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Meaning
The budget period is a required master data that describes the time dimension of your budget. You can define it with a frequency of the following:
- 1-Year
- Multi-Year
- Overall
It is linked to funds using the same frequency. For example, if the budget period frequency is yearly then it can only be used in combination with funds that have the same yearly frequency. Overall budget periods are commonly used for continuous, non-time-bound budgets, and external grant budget. For further information, refer to Unit 2, Lesson 1, Describing the Available Budget Management Master Data Objects and their Use, and Unit 2, Lesson 2, Explaining Account Assignment Derivation.
The yearly budget periods need to be distinguished from the fiscal year.
Fiscal Period
- Satisfies yearly, quarterly, and monthly financial reporting
- Always derived from the posting date
- On the document header level
- Financial period control on a monthly level
Budget Period
- Budget appropriation year
- Equates to the frequency of funds (overall, yearly, bi-yearly, and so on)
- Account assignment on line item level
- Pre-populated from the budget consumption date and inherited from the successor document within a document chain
- The budget period has three dates; valid-from date, expiration date, valid-to date. The valid-from date needs to align with a start (first day) of a fiscal year. The expiration and valid-to date need to align with the end (last day) of a fiscal year. In between these dates, budget periods are open or expired
- When the budget period is not existing or closed, it is not possible to post any budget, commitments, and actual documents
- When the budget period is open there are no restrictions regarding postings
- Expired period handling is described separately
Overlaps are currently not allowed within same frequency.
Expired Budget Period Handling
Within the fund type it can be configured what type of postings are allowed in the expired budget period (does not apply for overall budget periods).
- Open mode (release 2308):
It is possible to post new budgets, commitments, and actual postings in the expired budget period.
Example: You can post a new purchase order in the fiscal year 2023 against the budget period 2022.
- Restricted mode:
It is not possible to post new budgets, commitments, and actual postings in the expired budget period. It is only possible to inherit the budget period within a document chain. If the budget chain changes the budget consumption, then up/downward adjustments apply (see the next chapter).
Example: You cannot post a new purchase order in the fiscal year 2023 against the budget period 2022, but you can post a good receipt in fiscal year 2023 against a purchase order from the fiscal year/budget period 2022. The good receipt inherits the budget period 2022.
The following information describes budgets, commitments, and actuals in a typical year-end scenario, using residual budget processing and commitments to carry forward with expired budget period handling - open mode.
Please note that due date updating might change the budget consumption date to a future date. This future date might not be available during the first derivation of the budget period.
Example: Earmarked Funds with a Posting date in year 2025 with a line item due in 2026, can either use budget period 2025 or 2026
If the derivation routine at the time of first derivation cannot use the due date in 2026 (e.g. it was not entered), it must take the posting date for derivation which will then derive Budget Period 2025.
In that case you get a warning, and you can overwrite the budget period from 2025 to 2026.
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