Closing and Withdrawing Commitment Control Budgets

This section provides an overview and describes how to:

• Define ChartField value sets for budget closing.

• Define budget closing rules.

• Define budget period rules.

• Define and validate budget closing sets.

• Generate offsets for balanced budgets.

• Run and validate the Budget Close process to close and reopen budgets.

• Inquire and report on budget closing results.

• Withdraw or reduce commitment control budgets without closing.

Understanding Commitment Control Budget Closing and Withdrawal Without Closing

Budget closing in Oracle's PeopleSoft Enterprise Commitment Control is independent of fiscal year closing. Just as you can create budgets that span less or more than a fiscal year, you can keep a budget open for more than a year and close a budget at any time.

When the Budget Close COBOL process (FSPYCLOS) closes the budget ledger, it reverses the remaining available budget and marks the budget with a status of closed so that no additional transactions can pass a check against the budget.

When you set up your budget closing, you have the option to close only or to close and roll the remaining available budget balance forward to the new budget period or new fiscal year. If you choose to roll forward balances, you can also specify which ledger amounts (pre-encumbrance, encumbrance, expense, recognized revenue, or collected revenue) reduce the budget amount in the roll forward calculation.

Budget close and automatic withdrawal, or reduction of uncommitted and unobligated budgets, are related functionality and share common pages. Without closing a budget you can withdraw or reduce all uncommitted and unobligated budget amounts by using PeopleSoft reduction or withdrawal functionality and leave a budget at its then existing status. Although the processes are similar, they are sufficiently distinct that reduction of budgets without closing, or withdrawing of uncommitted funds is presented in a separate topic at the end of this chapter with links and references to common pages and functionality.

Note. The Funding Source feature is not supported by budget closing functionality.

See Withdrawing or Reducing Commitment Control Budgets Without Closing.

Budget closing involves:

• Setting up ChartField value sets, budget closing rules, budget period sets, and budget closing sets.

• Closing and reestablishing pre-encumbrances, encumbrances, or recognized revenues, if you so choose, by canceling and reestablishing the related source documents (such as requisitions and purchase orders) in their source applications (such as Purchasing).

• Validating the closing set and closing run request.

• Running the Budget Close process.

• Running reports and online inquiries that display closing results.

In this overview section, we discuss the overall budget closing procedure and elaborate on the following topics:

• Fiscal year closing as opposed to budget period closing.

• Closing and roll forward budget journal entries.

• Budget close status.

• Examples of budget close results.

Commitment Control Budget Closing Procedure

To close Commitment Control budgets, you perform the following tasks:

1. Define ChartField value sets.

   ChartField value sets are groupings of ChartField combinations (budgets) to which you want to apply the same closing rules. For example, you could create a ChartField value set that captures the sales department budgets that are funded by fund ABC, specifying in your closing rule that the value set is to be closed and the remaining available budget amounts rolled forward to the same department and fund for the new budget period. You could create another ChartField value set for sales department budgets that are funded by fund DEF, specifying in the closing rule that the value set is to be closed and the remaining available budget amounts rolled forward to fund GHK.

   You define ChartField value sets on the ChartField Value Set page.

   See Defining ChartField Value Sets for Budget Closing.

2. Define budget closing rules.

   Note. You define closing rules in the Define Closing Rule component.

   See Defining Budget Closing Rules.

   Budget closing rules define a group of budgets to close and the closing options for those budgets. A budget closing rule specifies:

   • ChartField value sets to close (from the source budget ledger).

   • Budget journal ID mask and entry event code.

   • Whether to roll forward remaining budget balances.

   • Whether to roll forward negative budget amounts (budget overages).

   • ChartField combinations to roll remaining balances forward to (to the target budget ledger).

   • Entry Event codes for budget closing journals (if you have Entry Events enabled).

3. Define budget period sets.

   Budget period sets define which budget periods should be closed. They can also be used to map budget periods in the year being closed to budget periods in the coming year. They enable you to roll forward remaining budget balances from closing budget periods to corresponding budget periods in the new year.

   You define budget period sets on the Budget Period Set page.

