Additional Revenues Entitle to Additional Expenditure

Scenario

A municipality maintains a swimming pool for which it provides 100,000 EUR in the budget plan for maintenance costs. On the revenue side is the sum of 100,000 EUR from entrance fees. In good summers the number of visitors usually goes up. This leads to more revenue on the one hand from entrance fees but on the other hand to higher maintenance costs and higher purchasing costs from the amount of extra disinfectant used.

Objective

There is no original budget available for the increased maintenance costs on the expenditure FM account assignment. However, as these additional expenditures are counteracted by additional revenues, the amount of additional expenditures approved when the budget plan is passed should be the same as the additional revenues received.

Prerequisites

In the Customizing of Funds Management Government, a budget memo must have been created with budget memo type Additional Revenues Entitle to Additional Expenditures (01).

For more information on creating budget memos, see the Implementation Guide (IMG) for Funds Management Government in the Create Budget Memo section.

Furthermore, the respective prerequisites for the procedure (calling procedure, distribution procedure 1 or 2) apply to the revenues increasing the budget that you use.

Solution

So that only revenues above the 100,000 EUR mark can be spent from the entrance fee money received, the revenue FM account assignment (commitment item, entrance money) on which the revenues are posted are treated as revenues increasing the budget in the system. In the master data maintenance, assign the expenditure FM account assignment (commitment item: maintenance costs) to this revenue FM account assignment. Then define a revenue and expenditure budget memo for the budget memo type Additional Revenues Entitle to Additional expenditures (01).

Define the following interval in the rule maintenance:

Minimum revenue: 100,000, in other words, a revenue on this FM account assignment first increases the budget once the 100,000 EUR mark has been reached.

Upper limit: None; this ensures that the revenues that the amount of 100,000 EUR displayed in the budget plan can be used in full.

On the expenditure FM account assignment (commitment item: maintenance costs), original budget is entered in the amount that the maintenance costs cover in an average summer, so 100,000 EUR.

During the summer, the budget designated for maintenance costs through different business transactions or payment requests, purchase orders or funds reservations is gradually consumed. When the business transaction is posted, the program checks whether there are still enough funds on the expenditure FM account assignment. If the current budget has been consumed, the program checks whether more budget is available on the assigned revenue FM account assignment from additional revenues. If this is the case, this budget is then used by the expenditure FM account assignment.