Commitment Carryforward for Annual Budgets in MYB system

[Former Member]

My client is activating Multi-year budgeting. With it on, you can no longer carry forward commitments at all - including for those Funds with Fund Types identified as "Annual". This causes a problem for those Annual Funds, which operate on an annual budgetary basis. For those Annual Funds, any commitments used in the new fiscal year must consume budget in the new year. How can we do this if commitment carryforward isn't allowed for all - including Annual Funds?

[Former Member]

Thanks, Eli. We took a step back to reconsider things. We're going to hold off on the MYB for awhile. Thanks, again, for you help on this.

[iklovski]

Hi,

What do you mean by 'activating multi-annual budget'? Is the system operational? If 'yes', then it is not just about a switch of the flag.

As for annual funds, did you set the horizon for AVC control, based on fund source master data?

Regards,

Eli

[Former Member]

Thanks for the response, Eli. We actvated MYB and set up "Annual"/"Overall" Fund Types. I looked at the checking horizon config and saw that by leaving that undone, the default setting for AVC was to go by the Fund master data, which is what we want. The testing has confirmed that, too. Our Annual Funds are being controlled by AVC on an annual basis (and are displayed on the FMAVCR01 report). Our MYB Funds are being controlled on the "Overall" basis (and are displayed on the FMAVCR02 report). This is exactly what we're looking for.

That aspect has worked for us. The only issue we've had is what happens at year-end regarding budget consumption for "Annual" funds pertaining to commitments:

• Commitments for "Overall" Funds will be available in the new year with no effect on budget, since it is not on an annual basis. This is perfect.
• Commitment for "Annual" Funds are available in the new year as well. We have the intent to close down those POs that should not be available in the next year. For those that are allowed to be used in the new year, they need to consume the new year's budget. Since we are unable to use FMJ2 to carry forward those commitment for "Annual" funding (which consumes the following year's budget), they will continue to operate on the budget consumed in the prior year. How can we have existing commitments consume the new year's budget for "Annual" Fund

[iklovski]

Do you mean if you increase those commitments? Because, on-going commitments are not supposed to consume anything. Well, for increased commitment if they are assigned to a fund source which is managed on annual level, you should post the increase with a different FM posting date. Therefore, for POs it should be based on delivery date and not on posting data; otherwise, you won't be able to distinguish between the year. When a posting date in FM is in year X+1, the system will check existence of the budget in this particular year, if AVC is working with the horizon based on funds' master data.

[Former Member]

It wouldn't involve an increase in the commitment - we just need the amount of that open PO that continues onto the new fiscal year to consume budget (for those Funds with Fund Types flagged as "Annual").

It's as if we'd like to, theoretically, use FMJ2 to move the PO into the new year for the sole purpose of consuming the new year's budget (for those "Annual" funds).

Without the FMJ2 available once MYB is active, it looks like our option would be to manually close those open PO line items in the current fiscal year and create new ones in the new year for "Annual" funds (not to make the commitment available for follow-on posting - but for the sole purpose of consuming the new year's budget). Is there another option to consume the next year's budget for those "Annual"-specific PO line items, since FMJ2 isn't available?

Thanks for the help.

[Former Member]

Per your prior reply, you're absolutely right about the checking horizon. Thank you. Due to my user error while testing, I didn't see the problem there. That leads me to a follow-on question: Is it possible to set the checking horizon (deriving annual vs overall) without having the MYB functionality turned on? Is it that the purpose of the MYB switch is to make the commitments fiscal year-independent and the purpose of the checking horizon in AVC is to manage the budget control on an annual vs overall basis? Can you do one without the other? Just taking a shot in the dark.

[iklovski]

That's a bit strange requirement. If the budget is consumed in year X, why would it be consumed once more in year X+1?

Closing commitment is of course an option, but I wonder if it is feasible from procedural perspective as PO represents a binding contract and its closure and re-opening could be opposed by business.

Other option could be reassignment of commitments in a sense that you will have two sets of fund source: for original year and for the next one. Then, by reassigning you would be consuming budget of next year.

[iklovski]

No, checking horizon becomes operational only under multi-annual regime.

[Former Member]

You're right. The business does oppose re-creating those POs.

The perspective for them is that the PO just ran out of time. It will continue to be executed in the new year, but in order to follow through, they need to consume budget in the new year (where the financial follow-on postings will occur). They want to reduce the commitment in the new year and consume budget in the new year - just like the FMJ2. The functionality of FMJ2 would just be the nice way to apply the POs to the new year without having to manually re-create.

Would reassignment (FMCCOVR) post into the new year? I've been unable to get it to select any open items, but I'm debugging to see what I'm missing.

[iklovski]

Reassignment will not post it to new year, but you can play with your FM objects. For example, you have a fund source Y1, which is budgeted in year 2017. You have PO consuming this budget, which remains open. Then, you can budget fund source Y2, which would represent the budget for commitments from previous year and make the reassignment to it. You can also make a program which would scan these reassignments and transfer the budget from Y1 to Y2 accordingly. Would be even more proper to use FM object 'budget period' for this purpose.