   You attach budget period sets to budget closing rules when you define your budget closing sets.

   See Defining Budget Period Sets.

4. Define budget closing sets.

   Budget closing sets combine budget period sets (or fiscal year for closing) and budget closing rules and apply them to the Commitment Control ledger groups (control budget definitions) that you want to close. This is also where you specify which ledger amount types (pre-encumbrances, encumbrances, expense, and so on) you want to apply toward calculating the remaining budget balance to roll forward.

   You select budget closing sets for closing when you run the Budget Close process. Together, all budget closing sets that you request for Budget Close should cover all of the budgets you want to close without including a budget more than once in a closing rule.

   You define budget closing sets on the Budget Closing Set page.

   See Defining and Validating Budget Closing Sets.

5. (Optional) Run the Closing Set Validation report (GLS1210) for each budget closing set. This report displays error or warning messages (depending on your requirements) for the following conditions:

   • There are budgets that appear in more than one closing rule.

   • The ledgers (amount types) specified for remaining balance calculation do not match those included in the available balance calculation for the Commitment Control ledger group.

   • There are parent budgets whose children are not all included.

   • There are child budgets whose parents are not included.

   • Entry events are required but not entered.

     See Running the Closing Set Validation Report (GLS1210).

6. (Optional) Cancel source documents for pre-encumbrances, encumbrances, and recognized revenue, if you intend to reestablish these in the roll forward budget.

   See Closing and Rolling Forward Pre-encumbrances, Encumbrances, and Recognized Revenue.

7. If you require the budget entries to be balanced, the Budget Processor (FS_BP) creates the offset entries using the offset account that you specified in the budget definition.

   See in this same chapter the topic “Generating Offset for Balanced Budget” ) that has links to Setting Up Basic Commitment Control Options and the topics Balancing Entries and Defining Offsets).

8. Create a Budget Close run control that includes all closing sets for all budgets you want to close and save without requesting the Budget Close process (FSPYCLOS).

   Specify:

   • Budget closing sets.

   • Business units to close.

   • As-of date for the closing.

   • Output options, such as whether to run a provisional close or the real thing.

     Create the budget closing run control on the Budget Close page.

     See Running and Validating the Budget Close Process to Close and Reopen Budgets.

9. Run the Closing Run Control Validation process (GLS1211) to validate that the closing sets on a run control for the Budget Close process are complete and do not overlap.

   Specifically, this validation process creates a report that displays error or warning messages (depending on your requirements) for the following conditions:

   • There are budgets that appear in more than one closing rule.

   • There are budgets in the Commitment Control ledger group that are not included in any of the budget rules.

   • The ledgers (amount types) specified for remaining balance calculation do not match those included in the available balance calculation for the Commitment Control ledger group.

   • There are parent budgets whose children are not all included.

   • There are child budgets whose parents are not included.

   • Parents are set to roll forward and children are not, or vice versa.

   • Not all associated budgets are included in the run control.

   • Some associated budgets are set to roll forward and some are not.

   • Some budget balances are not covered by any of the closing rules.

   • There are budget periods prior to the ones you are requesting to close that are not closed yet.

   • There is an open fiscal year prior to the one you are requesting to close.

   • Entry events are required but not entered.

     The process also updates the Budget Close Status.

     Note. You cannot run the Budget Close process without first running this process free of errors.

     See Validating the Budget Close Run Control.

     See Inquiring and Reporting on the Budget Close Status.

10. (Optional) Review the budget close status on the Closing Status inquiry page or the Budget Close Status Report (GLS1220) to confirm that the Closing Run Control Validation process marked all business unit, ledger group, and Ruleset combinations in the run control as Valid.

11. Run the Budget Close process, using a run control that returns no errors for the Closing Run Control Validation process.

    Request a run of the Budget Close process from the Budget Close page.

12. (Optional) Check the results of the Budget Close process on the Review Calculation Log page or the Budget Close Calculation Log report (GLS1222).

    See Inquiring and Reporting on Budget Closing Results.

13. (Optional) Reestablish pre-encumbrances and encumbrances (for expense budget ledger groups) or recognized revenue (for revenue budget ledger groups) in the roll forward budget.

