Budget Carryforward

Use

You can carry forward budget for commitments and residual budget from the old to the new fiscal year using this process.

Budget for Commitments

If you have carried forward open commitments to the new year, the consumable budget in the old year becomes free again. If the commitment carried forward does not debit the budget of the new fiscal year, you can carry forward the budget for commitment to the new fiscal year.

Residual expenditure budget

The residual budget of a year can be positive or negative. The system determines the residual budget as follows:

Current budget

–

Consumable budget

–

Budget from commitment carryforward still to be carried forward

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=

Residual budget

Negative residual budget

Residual budget can become negative if the consumable budget and the budget still to be carried forward from the commitment carryforward exceed the current budget. The carryforward of negative residual budget debits the budget of the new fiscal year; it functions as an advance on the budget of the next new year.

There may be negative residual budget if, for example, you work with one fund and annual values. The fund was not budgeted, but the commitment values or actual values for this fund exist due to the settings for the tolerance limits in the availability control. The following year’s budget is then debited accordingly during budget carryforward.

Residual revenue budget

If you have budgeted expected revenues, the actual revenues may differ to your standard values. If the actual revenues are smaller than your standard values, you can carry forward this “error amount” to the new year as residual budget.

Derivation Strategy for Reassignment

You can control the processing of residual budgets differently by defining a Derivation Strategy .

Prerequisites

Note that you can only carry forward commitment if the definitions made in the default settings for the year-end operations of Customizing for Funds Management Government allow this. For more information, see the IMG of Funds Management Government, section Enter Default Settings. Using program RFFMCFM1 Monitor Closing Operations , you can get an overview of the current Customizing settings.

The Commitment Carryforward must be executed before the budget carryover because the budget tied to the commitment is included in the calculation of the residual budget.

If you are using the function Revenues Increasing the Budget (distribution procedure), you must use the corresponding program to execute the budget increase. For more information, see Increasing the Budget .

Process Flow

Process flow of residual budget

In order to transfer residual budget, you execute the following steps:

  1. Create Derivation Strategy for Reassignment and Assign FM Area .

    You create the derivation strategy in the Customizing of Funds Management in IMG activity Derivation Strategy for Reassignment, and then assign a fiscal year for your FM area in IMG activity Assign Derivation Strategy to FM Area .

  2. Maintain Derivation Rules

  3. Prepare Budget Carryforward (BPINDX05)

  4. Determine Budget Carryforward (RFFMCF25)

  5. Carrying Forward Budget to the New Year (RFFMCF30).

    Note Note

    You only need to execute steps 1-2 if you want to control the budget carryforward for individual FM account assignments.

    You must carry out steps 3-4 together to ensure that the carryforwards are based on the most up-to-date data.

    End of the note.
Commitment Budget Process

In order to carry forward budget to commitments, execute steps 3-5 only.

Result

The budget carried forward is available in the new fiscal year.

Note Note

If a budget carryforward has taken place for a fiscal year, you can no longer change the setting for the behavior of the availability control in the hierarchy. For more information on this, see the IMG of Funds Management Government in the section Define Behavior of the Availability Control in the Hierarchy.

End of the note.