Multi-Year Budget Execution

Use

These functions enable you to manage your budget across several years for Funds Management (FM).Business processes then refer to the respective budget and no longer to the fiscal year (FY), Because of this, the closing operations carried out for the fiscal year change, such as the commitment carryforward and the budget carryover are no longer necessary for multi-year budget execution. This system setting simplifies the closing operations of the fiscal year.

The following graphic illustrates examples of independent sequences and overlapping financial years. A purchase order posted for the 2002 budget in fiscal year 2002 can – referring to the same budget – be reduced by an invoice posted in fiscal year 2003 even though the 2003 budget has already been executed by this point.

This graphic is explained in the accompanying text.

Graphic: Multi-Year Budget Execution

The multi-year budget execution also allows you to manage several independent budgets with different time frames and requirements in an FM area.

You can decide whether multi-year budget execution is suitable for your organization based on the following:

Your organization has a budget that should allow multi-year availability control and budget execution to take place. The fiscal year change has a subordinate significance on your budget execution.
You work with financings in your organization that are mapped through funds.
You want to work with several independent budgets in an FM area (for example, a budget represents a certain region). The runtime and the business processes allowed can be defined separately for each budget.
Your organization uses period-based encumbrance tracking. Each business transaction that can be reproduced via a logical document chain must be reflected in the budget against which the commitment was originally posted. However, it should be possible to assign any adjustments made to an account through follow-on documents.

Integration

Activating multi-year budget execution has a number of effects on the components master data, budgeting, actual/commitment postings, closing operations and reporting in Funds Management. Because of this, you should check whether the prerequisites mentioned below for your organization have been met before activating this system setting.

If you already use the Funds Management component and want to migrate to multi-year budget execution, you can find more information in note 640452.

Prerequisites

Before you can use multi-year budget execution you must have multi-year master data. The FM account assignment element ’fund’ is obligatory.

For more information, see Multi-Year Budget Execution: Master Data Maintenance .
You must use the Budget Control System (BCS)as your budgeting tool. It is not possible to use former budgeting, as it is not supported. Information on migrating former budgeting to BCS can be found under Migration of Former Budgeting to BCS

For more information on this, see Multi-Year Budget Execution: Budgeting/Availability Control .
You use an update profile supported by a posting date-based update as this is entered for update profile 000101 for example.
The actual/commitment posting requires Period-Based Encumbrance Tracking .

For more information on this, see Multi-Year Budget Execution: Budget Execution .

Features

You activate multi-year budget execution for each FM area. In addition to the Funds Management functions mentioned above, the following functions are also available for this system setting:

Closing Operations

You want to close an old budget and transfer the existing budget or commitment values to the new budget. Specific transfer postings can be used for this.

For more information, see Multi-Year Budget Execution: Closing Operations .

Reporting

If your organization requires annual reporting despite having multi-year budget execution, this is possible by using the functions provided to accommodate this.

For more information on this, see Multi-Year Budget Execution: Reporting .

Archiving

The archiving programs of Funds Management were enhanced for multi-year budget execution. It is not possible to execute an archiving run for each fund.

Activities

You activate multi-year budget execution in the Customizing of Funds Management, under Start of the navigation path BasicSettings Next navigation step Activate Multi-Year Budget Execution End of the navigation path

For more information, refer to the documentation on this IMG activity.