    See Closing and Rolling Forward Pre-encumbrances, Encumbrances, and Recognized Revenue.

Note. You can undo a budget close.

See Reopening Closed or Reinstating Reduced Commitment Control Budgets.

Fiscal Year Close

If you want to perform a fiscal year-end close on a multiyear budget without closing the budget to future transactions, you can perform a fiscal year close by selecting Close Fiscal Year on the Budget Closing Set page. You perform this type of close to enable year-end reporting while keeping the multiyear budget open through to the end of its appropriation period. If you want to close budgets and perform a fiscal year close, select both options when you define the closing set.

Use the Balance Forward Option of Close Out and Balance Roll Forward for the budget closing rule. The Budget Close process zeroes out the budget balance for the closing fiscal year and rolls it forward to period 0 in the new fiscal year.

Budget Journal Entries from Closing and Roll Forward

Closing and roll forward entries are stored in the Budget Journal Header table (KK_BUDGET_HDR) and update the Commitment Control Ledger Data table (LEDGER_KK). Budget journal entries are identified by budget journal entry type, journal date (which determines fiscal year), and accounting period. These values depend on whether you are closing budgets, just closing the fiscal year for multiyear budgets, or closing both the budget and the fiscal year.

Closing Budget Periods

Closing entries are identified as follows:

• Budget journal entry type is Closing.

• Journal date is the as-of date for the Budget Close process request; the journal date determines the fiscal year and the accounting period on the entry.

Roll forward entries are identified as follows:

• Budget journal entry type is Roll Forward.

• Journal date is the as-of date for the Budget Close process request; the journal date determines the fiscal year and the accounting period on the entry.

Closing Fiscal Year or Closing Budget and Fiscal Year

Closing entries are identified as follows:

• Budget journal entry type is Closing.

• Journal date is the end date of the fiscal year being closed.

• Accounting period is 999.

Roll forward entries are identified as follows:

• Budget journal entry type is Roll Forward.

• Journal date is the begin date of the new fiscal year, which is defined as the closing fiscal year plus one.

• Accounting period is 0.

Budget Close Status

To provide a clear indicator of whether a budget has been closed by the Budget Close process or closed manually by the user, the Budget Close process marks the budget close status for the budget as Closed, while leaving the budget status unchanged.

In contrast to the budget close status, you can set the budget status manually on the Budget Definitions - Control Options page, the Budget Definitions -Budget Period Status page, the Budget Definitions - Control ChartField page, or the Budget Attributes page. When you set the budget status manually to Closed, you freeze the budget, allowing no transactions to be processed against the budget unless you set the status of the budget back to unclosed.

The budget close status, on the other hand, is set to close only by the Budget Closing process and cannot be reset other than through an undo of the close. No transactions of any kind can be processed against a budget that has been closed by the Budget Close process.

You can view the budget close status on the Budget Attributes - Set Options page, the Closing Status inquiry page.

Do not confuse the budget close status on the Budget Attribute page with the closing status for the Budget Close process, which tracks the status of the budget closing process. The Validate Run Control process (GLS1211) and the Budget Closing process update this status. You can review the status with either the Review Closing Status inquiry page or the Closing Status Report (GLS1220).

Note. When you set the budget status to Hold you freeze the budget as of that time and allow no new transactions to be processed against the budget except for transactions with predecessor documents already in the control budget ledger, such as a new voucher for existing purchase orders.

See Also

Inquiring and Reporting on the Budget Close Status

Examples of Budget Close Results

The way the Budget Close process calculates the budget balance forward amount depends on:

• The closing option selected in the budget closing rule.

• The ledgers included in the remaining balance calculation in the budget closing set.

To illustrate how this works, take as an example an expense Commitment Control ledger group that contains these balances: budget, pre-encumbrances, encumbrances, and expenses. Before the closing, the ledgers contain the following values:

Note. This and the examples that follow illustrate how budget closing works from a functional perspective. They do not represent the way budget data is actually stored in the LEDGER_KK and KK_BUDGET_HDR tables.

