Carrying forward budget commitments & residual budgets

[atif_farooq]

Hi:

I have a query regarding carrying forward budget commitments and residual budgets.

Carrying forward budget commitments:

There are purchase orders which at year end whose GRN has not been done and will be done in coming year . Funds have been committed on those and these commitment needs to be carried forward to next year. Carrying forward will be done but i have a query client does not carry forward residual budgets. My question here for a PO created on say 29th June (year ends at 30th June), now if its GRN is done on 28th July (new year) will the budget of new new year be consumed or budget of previous year will be exhausted. Note :Client does not carry forward residual budgets

Carrying forwards residual budgets:

Residual budgets are not carried forward by client but for projects they do carry forward residual budgets along with their commitments. Is there any unforeseen issue in carrying residual budget and commitment for some specific fund centers ?

Please guide me

Regards

[Former Member]

Hi Atif

Regarding point no 1 When you are carry forwarding open PO commitments to next fiscal year, already committed (consumed ) amount got reduced in old fiscal year (as your case 2012 June) budget and the same amount will be added in the next fiscal year budget (in your case July 2012 ), It means old fiscal year committed amount carryforwarded to new fiscal year.  If you are not done open PO commitments carry forward to next fiscal year then at the time of GRN budget will be consumed in the new fiscla year budget only.

Regarding point no 2: As far as I know residual budget carry forward option is depends on the business requirement and process only whether they want to carry forward to new fiscal year or they want to close the budget in the last year itself.

Regards

Rao

[atif_farooq]

Hi Rao:

I did not get your third line what to you mean by "budget and the same amount will be added in the next fiscal year budget (in your case July 2012 ) " . Can you please elaborate ?

Regards

[Former Member]

Hi Atif

Carry forward open PO committment amount got reduced from old fiscal year consumable and consumed budget and other side it will be increased in the new fiscal year consumable and consumed budget.

For Example:

Open PO commitment amount is Rs. 100000

Now in this scenario budget available report 2011  fiscal year (2012 June) (FMAVCR01 - Overview of Annual Values) shows as

Consumable Amt is 100000

Consumed Amt 100000

Available is : Nil

after performed the open PO commitment carry forward (FMJ2)

Budget Report 2011 Shows as

Consumable Amt is: 0

Consumed Amt 0

Available is : 0

But 2012 Budget report shows (2012 July)

Consumable Amt is 100000

Consumed Amt 100000

Available is : Nil

Hope u understand the scenario. Let me know if any.

Regards

Rao

[iklovski · Accepted solution]

Hi Atif,

When you carry-forward commitment you can take the budget with it (setting in customization), thus no new consumption will be generated in year N+1. Also, keep in mind, that technically carry-forward is necessary only if you use PBET.

Regards,

Eli

[atif_farooq]

HI Eli:

For the budgetable commitment items with category 30/3 , we will be carrying forward their commitment not the Residual Budget, now is it required to maintain carry fwd item category in FMCIA for budgetable commitment items and if we do not maintain this category then commitments will not be carried forward..right ?. If i make it required entry in FMCIA then whats the use of assigning carry fwd category to the non budgetable commitment items ?

Regards

[iklovski]

No, carry-froward category has no impact on carry-forward as such. This field just allows you to manage your carry-forward, but the absence of value in this field won't prevent carry-forward.

But, once more: when you carry-forward the commitment you have an option to take the budget with it. In this case, the commitment won't consume any of N+1 budget, but carry its budget to the next year like a snail.

[atif_farooq]

Hi Eli:

I went through SAP Help for define carryforward item category in customizing , it says

If you work with funds and have allotted budget across fiscal years, the fund balance carried forward allows a period-specific overview of the fund balances in Funds Management.

In this IMG activity, you specify the carryforward commitment item category for the balance carried forward and subsequently assign this to the carryforward commitment items.

• If you have defined these settings for the balance carryforward (under Prerequisites), the balances of all commitment items which have the same carryforward item category are cumulated and carried forward to the carryforward commitment item assigned to the carryforward commitment item category in the new year.
• If you do not define these settings, the balances are not carried forward (error message "no carry forward item category is entered in the commitment item ..") unless multi-year budget execution is activated in the FM area. If this is the case, the balances are carried forward to the new year without a change of account assignment.

What does above paragraph stands for ?

Regards

[iklovski]

It refers to 'fund balance' carry-forward. It's a specific functionality and it's not related to commitment carry-forward executed via FMJ2. Fund balances are useful when you have overall budget on funds and you still want to have year overview on it.

[atif_farooq]

Hi:

We will be budgeting with a combination of Funds/FC/CI, so i guess in our scenario it is not required to maintain carryforward category. Thanks

Regards

[iklovski]

Exactly