Budgetary Ledger Example  

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       1.      You create a budget of $1000 by going to the Easy Access menu and choosing Public Sector Management ® Funds Management ®Budgeting  ® Budget Control System (BCS) ® Entry Documents ® Budgeting Workbench.

       2.      The system asks you to specify an FM area and a layout variant.

The Budget Workbench: Create Document screen appears.

       3.      Maintain header data as follows:

¡        Process: Enter

¡        Budget Category: Payment or Commitment

¡        Document type

The budgetary ledger requires an entry here.

¡        Version

¡        Document date

¡        Posting date

This is another entry required by the budgetary ledger.

       4.      In the Lines, section, enter the budget type, funds center, commitment item, and other objects you want to use.

       5.      Then specify the budget amount.

       6.      Save your entries.

The system displays a second line, if so configured. It is now possible to make postings against this budget.

       7.      Display the document by choosing Environment ® Related Documents.

The Display Document: Entry Screen shows the budget details you have just posted.

       8.      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.

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

   10.      The item overview screen for creating a purchase order appears.

   11.      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.

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

   13.      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.

   14.      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.

   15.      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.

   16.      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.