Each of these examples assumes that you include the budget, expense, encumbrance, and pre-encumbrance amounts in the Remaining Balance Calculation for the budget closing set.

Close Out Only Option

When you select this option, the Budget Close process closes only the budget ledger and reduces the budget by the remaining budget balance, leaving a remaining balance of zero. It does not calculate a balance forward amount. If you want to close out the pre-encumbrance and encumbrance ledgers, you need to cancel the related documents in the source applications before running the Budget Close process.

After you run the Budget Close process without rolling forward the balance and without canceling related pre-encumbrance and encumbrance documents, the ledger rows look like this:

Close Out, Balance Roll Forward, Do Not Cancel and Reestablish Pre-encumbrances or Encumbrances

If the budget period set for this closing consolidates the four quarters of the closing year to the first quarter of the new budget year, after closing, the ledgers look like this:

The remaining budget balance of 3500 (500 from Q3 and 3000 from Q4) is rolled forward from 2002 to 2003Q1.

Close Out, Balance Roll Forward, Cancel and Reestablish Pre-encumbrances and Encumbrances

Before running the budget close process, you zero out the pre-encumbrance and encumbrance balances for 2002 in the source application. After running the Budget Close process, you reestablish the pre-encumbrance and encumbrance balances in 2003Q1. The resulting 2002Q4 and 2003Q1 look like this:

Defining ChartField Value Sets for Budget Closing

When you define ChartField value sets, use the COMMITMENT ledger template so that Commitment Control ChartFields prompt in the Field Name drop-down list.

See Defining and Using ChartField Value Sets.

Defining Budget Closing Rules

To define budget closing rules, use the Budget Closing Rules component (KK_CLOSE_DEFN).

Closing rules define a group of budgets to close and the closing options for those budgets. You can define any number of closing rules for different contingencies. This section discusses how to:

• Define budget closing options, including rules for rolling forward available budget amounts.

• Define ChartField values to close and ChartField values to which available balance amounts roll forward.

Pages Used to Define Closing Rules

Defining Budget Closing Rule Options

Access the Closing Rule Options page.

Ledger Group for Prompting	Select the ledger group that determines which ChartField values you can select on the Close From/To page. Note. Ledger group for prompting does not determine the budget type to be closed. Budget types to be processed are specified on the budget closing set page.
Balance Forward Option	Select the closing option for this rule: Close Out and Bal Roll Forward (close out and balance roll forward): Select to close the Commitment Control budget and roll the remaining available budget balance forward to the new budget. Close Out Only: Select to close the budget only; the remaining available budget amount is forfeited.
Don’t Roll Forward if Expired or Closed	Select to prevent budgets from rolling forward to a budget period that exceeds their spending date range. This check box is unavailable if you select Close Out Only from the Balance Forward Option drop-down list.
Roll Forward Negative Remaining Balances	If the available budget balance is negative due to overspending or negative budget entries, you can elect to roll the negative balance amount forward to the new budget period. This check box is unavailable if you select Close Out Only from the Balance Forward Option drop-down list.
Journal ID Mask	Specify a prefix for naming closing journals. Journals are identified by a 10-character alphanumeric ID. The system automatically adds the prefix you specify to the journal IDs. For example, if you specify a journal ID mask of BC, your budget closing journal IDs might be BC00000001, BC00000002, and so on. Without a journal ID mask, General Ledger assigns the next available journal ID number automatically. This might make it difficult to identify budget closing journals. Note. Reserve a unique mask value for budget closing to ensure that no other process creates the same journal ID.
Entry Event	Enter the entry event code for the budget closing journals that is created using this closing rule. This field appears only if you have enabled entry events. If entry events are required for the Commitment Control ledger group, you must enter them. You can disable or require entry events for the Commitment Control ledger group on the Ledgers for a Unit - Commitment Control Options page.

See Setting Up Commitment Control for a Business Unit and General Ledger Ledger Group.

See Using Entry Events.

See Also

Budget Journal Entries from Closing and Roll Forward

Defining Budget Closing From and To ChartFields

Access the Close From/To page.

