If you use Oracle Public Sector General Ledger's Budgetary Control feature, you can check funds before you save a transaction and you can have Payables Approval automatically create encumbrances to reserve funds for your transactions. For example, when you enter an invoice, you can use the Funds Check program to check if you have available budgeted funds to pay for an invoice or invoice distribution.
If you select absolute budgetary control in General Ledger, Payables Approval places an Insufficient Funds hold on any invoice that fails funds checking. If you use advisory budgetary control, Payables will allow the invoice to pass Approval, even if it fails funds checking. During Approval, Payables creates encumbrances to reserve funds against the budgets you define in Oracle Public Sector General Ledger. When you create the accounting entries for the transactions, it relieves the encumbrances.
As the final step of budgetary control in Payables, if you enable Use PO Encumbrance in the Financials Options window, Oracle Public Sector Purchasing automatically creates encumbrance entries to reserve funds for invoice expenditures against the budgets you define in Oracle Public Sector General Ledger.
Funds checking and budgetary control include nonrecoverable tax as part of the item cost to fully recognize the commitment because nonrecoverable tax becomes part of the acquisition cost of the item.
Setup=>http://sbllc3.solutionbeacon.net/pls/a159vis2/fndgfm/fnd_help.get/US@PSA_US/gl/@p_bc_setup@PSA_US#p_bc_setup
