A Control Budget is an approved budget that is actively monitored and enforced within Oracle Fusion. It serves as a financial threshold against which expenditures (actuals, commitments, encumbrances) are validated before they are processed.
Unlike planning budgets, which are for tracking and forecasting, this enforce spending rules.
Purpose of Con
trol Budget
- Prevent overspending by stopping or warning users when transactions exceed the approved budget.
- Enable real-time fund checking for commitments (like purchase orders) and expenditures (like invoices).
- Support auditability and compliance by keeping records of approvals, revisions, and usage.
- Improve cash flow management by ensuring expenses are aligned with funding.
This is a Budget that is created in Oracle Fusion Budgetary Control to prevent overspending of Budgeted Amount
In oracle Fusion Project if Budgetary Control is enabled ,Project manager can gain control over spending of Project Budget
Controlled Budgets are automatically created when you create baseline versions of Project Budget if it is enabled for Budgetary Control
You can also import Budget enabled for Budgetary Control using File based Data Import Process
Check here more PPM setup blog
Consider a Scenario
Suppose the Budget version of a Project Amount is $200 for a labor resource and $300 for a financial resource.
When you create a baseline version of the Budget,corresponding Control Budgets are created in Oracle Fusion Budgetary Control.This Budget contains the control levels from Financial Plan Type such as -Absolute,advisory and Track
When the project incurs expenditures,the expenditures are checked against the control budget,they are restricted from over spending if the control level is Absolute
you will get warning message if the controlled Budget level is either advisory or Track Control
Benefits of Using Control Budgets
- Reduces risk of budget overruns
- Ensures compliance with funding restrictions
- Improves visibility into spending
- Automates governance with real-time validations
Watch here Project execution management Overview in Oracle Fusion