Note. No budget should appear in more than one ChartField value set. To avoid overlapping budgets, the ChartField value sets that you enter in the Values to Close group box should share the same ChartFields. They may have ChartFields in addition to those they share; for example, if one ChartField value set in a closing rule includes Department and Project, then another can include Department, Project, and Product. But if instead one ChartField value set includes Product and Project but not Department, the sets could overlap each other. The same is true for the ChartField value sets that you enter for each group number in the FROM/TO Exceptions scroll area.

Values to Close

Note. Do not include budget periods in your ChartField value sets for budget closing. The budget period to close selection criteria on the Budget Period Sets page determine budget periods to be closed.

See Defining ChartField Value Sets for Budget Closing.

See Defining Budget Period Sets.

Note. To update a ChartField value set by clicking this link, you must be in correct history mode for the Define Closing Rule component.

Send Balances TO

If you set the Balance Forward Option on the Define Closing Rule - Closing Options page to roll forward balances, specify how you want the closing balances to roll forward: to budgets that share the same ChartField values as the budgets being closed or to budgets with one or more different ChartField values.

Note. Leave this and subsequent sections blank if you selected Close Out Only in the Balance Forward Option field on the Closing Rule Options page.

FROM/TO Exceptions

Enter ChartField value sets for budgets whose roll forward options (as entered in Send Balances TO) are different from those of the ChartField value sets in the Values to Close From group box.

For example, on the sample Close From/To page, all ChartField values and therefore all budgets using this closing rule have their balances rolled forward to budgets with the same Account, Department, and Fund Code values, except those budgets covered in ChartField value sets DEPT_MANU_DIV, whose balances roll forward to budgets with Fund Code F100, and DEPT_ADMIN_DIV, whose balances roll forward to Department 14000.

Note. Ensure that your budget closing rules meet your parent-child requirements. Usually, if you close a parent budget, you must close its children. And usually you want the same budget closing rules to cover parents and children. If, however, you want parents to close and roll forward and children to close only, you can set up separate closing rules for parents and children. In that case, you usually want all of your closing rules to cover all children of all parents.

Generating Offsets for Balanced Budgets

If you require the budget entries to be balanced, the Budget Processor (FS_BP) creates the offset entries using the offset account that you specified in the budget definition.

You must choose the Entries Must Balance option on the Control Budget Options page, and enter a default account value for at least one setID in the Budget Entry Offsets grid. Also enter a budget transaction type offset account for each budget transaction type that affects this budget definition.

Offset entries can be identified in the budget ledger table by the offset account value that you specified and the KK_BUDG_TRANS_TYPE value. A budget transaction type value of 4 indicates offsets for closing entries and a value of 5 indicates offsets for roll forward entries.

See Defining Offsets.

See Balancing Entries.

Defining Budget Period Sets

To define budget period sets, use the Budget Period Transfer Set component (KK_BD_PERIOD_XFER).

This section discusses how to set up budget period sets. Budget period sets define which budget periods are to be processed. They also enable you to map budget periods in the year being closed to budget periods in the coming year.

Page Used to Define Budget Period Sets

Defining Budget Period Set Options

Access the Budget Period Set page.

Specify Target Budget Periods	Check if the remaining budgets are to be rolled forward to new budget periods.
Budget Periods to Close and Target Budget Period	Enter a unique row for each budget period to close for which you have budget amounts to be closed, and if roll forward is to occur, map each period to a target budget period. A from budget period can map to one target budget period, but a target budget period can map to any number of from budget periods. The budget period calendars must be the calendars used for the budget types to be closed.

See Also

Budget Period Calendars and Cumulative Budgeting

Defining and Validating Budget Closing Sets

Budget closing sets tie budget closing rules to Commitment Control ledger groups. They also enable you to:

• Select budget period sets to indicate the closing and roll forward budget periods, select fiscal year close, or select both.

• Specify which ledger amounts apply toward calculating the remaining budget balance to roll forward.

To define and validate budget closing sets, use the Budget Closing Set component (KK_CLOSING_SET).

This section discusses how to:

• Define a budget closing set.

• Run the Closing Set Validation report (GLS1210), which displays any errors in the closing set.

