In R12 Budgetary Control is part of the validation of SLA for those products that use SLA.  For non-SLA products (eg GL) then the validation is the same as in previous releases.

The Budgetary Control (BC) flag on the ledger is the highest level flag to check to see if BC is enabled.  However setting this alone does NOT execute the budgetary control validation.  SLA must create the accounting first and then call BC validation.   The SLAM assigned to the ledger must have BC enabled JLDs.  SLA must be called in BC mode, this executes only BC enabled JLDs and BC validation.