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GeekInterview.com > Interview Questions > Oracle Apps > GL
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Question: What is Budget and Encumbrance ?
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| June 06, 2009 08:46:35 |
#2 |
| satishmkumar |
Member Since: May 2009 Total Comments: 10 |
RE: What is Budget and Encumbrance ?
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Budgets are used for better planning and control expenditures. A Budget is a collection of (1) PERIODS (2) ACCOUNTS (3) AMOUNTS
Balance Types are of 3(Three) types...
1. Actuals
2. Budgets
3. Encumbrance
(1) Actuals: Actuals are the journals which are reported from Payables, Receivables, Cash Management etc., These are the balances which are used to prepare our financial statements.
(2) Budgets: Budget balances are the funds are allocated to the various accounts.
(3) Encumbrance: Encumbrance balances are the funds reserved for the budgets for future expenses.
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