Your customer is implementing budgetary control with encumbrance accounting. Your customer has businesses in Australia, New Zealand, and Singapore with a
ledger in each country with a Corporate chart of account instance that has four segments.
Which two statements are true regarding the creation of a control budget?
A.
Control budgets are always absolute to generate encumbrance accounting.
B.
A control budget can allow override rules only if the control level is absolute.
C.
The control budget structure has all the chart of account segments as budget segments.
D.
A control budget is associated to a ledger and creates three control budgets for Australia, New Zealand, and Singapore.
E.
A control budget can be associated with a different calendar than accounting calendar.
B-E are the right answers.
Override setting only apply to accounts within a control budget that have Absolute control level.
there is an option of Allow Ovverirde when defining the Control Budget even if its absolute, advisory or track
now how is B option correct ?
B.
A control budget can allow override rules only if the control level is absolute.
E.
A control budget can be associated with a different calendar than accounting calendar.
Could you help me please.
I agree and understand with E
But why B is more accurate than D.
D is false ? Why ?
B-E:extract from note Oracle ERP Cloud Budgetary Control and Encumbrance Accounting Implementation Guide (Doc ID 2131138.1)
Override settings only apply to accounts within a control budget that have Absolute control level. For transactions with accounts that have Absolute control level, if there are insufficient funds based on funds available by period and account, or if the period is not open, there is an option to request an override for requisitions, purchase orders, Payables invoices or General Ledger journals.
WHY ARE BUDGETARY CONTROL AND ENCUMBRANCE ACCOUNTING SEPARATED?
Some organizations want to budget and control spending at a different level than general ledger accounting. Oracle ERP Cloud supports this by allowing the budget calendar and account structure used in Budgetary Control to be different from the accounting calendar and chart of accounts used in General Ledger