Pages Used to Define and Validate Budget Closing Sets

Defining Budget Closing Sets

Access the Budget Closing Set page.

Closing or Reducing Budgets

Period(s) to be Processed

You can select Close Budget or Close Fiscal Year without closing budgets, or both:

See Defining Budget Closing Rules.

See Defining Budget Period Sets.

See Fiscal Year Close.

See Budget Journal Entries from Closing and Roll Forward.

Closing Rules to Process

See Defining Budget Closing Rules.

Note. Do not enter closing rules with overlapping ChartField value sets. A budget must not be covered by more than one closing rule.

Budgets to Process

Note. Take care that your budget closing sets meet your parent to child requirements. Usually, if you close a parent budget, you must close its children. Therefore you must ensure that the closing sets you create cover all parents and children. Although you can close and roll forward a parent while only closing its children, you must roll forward a parent if its children are set to roll forward. Some parents include children from more than one Commitment Control ledger group (control budget definition). If you want all parents and children to be closed together, be sure that your closing sets either singly or together cover all child Commitment Control ledger groups for all parents. The Run Control Validation report (GLS1211) validates that no parents or children are missing from a closing process, that parents roll forward if children do, and that children roll forward if parents do. You can select whether or not to require that these conditions be met.

See Also

Validating the Budget Close Run Control

Parent and Child Budgets

Establishing Commitment Control Ledger Groups

Setting Up Commitment Control for a Business Unit and General Ledger Ledger Group

Running the Closing Set Validation Report (GLS1210)

Access the Validate Budget Closing Set report page.

For most of the conditions that the process validates, you can select the following validation options:

The following conditions are checked against the closing set:

See Establishing Commitment Control Ledger Groups.

See Also

Setting Up Commitment Control for a Business Unit and General Ledger Ledger Group

Using Entry Events

Running and Validating the Budget Close Process to Close and Reopen Budgets

This section discusses how to:

• Run the Budget Close COBOL process (FSPYCLOS) for the closing sets you have defined.

• Reopen closed budgets.

• Run the Closing Run Control Validation process to validate that the closing sets on a run control for the Budget Close process are complete and do not overlap.

Pages Used to Run and Validate the Budget Close Process

Requesting the Budget Close Process

Access the Budget Close Request page.

Note. You cannot run the Budget Close or reduction process until you have run an error-free Closing Run Control Validation process (GLS1211) for the run control ID. The report (GLS1211) validates that no parents or children are missing from a run control, that parents roll forward if children do, and that children roll forward if parents do. You can select whether or not to require that these conditions be met.

See Validating the Budget Close Run Control.

See Parent and Child Budgets.

See Reopening Closed or Reinstating Reduced Commitment Control Budgets.

See Inquiring and Reporting on Budget Closing Results.

Reopening Closed or Reinstating Reduced Commitment Control Budgets

To reopen closed budgets or reinstate reduced budgets:

1. Access the Budget Close request page, select Undo in the Request Type field, and click Undo List.

   The Mark for Undo page appears. This page displays a list of process instances for budget closing or reduction.

   You can also access the Mark for Undo page directly from the Commitment Control menu.

2. On the Mark for Undo page, select the process instances of the budget close or reduction process that you want to undo and save the page.

3. On the Budget Close request page, complete the run request.

   The system reopens budget rows that were closed, returns budget closing and roll forward amounts into the budget rows, removes any amounts that were rolled over to the next budget year, deletes budget closing journals, and removes the calculation logs that were created during the close process. The budget close status is set back to N.

   If you are reinstating reduced budgets, the system reverses the adjustments created and returns the balances to their original amount.

Validating the Budget Close Run Control

Access the Validate Budget Close Run Control page.

The Close Run Control Validation process performs validation checks across all closing sets in the run control. Because more than one closing set can apply to a ledger group, there is potential for such errors as overlapping closing rules across closing sets, which would not be identified by the Closing Set Validation report (GLS1210).

For most of the conditions that the process validates, you can select the following validation options.

The following conditions are checked against the run control.

See Establishing Commitment Control Ledger Groups.

