations in Controlling, most of the postings created do not affect Financial Accounting. These postings do not update any G/L account transaction figures; they are postings within Controlling. If, however, an allocation in Controlling leads to a change in the functional area or any other characteristic (such as Profit Center or Segment) that is relevant for evaluations in Financial Accounting, a shift occurs between the affected items in the profit and loss statement. For this reason, this information has to be transferred to Financial Accounting. This reconciliation between Controlling and Financial Accounting takes place by means of real-time integration.
As a result of real-time integration, all Controlling documents that are relevant for General Ledger Accounting are transferred from Controlling to General Ledger Accounting in real time. This means that Financial Accounting is always reconciled with Controlling.
A document is created in Financial Accounting for each posting in Controlling. This means that the detailed information contained in the CO documents is always available in reports in New General Ledger Accounting. This information can be sorted by the following, for example:
●     Functional area
●     Cost center
●     Internal order
Real-time integration replaces the reconciliation postings from the reconciliation ledger. Consequently, you do not need a reconciliation ledger.
If, however, you do not set the Reconciliation Ledger Active indicator in Customizing for the controlling area, you cannot use the reports belonging to report groups 5A* (5AA1-5AW1). You set this indicator in Customizing for Controlling under General Controlling ® Organization ® Maintain Controlling Area. The reconciliation ledger serves as the data source for reports belonging to the report groups 5A*. You find these reports in the SAP Easy Access menu under Accounting ® Controlling ® Cost Element Accounting ® Information System ® Reports for Cost and Revenue Element Accounting.
Replacement reports are available as follows:
●     You find the reports in the SAP Easy Access menu under Accounting ® Controlling ® Cost Element Accounting ® Information System ® Reports for Cost and Revenue Element Accounting (New).
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●     From the report Financial Statements Actual/Actual Comparison, you can call up the report Cost Elements: Breakdown by Company Code. You find the report Financial Statement: Actual/Actual Comparison in the SAP Easy Access menu under Accounting ® Financial Accounting ® General Ledger ® Information System ® General Ledger Reports (New) ® Balance Sheet/Profit and Loss Statement/Cash Flow ® General ® Actual/Actual Comparisons.
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Prerequisites
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In Customizing for Financial Accounting (New), you have processed the IMG activities under Financial Accounting Global Settings (New) ® Ledgers ® Real-Time Integration of Controlling with Financial Accounting.
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●      Cross-Business Area
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Activities
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Example
An internal order for business area 0001 is settled to a cost center of business area 0002. The document from this allocation is transferred in real time to Financial Accounting.
Reg
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Budgetary Controls and Encumbrance Accounting

My understanding is that if I enable budgetary control in GL then that would force us to enter budgets using journals only (amounts cannot be entered directly). Does budgetary control also force us to use encumbrance accounting? Would PO module then be producing encumbrance if budgetary control is enabled? Can we have budgetary control enabled without forcing the system to produce encumbrance accounting?

Hi
You must enable encoumbrance accounting in Purchasing and Payables.
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Dina

Confirmation Control Key Should be mandatory for PO document type

Hi All,
I want to know, is there any configuration settings to make mandatory "confirmation control key" for the Particular Purchasing document type's.
If it is not there what should be the best to achieve this requirement.
Thanks in Advance,
Shankar.

Hi
I think there is no standard setting to make mandatory document "confirmation control key" for the Particular Purchasing document type's.
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Account assignment mandatory for material

Hi,
While creating contract i am facing this warning message..i can ignore this message , but what is the root cause for it.
Error is :
"Account assignment mandatory for material 100000040 (enter acc. ***. cat.)
Message no. ME062
Diagnosis
There is no provision for value-based inventory management for this material type in this plant. Account assignment is thus necessary.
Procedure
Please enter an account assignment category"
I checked Qty and value update in OMS2 also.
It is maintained.
Then what is wrong?
Uts

Hi,
Account assignment determination depend on the valuation class. When your account assinged category is mandatory in that case go and see the account modifier assigned in account assinged category. After that verify the G/L account in OBYC for key GBB and account modifier and respective valuation class assigned in material master.
If the entery does not exist then system will give you an error message.
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Account assignment mandatory for material 702 (enter acc. ***. cat.)

Account assignment mandatory for material 702 (enter acc. ***. cat.)
Message no. ME062
Diagnosis
There is no provision for value-based inventory management for this material type in this plant. Account assignment is thus necessary.
How to rectify this error

Go to transaction type OMS2. Check whether the material type u are using is ticked for Value update.
If not,
a. Use a different material type
b. or Use an account assignment category.
Regards,
Anantha

While Creating PO its saying account assignment mandatory for the material.

Dear All
I have created a material with Mechanical Engineering as Industry sector and ROH as Material Type.
For this material i created PR and PO both the time it said account assignment is mandatory.
Why this happens?
I don't want to enter any account assignment category.
Pls help.
Regards
Depin

Hi,
Normally purchasing ROH with PO needn't to assign the account assignment category, but if don't create accounting view for the ROH material or create the accounting view without valuation class assigned, system can't find the relevant stock account automatically, so will issue the message just like "Account assignment is mandatory".
So you should check the material master data, if it's fine, then you will not see the message any more!
Good luck
Tao

ACCOUNTING DOCUMENT FOR CONTROLLING DOCUMENT

Hi Experts,
I would like to know which table provides me the accounting document for the related Controlling document.
ie. If i gives a controlling document for a table as an input in SE16 i should get the related accounting document . please help...
Thanks and regards,
Anand. K

GLPCP Plan Line Items
GLPCT Totals Table
GLPCA Actual Line Items
GLPCO Object Table for Account Assignment Elements
GLPCC Transaction Attributes
Regards,
Sangram
Moderator: Irrelevant

ME21N : account assignment mandatory for bulk material

Dear guru.
For a raw material used as bulk in production with material type ROH and quantity/value updating I need that when I create purchase order the system send an error message that account assignment is mandatory.
I know that for an NLAG or UNBW material type the system send this message.
For internal reason I need to maintain material type ROH with quantity/value updating , do you know a solution , any exit , in order to solve my problem ?
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CONS SAP wrote:
Dear
> I need that this component in the bill of material must be managed with position type L and I donu2019t want to do consumption movements.
> I have verified that I can create a purchase order with account assignment for this material , I need only that the system send a message for these bulk materials.
> Thanks.
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why do want the material to be inventory managed and at the same time dont want to record consumption movements?

Issthe PO Error message *Account assignment mandatory for material

At the time of creating the PO after putting the material and plant I get the error message " *Account assignment mandatory for material 10000213". The plant for which i want to raise is 3004 which i have created recently and only in this plant this message is showing. Please help me out
Edited by: amitekum on Sep 17, 2010 12:34 PM

you should have searched sdn first for this
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For stock transfer PO we need account assignment Mandatory with default value "K" while creating the stock transfer PO.
How we can do this?
With Best Regards,
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Thanks for the reply.
We want the same functionality as described by you.
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Hi Sharanappa
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SPRO>LOGICTICS GENERAL>MATERIAL MASTER->BASIC SETTING->MATERIAL TYPES-->DEFINE ATTRIBUTES OF MATERIAL TYPE
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Is Encumbrance Accounting Mandatory for Budgetary Control to Perform Funds

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