Funding End Dates and Multiyear Encumbrances

In PeopleSoft Human Resources, you set up budgets for fiscal years. However, you generate encumbrances through the funding end dates that you specify. You can specify funding end dates at all budget levels.

Funding End Date Processing

Using a funding end date that is not tied to the fiscal year enables you to create encumbrances and pre-encumbrances for the entire length of a funding source, even when that time frame stops before the end of the fiscal year or extends into subsequent fiscal years.

When creating multiyear encumbrances, the system generates separate accounting line entries for each fiscal year. If you are not using commitment control, the accounting posting date that you enter when you run the Encumbrance GL Interface process is used as the budget date for both current and future fiscal year entries. If you are using commitment control, the begin date of next pay period is used as the budget date for current fiscal year entries, and the fiscal year begin date is used as the budget date for subsequent fiscal years entries.

If you do not specify a funding end date for a particular funding source, the system creates encumbrances only through the end of the current fiscal year. The funding source does not specifically expire at the end of the year, and it will continue to be available for subsequent fiscal years when you build the budget using the Copy Prior Fiscal Year Budget Process.

Note:

To create encumbrances for future fiscal years, you must specify a funding end date that is beyond the current fiscal year.

Encumbrance definitions, where you specify the percent of earnings to encumber for taxes and deductions, also have a funding end date. For the current fiscal year, fringe encumbrances can extend beyond the funding end date of the earnings on which they are based. However, for future fiscal years, fringe encumbrances are not created beyond the funding end date for earnings, even if the encumbrance definition has a later funding end date than the earnings on which the fringe encumbrances are based.

Default Funding End Date

You can optionally set up a default funding end date for the funding source (that is, for a particular combination code). In the Department Budget Table component, you use the Funding End Date Defaults From Funding Source indicator to indicate whether the system should populate funding end dates using the default for the funding source. The default is applied at all department budget funding levels and in encumbrance definitions, though you can override it as needed.

This is how the system applies the default funding end date when you create your budget using an automated process:

• Option 1: Data Import from Budgets: This process looks up the department's Funding End Date Defaults from Funding Source setting from the prior fiscal year. If the check box is selected, then the process uses the default funding end date.

• Option 2: Build Current FY Budget: If you have defined funding end dates for at least one funding source, this process sets the Funding End Date Defaults From Funding Source indicator to yes for all budget levels, then uses the default funding end dates for all funding sources that have them.

• Option 3: Copy Prior Fiscal Year Budget: This process sets funding end dates based on both the default funding end date for the funding source and on the funding end dates in the prior year budget:

  • The process does not copy prior fiscal year rows where the funding end date is earlier than or the same as the last day of the prior fiscal year.

  • In prior fiscal year rows where the funding end date is later than the last day of the prior fiscal year, the process keeps the same funding end dates in the new fiscal year budget.

  • In rows where no funding end date is specified for the prior fiscal year, the process checks the Funding End Date Defaults From Funding Source indicator to determine whether to use the default funding end date for the funding source or create the row with no funding end date.