See Also

Setting Up Commitment Control for a Business Unit and General Ledger Ledger Group

Using Entry Events

Closing and Rolling Forward Pre-encumbrances, Encumbrances, and Recognized Revenue

The Budget Close process (FSPYCLOS) closes only the budget ledger, not the other ledgers in the Commitment Control ledger group. And it carries forward only the remaining available budget amount, if you choose to have it carried forward, to the new budget period. It does not carry forward amounts from the other ledgers, such as encumbrances, pre-encumbrances, or recognized revenue. To close out and roll forward amounts from these ledgers, you must cancel and reestablish their source documents in the source applications.

Closing Out Pre-encumbrances and Encumbrances

To close out pre-encumbrances and encumbrances, you must liquidate the outstanding documents (such as requisitions and purchase orders) in the source application (such as Purchasing) before you run the Budget Close process. Purchasing provides the Requisition Reconciliation and Purchase Order Reconciliation processes to expedite this liquidation.

Reestablishing Pre-encumbrances and Encumbrances

Use the source application to reestablish closed pre-encumbrances and encumbrances in the new budget after you run the Budget Close process. Purchasing provides a PO Rollover process to assist you in reestablishing purchase orders. You must reestablish pre-encumbrance documents manually.

Closing Out and Reestablishing Recognized Revenue

To close out and reestablish recognized revenue in the new budget year, you must reverse the open receivables in the source application (such as Receivables or Billing) and post a new open receivable for the new budget.

See Also

Rolling Over Purchase Orders at Budget Period-End

Posting and Unposting Groups

Examples of Budget Close Results

Inquiring and Reporting on Budget Closing Results

After running the Budget Close process, you can view the process results by performing either of these tasks:

• Inquire and report on the budget closing calculation log.

• Inquire and report on the budget close status.

Pages Used to Inquire and Report on Budget Closing Results

Reviewing the Budget Close Calculation Log

Access the Budget Close Calculation Log page.

The Source option and the Target option are used to access the associated source or target rows in the calculation log. For example, when you click the Fetch button and you have selected the Target, the scroll is populated with the roll forward (target) amounts in the calculation log. You can then click one of the Source buttons that appears to access a secondary page to see the associated source budget rows stored in the calculation log and determine from where the target amount is coming. The same applies if you elect to display the source amounts first.

Inquiring and Reporting on the Budget Close Status

Access the Budget Close Status page for online inquiry.

Access the Budget Close Status Report page to request a report.

The closing process status can be one of these values:

Withdrawing or Reducing Commitment Control Budgets Without Closing

The functionality, which can also be termed Reduce Budget Without Closing, supports the reduction or withdrawing of uncommitted and unobligated budgets and is particularly applicable to United States Government accounting requirements to automatically withdraw all uncommitted and unobligated allotments and suballotments. This functionality can be used to reduce the budgetary amount equal to gross obligations so that the remaining balance is zero. The amounts that are automatically withdrawn can then be reallocated as necessary.

In PeopleSoft, appropriation, apportionment, allotment, and suballotment may be defined as distinct Commitment Control budget ledger groups that are related in a parent-and-child hierarchical structure. The following example illustrates a possible ledger group hierarchy and the associated key ChartFields:

• Appropriation ledger, with a key ChartField of Fund.

• Apportionment ledger, with a key ChartField of Fund.

• Allotment ledger, with key ChartFields of Fund and Dept ID.

• Suballotment ledger, with key ChartFields of Fund, Dept ID, and Class.

Without closing any of these budgets you can automatically withdraw or reduce all uncommitted and unobligated budget amounts, leaving the budget at its then existing status. By selecting the appropriate budget key values based on your established budget criteria, the system calculates the remaining budget balances. The system then generates Commitment Control budget adjustment journals by using Entry Event functionality to reduce any available budget to zero. The functionality is predicated on the following assumptions:

• The process executes on one Commitment Control ledger at a time, beginning with the lowest-level child budget ledger.

• The criteria for budget reduction are established by using business unit, ledger group, budget period, and ChartField values.

• Amounts that are to be reduced are remaining balances, that are uncommitted (pre-encumbrance), unobligated (encumbrance), and unexpended amounts.

