Use

Multi-year budget execution requires period-based encumbrance tracking and an update profile with an update based on the posting date. This ensures that all business transactions and change documents have the correct amount and are logged with the relevant posting date (or period).

The absence of a commitment carryforward at the end of the year reduces the number of year-end closing activities; the automatic zero carryforward is no longer necessary.

Similarly, multi-year budget execution makes it easier to handle commitment bound to a budget.A carryover of the commitment budget is no longer required. A commitment posting can reference budget within a budget that was already entered in the previous fiscal year.

Integration

Opening/Closing Posting Periods

You can control different budget execution phases in a budget by opening/closing posting periods and restricting your selection of posting documents for each period. For example, you define in an earlier budget phase that both commitment and actual postings are allowed, in a later phase that only actual postings are allowed.

For more information, see Opening/Closing Posting Periods in Funds Management .

Payment Selection

With the payment selection (program RFFMS200), payments that refer to invoices from previous years are also converted with multi-year budget execution. A fiscal year change of invoices with the commitment carryforward is no longer necessary.

Activities

For more information on activating period-based encumbrance tracking and update profile settings, see Period-Based Encumbrance Tracking .

Example

The advantages of multi-year budget execution are made especially clear with document chains that cover a fiscal year change. Invoices can reduce commitment postings of the same fiscal year in a budget managed by a fiscal year. If the commitment is posted in the previous year, a commitment carryforward is required to generate postings with amount types Carry Over Previous Year (commitment) and Carry Over Following Year (commitment) . This closing operation is not necessary for multi-year budget execution – a document chain can be posted against a budget across several years. The differences are illustrated with this posting example.

In fiscal year 2003 (period 12), a purchase order of 1000 euro is posted. In period 1 of the following year 2004, the corresponding invoice is posted, however the amount has increased to 1050 euro:

Fixed-Year Budget (with commitment carryforward)

Multi-Year Budget Execution