Carrying Forward Year-End Encumbrance and Budget Balances

You can carry forward year-end encumbrances into the following year. You can also carry forward budget amounts equal to encumbrances and/or funds available.

When you carry forward year-end encumbrances, the Carry Forward rule you specify determines the amounts to be carried forward. Note that General Ledger carries forward balances, not as period activity, but as beginning balances.

Caution: Because Carry Forward does not create journal entries, the balances brought forward cannot be reversed. Use caution in planning and executing this process.

You can choose from the following Carry Forward rules:

Encumbrances Only:General Ledger determines the year-to-date encumbrance balances as of the end of the fiscal year and carries forward those balances as the beginning balances of the first period of the next fiscal year.

Encumbrances and Encumbered Budget:General Ledger determines the year-to-date encumbrance balances as of the end of the fiscal year and carries forward those balances, plus equivalent budget amounts, as beginning balances of the first period of the next fiscal year.

Funds Available:General Ledger calculates funds available as year-to-date budget balances less year-to-date actual and encumbrance balances. General Ledger carries forward budget amounts equal to funds available at the end of the fiscal year as beginning balances of the first period of the next year.

Carry Forward rules 2 and 3 can be combined if you want to carry forward budget amounts equal to encumbrances plus funds available. Note that when combining these Carry Forward rules, they must be run consecutively in a specific order. First run Carry Forward rule 3, Funds Available, then rule 2, Encumbrances and Encumbered Budget. Otherwise, the budget amounts you carry forward will be understated.

The following table illustrates how balances are carried forward using the different Carry Forward rules:

	Budget	Actual	Encumbrance	Available
Balances, end of Year 1	1,000	700	200	100
Balances, beginning of Year 2:
Using Rule 1	0	0	200	(200)
Using Rule 2	200	0	200	0
Using Rule 3	100	0	0	100
Using Rule 3, then rule 2	300	0	200	100

You can generate a preview report to see the effects of a year-end carry forward before you actually initiate the carry forward process. If you do not carry forward encumbrance balances at the end of the fiscal year, all encumbrances automatically go to zero at the beginning of the next year.

You can execute year-end carry forward a number of times for different ranges of accounts and different encumbrance types.

Note: Keep a checklist as you execute the year-end carry forward. Perform carry forward for one fund at a time, or one encumbrance type at a time, and check off each fund or encumbrance type as you process it.

Prerequisites

Run receipt accruals in Oracle Purchasing.

Post all budget, actual, and encumbrance journal entries.

Close the last period of the fiscal year.

Open the first period of the next fiscal year.

Open the next encumbrance year.

Open the next budget year.

To carry forward year-end encumbrances:

Navigate to the Year-End Carry Forward window.

Select the ledger to carry forward year-end encumbrances.

Enter a General Ledger Carry Forward Rule.

If you are using the Encumbrances Only rule or the Encumbrances and Encumbered Budget rule, enter the Encumbrance Type you want to carry forward. Select ALL to carry forward amounts for all encumbrance types.

If you are using the Funds Available rule, enter the From Budget to use to determine the year-to-date funds available. This budget must include the From Period.

If you are using the Encumbrances and Encumbered Budget or the Funds Available rule, enter the To Budget for the carry forward. This budget must include the To Period.

Enter the Budget Organization for which to carry forward balances or ALL for all budget organizations.

If you choose ALL, General Ledger carries forward balances for all the accounts you enter in the Carry Forward Ranges region, regardless of the budget organization.

If you specify a budget organization other than ALL, General Ledger carries forward balances only for those accounts that are included in this budget organization and in the ranges you specify in the Carry Forward Ranges region.

Enter the From/To Period information.

General Ledger automatically defaults the From/To Period pair when the last period of the fiscal year for which you are carrying forward balances is Closed or Permanently Closed (From Period), and the period following the closed period is Open or Future Enterable (To Period).

The period that follows the closed period must also be in one of the following:

An open encumbrance year if you are using the Encumbrances Only, or the Encumbrances and Encumbered Budget rule.

An open budget year if you are using the Encumbrances and Encumbered Budget rule, or the Funds available rule.

If the carry forward periods meet these conditions, General Ledger defaults the earliest pair meeting this criteria; you can choose a period pair from a later fiscal year if all of the same conditions are met. General Ledger then calculates year-to-date amounts based on the From Period but does not update existing From Period balances.

Enter the Carry Forward account Ranges.

The values you enter need not be valid segment values. You cannot enter overlapping ranges of accounts.

General Ledger carries forward balances for only those accounts that are included in the ranges you enter and that are assigned to the budget organization you specify.

Choose Preview to print a preview report that shows the effects of the year-end carry forward before you initiate it.

Choose Carry Forward to initiate the carry forward process and to print an audit report.

General Ledger carries forward the encumbrance and budget balances into the beginning balance of the first period of the next fiscal year. General Ledger does not roll forward encumbrance and budget balances as period activity in the next month.



FRIDAY, 23 JANUARY 2009 14:12
Posted by Feroz Mohammed