Purpose

If it is likely that you will have to reduce the budget originally planned in the overall budget, you can create special FM account assignments and enter negative budget values in them. The advantage of this is that the old budget remains valid, even though all of the data is not known when you are planning the budget.

This situation may occur if expenditures in the budget must be reduced, but it is not possible to determine which expenditure items can be decreased. It may be necessary to reduce the expenditure budget because a fall in revenue is expected or because tax revenues must be managed for other political organizations and passed onto the tax creditors.

The position management cannot process negative budget. This is important for customers who use components Funds Management Government and Position Management together .

Process Flow

If you want to enter negative budget values for certain FM account assignments, you must flag these FM account assignments, as they are subject to special budget consistency and availability control requirements. For more information, see Master Data for Negative Budget .

You enter the negative budget values. For more information, see: Entering Negative Budget .

During the course of the year the budget is used up through assigned funds. The budget manager can transfer post budget that is not needed for expenditures FM account assignments to FM account assignments with negative budget values. In this way he can clear these FM account assignments; that means that the negative values are brought back to zero. For more information on this, see Example: Global Expenditure Shortfalls .

The evaluation of negative budget values is possible with the help of various programs:

With the help of evaluation Annual budget: Totals records (RFFMTO50) can display all the FM account assignments with the indicator Negative Budget for the budget manager. The Free Accrual/Deferral are available for this – the indicator Negative Budget can be found in the area of FM account assignments.

To display balances from the positive and negative budget values in the info system, you must create them an alternative (commitment items) hierarchy variant. You can then evaluate the data with program RFFMALH.

If you want to display FM account assignments with negative budget hierarchically in a drilldown report, this report must be created with the report type hierarchy of the FM account assignment elements. Otherwise you cannot enter an alternative (commitment item) hierarchy variant.

Result

The budget originally planned in the overall budget is reduced with the help of negative budget values. On the one hand this prevents the inflation of budget values. On the other hand negative budget values can be used to map Global Expenditure Shortfalls and through this the budget execution has a more flexible structure.