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.