1. Using U.S. Federal Financials
  2. Purchase Order Obligation Balances Carry Forward

Purchase Order Obligation Balances Carry Forward

During the year-end close process, all open purchase orders, except those associated with a canceled TAS, must be updated with a budget date in the new fiscal year.

During year-end close, the automated Carry Forward Purchase Order Budgetary Control Balances process is used to roll forward all open purchase orders, excluding those associated with a canceled TAS, by assigning a budget date in the new fiscal year. When the process runs, no accounting or budgetary control updates are generated, ensuring that it only makes the budget date change needed for the new fiscal year while preserving the integrity of all existing encumbrance, obligation, and budget balances.

Note: It’s recommended that you run the Carry Forward Purchase Order Budgetary Control Balances process on or after the first day of the new fiscal year.

These are the steps that the Carry Forward PO Budgetary Control Balances process performs:

  • Finally closes open purchase orders for a specific ledger using the date defined by the Budgetary Control Default Date Rule configuration.

  • Reopens POs with the date specified by the user in the process parameters.

    Note: Budget period must be open for both the final close and reopen budget dates.

  • Optionally carries forward budget for the purchase order balance based on the parameter Include budget for purchase orders in the carry forward to year.

  • Lists the carry forward purchase orders and budget details.

Considerations for Carrying Forward Purchase Order Obligation Balances

To meet federal year-end requirements and ensure that no accounting is generated for the purchases orders that are rolled over to a new fiscal year, there are considerations that you need to keep in mind.

  • Ensure that the Default Date Rule configuration on the Budgetary Control page is set to System date. This ensures that the required federal accounting entries are generated in the correct accounting period.

  • Deselect the following parameters for the Carry Forward PO Budgetary Control Balances process to ensure that purchase orders don’t update the funds available and the budget in the current or new fiscal year:

    • Keep funds available unchanged in the carry forward from year

    • Include budget for purchase orders in the carry forward to year

The following table lists the available parameters for the Carry Forward Purchase Order Budgetary Control Balances process and the recommended settings for U.S. Federal year-end purchase orders:

Parameter Description Recommended Setting

Finally Close Through Budget Date

Carries forward all the open purchase order shipments with a budget date up to this date.

Set this parameter to the last day of the fiscal year being closed, for example, 9/30/24.

Reopen Budget Date

Moves the purchase order shipments that are carried forward to this new budget date.

Set this parameter to the first day of the fiscal year being opened, for example, 10/1/24.

Keep funds available unchanged in the carry forward from year

Reduces budget in the carry forward from year when the process is run in the final mode.

Deselect this parameter.

Include budget for purchase orders in the carry forward to year

Creates budget for the purchase order obligation amounts carried forward when the process is run in the final mode.

Deselect this parameter.