Budgeting Using Multi-Annual Documents

Purpose

Multi-annual budgeting refers to the creation of a budget that is consumed over several years. It is carried out using the year of cash effectivityand can be used for BCS cover eligibility .

You create this budget by creating documents in the Budgeting Workbench . These documents are posted in the current fiscal year, however, they apply to different years of cash effectivity .

Note that this functionality has been developed for Spanish customers and is to be used in the context of BCS Availability Control .

Note Note

You can only use one budget category (payment or commitment budget) for multi-annual documents.

End of the note.

Prerequisites

In order to use multi-annual budgeting you must first:

Maintain the corresponding budget categories and the year of cash effectivity (YCE) in the IMG activity Choose Budget Category .
Read the corresponding IMG documentation under Funds Management Government Budget Control System (BCS) Availability Control Other Settings for Availability Control Settings for Multi-Annual Budgeting. From this documentation, you can access the following three BAdI implementations:
1. BAdI to create additional lines for AVC checks
2. BAdI to enhance the filter settings for AVC
3. BAdI used for checks on budget entry documents and line items under the Customizing menu Budgeting Tools Enhance checks and document postings. This BAdI also enables you to post data in applications other than BCS.
Read the documentation on the BAdI implementations and then copy the sample coding for the implementation into an implementation of your own. Each sample implementation also contains specific documentation, which you should also read (Menu Document Class ).
Maintain the budget options, standard percentages and time horizon for percentages , to be used together with the YCE, in Customizing under Funds Management Government Budget Control System (BCS) Availability Control Other Settings for Availability Control Settings for Multi-Annual Budgeting.

Process Flow

Once you have carried out the proper Customizing and implemented the three Business Add-Ins, which are accessed from the IMG activity Settings for Multi-Annual Budgeting , you can carry out multi-annual budgeting as follows:

The budgets for the first N (defined as time horizon) years following the current one are calculated at the cover group level, as a percentage of the current year’s budget. Note that you cannot manually enter these budgets in the Budgeting Workbench . Instead, they are created automatically and only updated during Availability Control. These budgets are not updated in budgeting tables.
The budgets for the future years beyond N can be created using fixed value amounts only for “multi-annual” budget addresses. Whether a budget address is defined as “multi-annual” depends on whether the No Future Budget indicator in the commitment item master data has been checkmarked in the Tab Basic Data 2 : Note that if this indicator is checkmarked, you cannot use multi-annual budgeting.
In the Budgeting Workbench, you can only make manual entries for the current year and for the future years beyond N if you have maintained multi-annual budget addresses in the master data of the corresponding FM account assignments (see above). The manual entries are updated in both the budgeting and the AVC tables. You can assign the percentage values used for calculation at the cover group level.

Moreover, the budget of the current fiscal year, which is used as the basis for calculation, depends on the budget option selected in the IMG activity Settings for Multi-Annual Budgeting :

Original budget, created only with budgeting process “Enter”
Current budget, created with other budgeting processes, such as “Enter” plus “Supplement”, “Return”, “Transfer” and “Carryover”

Using the first option, only the original budget of the current fiscal year is considered as the basis of the calculated budgets, meaning that only budgets with the process “Enter” are considered .

Using the second option, the actual budget of the current fiscal year is considered as the basis of the calculated budget, meaning that all budgets created by all processes are taken into consideration.

Result

You are able to use multi-annual budgeting in your organization.

Example

You want to use multi-annual budgeting with the following master data:

“A” is the multi-annual budget address.
“B” is the normal budget address.

“C” is then defined as the cover group containing both “A” and “B”.

The years of cash effectivity are then defined as follows:

Year	Budget on “A”		Budget on “B”	Budget in Cover Group “C”
	ENTER	SUPPL	ENTER	ORIGINALBUDGET	CURRENTBUDGET
2005	100 Euros	150 Euros	200 Euros	450 Euros	450 Euros
2006	-	-	-	70% (100+200)	70% (100+150+200)
2007	-	-	-	60% (100+200)	60% (100+150+200)
2008	-	-	-	50% (100+200)	50% (100+150+200)
2009	-	-	-	50% (100+200)	50% (100+150+200)
2010	20 Euros	-	-	20 Euros	20 Euros

Depending on the option you select, the percentage calculations include the sum of the actual/original budget in the current year for all budget addresses (whether multi-annual or not) contained in the same cover group.