Explaining Residual Budget Handling

A residual budget is an unused (not consumed) budget at end of fiscal year. It is being calculated on an AVC control object.

While residual budget processing is (technically) an optional step, the reasons for processing your residual budget are as follows:

• Reporting of residual budget in the previous year and reporting of carry forward budget in the new fiscal year (no reporting back to the previous fiscal year)
• Exclude further usage of the residual budget in the previous fiscal year
• Reuse of the residual budget in the next budget period

• Budget lapses

  Budget cannot be used anymore, but should be reported separately as lapsed unusable budget in old fiscal year (separate Budget Type - non consumable).

• Budget is available as-is

  in the next fiscal year, but with same account assignment (inclusive budget period), but should be reported separately in old/new fiscal year

• Budget is available on different budget period

  (and other account assignments), transfer must be reported separately in old/new fiscal year.

All options can be used at the same time.

The residual budget processing generates budget transfer documents with different budget addresses for sender and receivers. The following information summarizes the options for different account assignments.

• Fund and grant are the same for sender and receiver
• Budget type is specified on the selection screen
• For budget account and cost center:
  • Sender: The exact budget address is being used to post the residual budget out of the old fiscal year.
  • Receiver: Distributed based on elements with positive residual and their ratio underneath a control object. Can also be moved to fixed elements on the selection screen. In that case, the cost center needs to be underneath the hierarchy node of the AVC control object.
• The budget period is the same of the sender and receiver unless the next budget period is chosen.

• Fund F1, Budget Period 2022
• Cost Center CC1 and CC2 roll up into AVC node CC
• Budget Accounts BA1, BA2, BA3

Without any given constants in the residual program (selection screen) for cost center and budget accounts the transfer posting will post 1:1 out of the account assignments, but will only generate budget into the account assignment combination which had a positive residual budget on the lower level. The receivers on the lower level will get the residual, distributed proportionally. Proportion is calculated as (AVC available amount * lower level residual budget)/total positive residual budget for all lower levels. In the example, this will result in the following budget transfer posting.

With given constants in the residual processing app for receivers and senders, for example, Sender CC1/BA1 and Receiver CC2/BA2, the result would look like this: