Former Budgetary Ledger Example 

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       1.      Having activated the budgetary ledger for FM area USFG as described in Preparing the Former Budgetary Ledger, you create a budget of $1000 for it by choosing Public Sector Management ® Funds Management ® Budgeting  ® Budgeting ®Original Budget ® Enter.

The Enter Original Budget: Initial Screen appears.

Effect of the budgetary ledger: You must enter a posting date and document subtype for the budget at line item level if you have configured subtypes for that level. Though you can choose to configure subtypes for the header, we recommend that you configure them for line items.

       2.      Maintain the initial screen to meet your needs and choose Enter.

The Enter Original Budget: Entry Screen appears.

       3.      Enter the funds center and commitment item you want to use. Then specify the budget amount.

       4.      Save your entries.

The system confirms that the budget has been created by displaying a document number.

       5.      Display the document by accessing transaction FR60 and specifying the document number.

The Display Document: Entry Screen shows the budget details you have just posted. You can use the Budgetary Ledger pushbutton to view the effects there of the postings you have made.

       6.      Now make a posting against your new budget. In this case, we will create a purchase order. In the Materials Management (MM) part of the Easy Access menu, choose Purchasing ®Purchase Order ®Create.

       7.      The initial screen for creating a purchase order appears. Make the entries you require and press Enter.

The item overview screen for creating a purchase order appears.

       8.      Enter an order in the amount of, say, $300. Remember to save your entries.

The system confirms the posting and gives you a purchase order number. The purchase order is recorded in MM and Funds Management (FM).

Effect of the budgetary ledger: A Financial Accounting (FI) document is created and posted. This document is passed through the split processor so that the relevant accounts in the Special Ledger (SL) can also be updated.

       9.      Now the goods ordered arrive, along with the invoice.

¡        For the goods receipt, go to the MM part of the Easy Access menu and choose Inventory Management  ®  Goods Movement  ®  Goods Receipt  ®  For Purchase Order.

¡        For the invoice receipt, go to the FI part of the Easy Access menu and choose Accounts Payable  ®  Document Entry  ®  Invoice.

Effect of the budgetary ledger: Postings are made to budgetary accounts in FI. As with the original purchase order, the documents pass through the split processor and update the SL accounts.

   10.      Now pay the invoice. You do this using the standard payment run function in transaction F110. See Paying for Goods and Services for details.

Effect of the budgetary ledger: The budgetary ledger should be configured in such a way that its postings cancel each other out, so that there is no net effect at this stage.

   11.      When the US Treasury confirms that the payments have been made, you need to run the treasury confirmation program to update your agency’s accounts. See Running the Treasury Confirmation Program for details.

Effect of the budgetary ledger: In addition to the standard updates in FI and FM, postings are made to budgetary accounts in FI and, by way of the split processor, to the SL accounts.