This document describes the criteria and process used for verifying expenditure allowability and funds availability when processing transactions (i.e., actual expenditures or encumbrances/commitment) to a project/task/award (PTA).
In the RF Oracle business system transactions are processed to a project'/task/award based on
When transactions are processed in the RF Oracle business system, the system first verifies that the project/task/award will accept the transaction and that the expenditure item date is within the active period for the project/task/award.
Below are the general requirements for transaction allowability
One it is determined that the expenditure is allowable on a PTA the funds availability is verified through a process called Funds Checking. The Funds Checking process verifies that funds are available based on the budgeted amounts and any existing budgetary control restrictions. When the system attempts to process an expenditure that is in excess of the budget and existing budgetary control restrictions, items "fail funds checking" or create shortages (payroll encumbrances). For more information, refer to "Budgetary Controls" .
The Funds Checking Process occurs nightly.
To reflect a more accurate project/task/award balance, the Research Foundation funds checking process allows all actual expenditures for payroll and batches entered in the Grants module (usage, miscellaneous transactions, or time card) to charge to a PTA regardless of funds availability. Therefore, payroll transactions and grants batches can overspend a PTA regardless of budget and budgetary control restrictions.
The RF payroll encumbering process determines funds availability for encumbrance creation based on the available budget and any existing budgetary controls for a PTA. Encumbrances are created up to the available balance based on budgets and any existing budgetary controls. Therefore, funds in excess of the budget will create an encumbrance shortage. For more information on payroll encumbering, refer to "Payroll Encumbering Process".
The on-line funds checking process is used for transactions that are entered through the AP/PO/REQ module. If sufficient funds are not available based on the budget and budgetary controls, the items fails funds checking and is not processed to the project/task/award until it is reconciled.
Overexpended awards, projects, and tasks should be monitored timely and the appropriate action should be taken. For more information, refer to
Accounts Payable invoices, purchase orders, and requisitions "on-hold" or "incomplete" should be monitored timely and the appropriate actions should be taken.
For information on monitoring AP invoices, refer to
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