Sufficient Funds Checking

Sufficient funds checking is an option that can be used to stop the processing of document transactions when an account does not have a balance large enough to cover expense transactions.

Sufficient funds checking can be established on an account-by-account basis. If the TP Sufficient Funds Check option on an account is selected and the Account Sufficient Funds Code is set to a value other than N (no checking), then the account is checked for sufficient funds by Financials.

exclaim The Budget Checking Options Code on the Systems Options Maintenance table must be enabled in order for the sufficient funds checking to occur on transactional documents.

go-arrow-red For more information about the TP Sufficient Funds Check option, see Account.

The account sufficient funds code of an account determines the level at which sufficient funds is checked. The options are:

• Object Code: The specific object code to which expenses are being applied is checked to see whether sufficient budget exists.

• Level: The object level with which the expense object code is associated is checked to see whether sufficient budget exists.

• Consolidation: The consolidation level with which the expense object code is associated is checked to see whether sufficient budget exists.

• Account: The budget balances of all expense object codes on the account are added up and checked to see whether sufficient budget exists.

• Cash: The cash balance of the account is checked to see whether sufficient cash exists.

Object code, level, consolidation and account checks are all made by comparing budget to actuals. The calculation used is:

Sufficient Funds equals Budget less Actuals less Encumbrances less Pending Ledger Entries

Cash checking uses a different formula:

Sufficient Funds equals Cash Balance less Liabilities less Encumbrances less Pending Ledger Entries

pencil-small The encumbrances include pre-encumbrances, external encumbrances, and internal encumbrances, depending on the account.

If an account does not have sufficient funds, it presents the user with an error message and does not allow further processing of the document.

A message displayed in the Accounting Lines tab indicates which account does not have sufficient funds.

exclaim Not all Financials financial document types perform sufficient funds checking. The following document types do not check for sufficient funds: Advance Deposit, Auxiliary Voucher, Cash Management, Cash Receipt, Credit Card Receipts, Journal Voucher, Pre-Encumbrance, and Procurement Card.