Budget Closing Operations 

Purpose

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

Budget for commitments

If you have carried forward open commitments into the new year, the budget assigned in the old new 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 the commitments into 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

- Assigned budget

- Budget still to be carried forward from commitments carryforward

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= Residual budget

Negative residual budget

Residual budgets can become negative if the assigned budget and the budget to be carried forward from the commitment carryforward exceed the current budget. The negative residual budget carryforward then debits the new year’s budget; it functions as an advance on the next year’s budget.

Negative residual budgets can for example arise as follows: You are working with a fund and annual values. The fund was not budgeted, but the commitment values or actual values for this fund exists due to the settings for the tolerance limits. The following year’s budget is then debited accordingly during budget carryforward.

Residual revenue budget

If you have budgeted expected revenues the actual revenues can be at variance with your standard values. If the actual revenues are smaller than your standard values you can carry forward this "error amount" into the new year as residual budget.

Carryforward parameters and rules

You can control process of residual budgets in a differentiated way via the definition of carryforward parameters and rules.

Prerequisites

Note that you can only execute a budget carryforward if it is specified in the Funds Management Customizing, in the default settings for the year-end operations, that the budget carryforward is allowed. For more information see Funds Management IMG, section Enter Default Settings. Using program RFFMCFM1 you can get an overview of the current Customizing settings.

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

If you are using the function "Revenues increasing the budget (distribution procedure)", you must use program RFFMUD01 to execute the budget increase. See Execute Budget Increase for more information.

Process Flow

Process flow residual budget

  1. Maintain Carryforward Parameters and assign these to the desired value types in Funds Management Customizing under Additional functions ® Budget closing operations ® Settings for residual budgets carryforward payment budget/commitment budget.
  2. Maintain Carryforward Rules
  3. Prepare Budget Carryforward (BPINDX05).
  4. Determine Budget Carryforward (RFFMCF25)
  5. Carry Forward Budget to the Following Year (RFFMCF30).

You should only execute steps 1-2 if you want to work with carryforward rules.

You must carry out steps 2-3 together to ensure that the carryforwards are based on the most up-to-date data.

Flow of budget to commitments

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.

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 within the hierarchy. You find further information in the Funds Management IMG in the section Specify Behavior of the Availability Control in the Hierarchy