• The process ignores budgets with negative balances.

• All budget statuses are ignored, such as hold and close.

• The process generates budget adjustments journals that reduce the balances for the selected budgets to zero.

• Entry event codes are configured for the related business units and automatically default to the budget adjustments based on the setup to perform the required accounting.

Setting Up for Budget Withdrawal or Reduction Without Closing

The Budget Close COBOL process (FSPYCLOS) also supports the Reduce Budget Without Closing functionality. The pages used, the required setup, and the reports produced are shared.

See Understanding Commitment Control Budget Closing and Withdrawal Without Closing.

To reduce or to withdraw uncommitted Commitment Control budgets do the following:

1. Define ChartField value sets.

   If you previously defined ChartField values sets for closing, you can use these, and the reduction process ignores roll forward related setup.

   You define ChartField value sets on the ChartField Value Set page.

   See Defining ChartField Value Sets for Budget Closing.

2. Define budget closing rules.

   Here you specify budget journal ID mask and entry event codes for budget reduction adjustment journals (if you have Entry Events enabled).

   You define closing rules on the Define Closing Rule component.

   See Defining Budget Closing Rules.

3. Define budget closing sets.

   Set the Purpose to Reduce Budget Without Closing and specify which ledger amount types (pre-encumbrances, encumbrances, expenses, and so on) are to be applied toward calculating the remaining budget balances to be reduced. You select budget closing sets when you run budget reduction. Specify all budgets that you want to close without including a budget more than once in a closing rule.

   You define budget closing sets on the Budget Closing Set page.

   See Defining Budget Closing Sets.

4. Run the Closing Set Validation report (GLS1210.)

   Run the report for each budget closing set to display (depending on your requirements) any error or warning messages for the following conditions:

   • Remaining balance calculation ledgers do not match the affect spending authority ledgers.

   • Closing rules overlapped on budget row coverage.

   • Child budgets are not in the closing set.

   • Parent budgets are not in the closing set.

   • Entry Event is required for the budget ledger, but is not specified in the rule.

     See Running the Closing Set Validation Report (GLS1210).

5. Create and save a Budget Close run control to be validated before running.

   Include all closing sets for all budgets that you want to reduce. You specify the following:

   • Budget closing sets.

   • Business units for the reduction.

   • As of date for the reduction.

   • Output options, such as whether to generate a log file.

     Create the budget closing, or reduction run control on the Budget Close page.

     See Running and Validating the Budget Close Process to Close and Reopen Budgets.

6. Run the Closing Run Control Validation process (GLS1211).

   Use the report to validate that the closing sets on the run control for the Budget Close process that you created are complete and do not overlap. Specifically, this validation process creates a report that displays error or warning messages (depending on your requirements) for the following conditions:

   • Remaining Balance Calculation ledgers do not match the Affect Spending Authority ledgers.

   • Closing rules overlapped on budget row coverage.

   • Child budgets are not in the closing set.

   • Parent budgets are not in the closing set.

   • Not all Associated Budgets are included in the closing set.

   • Some budget balances are not covered by any of the closing rules.

   • Entry Event is required for the budget ledger but is not specified in the rule.

     Note. You cannot run the Budget Close process without first running this report free of errors.

     See Validating the Budget Close Run Control.

7. Review the budget close status on the Closing Status inquiry page or the Budget Close Status Report (GLS1220) to confirm that the Closing Run Control Validation process marked all business unit, ledger group, and Ruleset combinations in the run control as Valid.

8. Run the Budget Close process using a run control that returns no errors for the Closing Run Control Validation process.

   Run the Budget Close process from the Budget Close page.

9. Check the results of the Budget Close process on the Review Calculation Log page or the Budget Close Calculation Log report (GLS1222); check to see that the balance of selected budgets is zero.

   See Inquiring and Reporting on Budget Closing Results.

10. You can undo a budget reduction or withdrawal just as you can a budget close.

    See Reopening Closed or Reinstating Reduced Commitment Control Budgets.

11. If you undo the reduction process, validate the results by using the calculation log report and the budget status report to see that the balances are reinstated.