How does budget checking work in Direct Journal Payments

Hi,

We are on PeopleSoft 9.2. We are trying to test budget checking process for different transactions for a particular project and activity if the amount is over the remaining spending authority (RSA)-- among them, there is Directly Journal Payments in AR. In creating a Directly Journal payment, we enter the revenue side( credit ) and system automatically populates the cash side (debit) when we click on the create accounting entry button. So, in this case, I entered the Project, activity on the debit side and the system created the credit side with the same project activity value. The debits being