Understanding Commitment Control Budget Closing and Withdrawal Without Closing

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 Inquiring and Reporting on Budget Closing Results.

     PeopleSoft Commitment Control Reports List and General Description

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 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 Validate Budget Close Run Control Page.

     See Budget Close Status Page.

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.

See Reopening Closed or Reinstating Reduced Commitment Control Budgets.

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.

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.

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).

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.