Absolute Budgetary Control Allows Negative Amounts
(Doc ID 2540107.1)
Last updated on DECEMBER 04, 2019
Applies to:Oracle Fusion Budgetary Control - Version 188.8.131.52.0 and later
Information in this document applies to any platform.
This is the case:
1. To create an internal requisition you need a cost for the item you're requesting. Let's suppose it is 6.50
2. The control budget is set to absolute and you only have 6.50 available, so the amount is reserved and the available is 0
3. The internal requisition is approved and the transfer order is created
4. What's next, the transfer is not shipped just because, whatever reason you like
5. At the same time, a purchase order is received for the same material. The purchase order item price is now 7.00
6. The cost processor runs and now the new cost is 6.75, higher than the price set in the internal requisition
7. After that, you shipped the transfer order. It is important to mention that is an expense destination and a receipt is required.
8. You create a receipt for the transfer order and everything goes perfect, although the average cost is now higher
9. Then, you run Transfer Transactions from Inventory to Costing, then Create Cost Accounting Distributions, Create accounting for cost management, then transfer transactions from Receiving to costing, create receipt accounting distributions and create accounting
10. The expense account is charged with 6.75 and the budgeted amount is now -0.25
Keep in mind the following:
a. The option Budgetary control enabled for internal expense transfer receipt transaction subtype is set to Yes
b. Encumbrance accounting is enabled
1. Is this expected behavior?
2. Why budgetary control is letting these transactions continue?
3. Is there a way to workaround this?
4. Customer is expecting the application to control this kind of transactions
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