Important Considerations

Consider the following for automated purchase orders carried forward:

• Reopen Budget Date
• Carry Forward Amount
• Projects Control Budget Impact
• EPM Control Budget Impact
• Budget Consumption of Carried Forward Transactions

Reopen Budget Date

The movement of the obligation to the Reopen Budget Date:

• Increases funds available in the carry forward from year because the obligation balance is decreased for the finally closed budget date. If you want to keep the funds available unchanged in the carry forward from year, select Keep fund available for the carry forward from year so that the budget balance is decreased for the finally close through budget date.
• Doesn’t validate that there are sufficient funds available in the carry forward to year. If you don’t include budget for the carry forward obligation for the reopen budget date, the purchase orders that were carried forward will consume funds from the current budget balance for that period.

Carry Forward Amount

The carry forward amount, which is the uninvoiced amount or the undelivered amount, is determined as of the time the Carry Forward Purchase Order Budgetary Control Balances program is submitted, not as of the finally close through budget date.

To ensure the balances are carried forward properly, it is important to follow these steps:

• Run the program as close to year end as possible.
• Not open the periods in the new year for payables until after the process is completed when using period end accrual and the default date rule setting as current transaction budget date or system date.

Projects Control Budget Impact

The budget balances for project control budgets are maintained in Projects Portfolio Management and synchronized to budgetary control using the baseline process.

Carry Forward Purchase Order Budgetary Control Balances process does not automatically update the budget balances for projects as the budget change must originate from the project budgets. A manual update and baseline of the project budget in Project Management can be made with the information from the Carry Forward Purchase Orders Report.

Project Expenditure Item date is maintained during the Carry Forward Purchase Order Budgetary Control Balances process, only the budget date on the purchase order distribution is updated by the process.

EPM Control Budget Impact

The budget balances for EPM control budgets are maintained and loaded from EPM.

The Carry Forward Purchase Order Budgetary Control Balances process does not automatically update the EPM budget balances and the budget change must originate from EPM. A budget revision with the funds reservation action can be made in EPM with the information from the Carry Forward Purchase Orders Report.

Budget Consumption of Carried Forward Transactions

If you didn’t include budget for the carried forward transactions, the transaction will consume funds available from your new budget.

You can increase the funds in the new budgets through reversals and cancellation of the carried forward transactions.

For the liquidation of carried forward transactions, the application will use one of the following dates depending on the Default Date Rule setting for the business unit:

• Prior related transaction budget date for which carried forward transactions has changed to the new budget date
• Current transaction budget date
• System date