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Are funds available for your request? Avoid budget check errors on your Requisitions by doing a pre-check of the budget

Anup Maduskar
Principal Product Manager

For any organization where a budget is limited, you may requisition Items for your project without knowledge of whether your supervisor will approve the expense. You click the budget check button on the requisition hoping the budget check status hyperlink shall change to ‘Valid’ but only to be disappointed to learn the budget  check status hyperlink went to ‘Error’ due to insufficient funds.

PeopleSoft provides powerful pre-check budget functionality to enable requesters to check upfront whether there are provisional budget funds to ensure the requisition passes the budget check validation.

Enabling Budget Check and Budget Pre-Check

You may need to work with your system administrator to enable the one-time setup explained below.

Navigate to SetUp Financials/Supply Chain>Install>Installation Options 

Drill down to the products hyperlink in the General Options Column:

Enable checkbox for Purchasing in Enable Commitment Control section.

Navigate to SetUp Financials/Supply Chain>Install>Installation Options 

Drill down to the Commitment Control hyperlink in General Options Column:

Enable checkbox of Purchasing in Enable Budget Pre-check section.

Navigate to Commitment Control>Define Control Budgets>Source Transactions search for source transaction type- REQ-PREENC purchasing requisition-enter field name REQ_STATUS and field value-O which implies ‘Open’ status in selection criteria section and selection criteria for check Only. Similarly for other requisition statuses like field value-A implies ‘Approved’, etc.

Now we shall see how the requester can use the budget check and pre-check budget functionality for the requisition.

The requester adds Items to the shopping cart, goes to checkout, and saves the requisition in ‘Open’ status. The requester wants to know whether there are sufficient funds to pass the budget checking so the requester clicks on the Pre-Check Budget hyperlink.

If funds are available at that time, the budget check status changes from   ‘Not Checked’ to ‘Provisionally Valid’.

The requester may feel confident that the requisition will pass the budget check and be applied against the pre-encumbrance balance. The requester now clicks the check budget hyperlink. Budget check status eventually goes to ‘Valid’.

Alternatively, the requester adds Items to the shopping cart, goes to checkout, and submits the requisition. The pre-check budget and check budget functionality can be utilized after requisition has been ‘Approved’ or for a requisition in ‘Approved’ status in the same way as explained for requisition in ‘Open’ status.

Your organization may wish to consider implementing the pre-budget check functionality delivered by PeopleSoft to control spend and to ensure requests comply with company budget policies.

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