Budget, Encumbrance and Funds Carry Forward Methods

Overview.............................................................................................................................2
Method 1: Encumbrances Only........................................................................................2
Method 2: Encumbrance and Encumbered Budget.......................................................3
Method 3: Funds Available...............................................................................................4
Method 4: Combination of Method 2 and Method 3......................................................5
Some Basic FAQs on Carry Forward:.............................................................................8
Overview
This documents explains the different methods used for year end carryforward of
Encumbrance, Budget and Fund Balance

Method 1: Encumbrances Only

At the End of the Year:

Screenshot showing the CarryForward criteria

Funds available Screen in the first period of the next year after the Carry Forward
Method 2: Encumbrance and Encumbered Budget
At the End of the Year:

Screenshot showing the CarryForward criteria

Funds available Screen in the first period of the next year after the Carry Forward
Method 3: Funds Available
At the End of the Year:

Screenshot showing the CarryForward criteria

Funds available Screen in the first period of the next year after the Carry Forward
Method 4: Combination of Method 2 and Method 3

At the End of the Year:

Screenshot showing the CarryForward criteria showing Method 2 Initally

Funds available Screen in the first period of the next year after the Carry Forward
After Method 2 has been done
Screenshot showing the Carryforward Criteria of Method 3

Screenshot showing Funds Inquiry at the first period of Next Year after both the methods
Have been done
Summarising:

Screenshot of the various Accounts before carryforward

Screenshot of the various Accounts after carryforward using different methods

Some Basic FAQs on Carry Forward:
a) Can Encumbrance carry forward be done more than once?

Ans: It depends on the method you choose.

a.1.If you carry forward encumbrances only or encumbrances and encumbered budget, it
will carry forward these balances only once.
a.2. If after carrying forward encumbrances or encumbrances and encumbered budget,
you posted additional transactions that have not been carried forward, and then run the
carry forward process, it will carry forward only those additional balances (once, as
before).
a.3.If you carry forward funds available (which essentially becomes a budget in the next
year), it will carry forward the same balances every time you run the carry forward
program. You therefore need to be careful not to repeat this process.

b) Can Encumbrance carry forward done a second time with a different rule?

Ans: If you made a mistake in the carry forward process, for example you carried forward
encumbrances only, and then remembered that you need to add the appropriate budget to
cover for those encumbrances, you will have to adjust the budget manually

c) What happens to the Incremental Transactions (new transactions) after the carry
forward is done?

Generally, it is advised that Carryforward should be the last activity of the Year.
However depending on the rule of carryforward, the issue differs. If you are using only
one rule, it should not be a problem. If you are combining two different rules, it may lead
to problems. It is advisable to pass manual adjustments in the new year

d) Does carryforward create a journal?

No, Carry forward does not create a Journal. It will only update the appropriate
gl_balances table.