Distribution Procedure 2 (Totals Based)

Purpose

The distribution procedure 2 (totals based) enables you to increase the existing expenditure budget for particular functional areas due to additional revenues. You use the distribution procedure if an expenditures FM account assignment is to get budget from revenues increasing the budget, irrespective of the actual requirement. What this means, is that an increase of the expenditure budget can take place at period of your choice using a program.

Unlike the distribution procedure 1 (document-based), no link between revenues documents and budget documents is made in this procedure. If this reference is not relevant for reporting purposes in your organization, you can use this procedure for the revenues increasing the budget.

Prerequisites

  • The required settings must be maintained in Funds Management Government Customizing.

  • You must have maintained the Rules for the revenues FM account assignments within the master data maintenance according to which the budget increase is to be performed. As a rule you must also define whether the budget increase takes place automatically or manually by storing a budget memo.

For further information on the required setting in Customizing, see the Funds Management Government IMG in the following sections:

  • Create budget subtypes

  • Carry out setting for budget subtypes

  • Define budget subtypes for automatic postings

  • Create budget memos

  • Define default values for rule maintenance

  • Make settings for distribution procedure 2 (totals based)

Process Flow

  1. The process begins when posting a revenue, for example a customer invoice which contains a revenues-FM-account assignment is addressed. There is no budget increase executed with this posting.

  2. In order to execute a budget increase automatically or manually you must first start the program RFFMUD21.

    The program checks if a rule is defined for the revenues FM account assignments, according to which a budget may be increased. If a rule exists, the program defines the expenditures FM account assignments on the basis of this rule, for which budget may be increased and also the increase amount, that does not apply to the expenditures FM account assignments and the surplus FM account assignment. Unlike the distribution procedure 1 (document base d), the budget is increased on the basis of the total amount, that was updated at the time of the budget increase on the revenues FM account assignment. Individual revenues documents are not considered.

    In the case of the automatic budget increase, the budget is increased in line with the amount determined for the expenditure FM account assignments. Budget documents were generated here.

    In the case of the manual budget increase, the budget is not increased. Instead, you receiver a log showing all the documents where a manual budget increase is required. You can use this list to decide which account assignments receive a budget increase manually - for example, by way of a budget supplement. You only receive the log for manual budget increases if you start program RFFMUD21 with the Manual budget increase option active.

    Note Note

    Budget Increases After Incoming Payments

    You must start program RFFMS200 before starting program RFFMUD21 if you have defined in Customizing that a budget increase should not take place until after the incoming payment. This program converts the line items in Funds Management from the status “invoice” to the status “payment”. For more information on program RFFMS200, see the program documentation.

    End of the note.

Distribution procedure 2: Revenues increasing the budget

Result

The budget is increased in the year determined by the system for the posting transaction, corresponding to the settings of the valid Update profile

Example Example

The budget increase should take place after the incoming payment. It is defined in the update profile that payments are updated Funds Management with the invoice date. A customer invoice posted in 1998, for which the payment takes place in 1999, increases the budget in 1998.

End of the example.

Within the Funds Management information system, you can use report Budget from revenues to display, for each expenditure FM account assignment, how much budget these FM account assignments have received from the revenues increasing the budget.

You can use a manual budget transfer to distribute residual revenues, which have flowed into the surplus-FM-account assignment, to other expenditure FM account assignments

The setting for output tax in Funds Management Government Customizing in the step Execute other settings affects the amount of the budget increase:

Output tax

If you are working

then the

Net display

The net amount of the revenue (income without VAT) increases the budget.

Gross display

The gross amount of the revenue (income plus VAT) increases the budget.

Separate display of the output tax

the output tax is not budget increasing, only the net amount