Overview of Budget End Process

At the end of the budget cycle, you must define control budget for the next budget cycle and review surplus funds and open transactions to determine if they will be carried forward to the next budget cycle.

The regulations for handling the obligated or surplus funds vary by jurisdiction.

For example, surplus funds could lapse or be carried forward for consumption in the next budget. Transactions that have obligated funds but not yet invoiced could be carried forward, canceled, or the books could be left open until the expected invoice is received.

These are the main steps to determine how to process surplus funds and open transactions.

• Determine accounts and transactions that should not be carried forward
• Determine if surplus funds to carry forward
• Run Carry Forward processes
• Review impacts of the carry forward
• Process Encumbrance Balances: Applicable only if you’re using encumbrance accounting

The configuration of the control budget impacts the budget end processing and how to view prior year data.