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:
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Current budget |
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Assigned budget |
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Budget from commitment carryforward still to be carried forward |
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Residual budget |
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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.
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. 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 the processing of residual budgets in a differentiated way via the definition of carryforward parameters and rules.
Prerequisites
Note that you can only execute a commitments carryforward if it is specified in the Funds Management Government Customizing, in the default settings for the year-end operations, that the commitments carryforward is allowed. For more information see the Funds Management Government IMG in 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 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 the appropriate program to execute the budget increase. For more information, see
Execute Budget Increase.Process Flow
Process flow residual budget
In order to transfer residual budget, you execute the following steps:
Create carryforward parameters in Customizing of Funds Management in the step Define Carryforward Parameters. Then assign the value type you want to your FM area and a fiscal year in the step Settings for Carryforward of Residual Budget Payment Budget/Commitment Budget.
Maintain Carryforward Rules Prepare budget carryforward (BPINDX05) Determine budget carryforward (RFFMCF25) Carrying 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 3-4 together to ensure that the carryforwards are based on the most up-to-date data.
Budget for Commitments 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.
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 can find further information in the Funds Management Government IMG in the section Define behavior of the Av.Control in the Hierarchy