Managing financial commitments is a very important task for customers needing to track expenditures, either in the public or private sector. Financial commitments can have a huge impact in controlling expenses for the year and to allow budget amounts to stay on track. Often times, we see discrepancies between the commitment amounts from what is committed on the order versus the amount open on the order. There can be numerous factors that cause these integrity issues, which can be covered in another topic. This blog is to provide a best practice for managing these commitment integrity issues and how to properly fix these integrity issues.
Identifying Commitment Integrity:
To properly identify if an account has an integrity issue, it is recommended to run the R40910 (Commitment Integrity Report) on a regular basis. This report compares data from the F4311 (Open Amount) to the F43199 (PA Ledgers – Committed Amounts), as well as the F43199 (PA Ledgers – Committed Amounts) to the F0902 PA ledger amounts. This report can be ran to display all accounts, but the output of the report can be greatly reduced by setting a processing option to display only the accounts that have an integrity issue (Processing Option #1 on the Process tab). It’s often asked how often this report should be ran. There really isn’t a right or wrong answer to this question. It really depends on how many transactions are being processed that affect commitments. For some customers, running this report once a week may be sufficient, while other customers find they have to run it multiple times a day. What you want to avoid is turning on financial commitments, processing transactions for a year and then decide to run this report. Trying to play catch-up in fixing integrity issues can be a difficult task. Having recent data in the system will more likely allow for the ability to determine what caused the commitment integrity (process related, data related, etc.). All batches that affect commitments (receipts and voucher batches) should be posted prior to running this report. Otherwise, false variance will appear on the output of this report.
Fixing Commitment Integrity Issues:
Once valid commitment integrity issue has been identified, the next steps to resolve the issue is running the purge, rebuild and repost process. Most customers familiar with processing their financial commitments are familiar with this process, but as a reminder, information on this process can be found in Encumbrance Purge / Rebuild / Repost Process (Doc ID 625633.1). What I would like to discuss in this blog are best practices when running this process. First, you must decide on what data selection should be used throughout the process. Was the commitment integrity issue caused by only one document? If so, it may be best to data select on this one document in the R43199P and R00993. The issue is that the R00932 only allows data selection on the F0901 table, so the account number on the order would need to be known to complete this process. If you believe this issue may be related to many different transactions, then the account number can be used throughout the entire process. What should be avoided is running this process wide open and rebuilding and/or reposting transactions that are already correct. Another piece of advice is to double check that all of the batch applications are properly executing. Any easy way of doing this is to keep the P40230A open for inquiry during the purge and rebuild process. Once the R43199P (Purge) is ran, the P40230A should not display any records for that account or document (depending on the data selection used). These records should reappear when the R00993 is executed. You should also see the program id of the F43199 records being updated with the R00993 value after the rebuild is done. The same can be said for the F0902 PA ledger records after the R00932 is ran.
Hopefully, the above tips will help you manage your commitments. Staying on top of these transactions to ensure that the transactions are being processed without integrity issues will make life easier with this complex process. If you’re new to this process, another helpful document to review is Checklist for Troubleshooting Commitment / Encumbrance Integrity Issues (Doc ID 657403.1). And as always, feel free to interact with other users in the Distribution - JDE1 (MOSC) Community or work with Global Customer Support by opening a service request to assist with these commitment issues.