The Budget Adjustment (BA) and Year End Budget Adjustment (YEBA) documents are used to record or adjust budget entries. It can be used to modify a base budget, a current budget or both. It is a financial planning tool that allows an organization to adjust the current and base budget for a given account as circumstances may change throughout the fiscal year. It may be used to create a budget for a new account established after the beginning of a new fiscal year.
- Base budgets designate an ongoing fiscal commitment.
- Current budgets designate budgetary authority for the current fiscal year.
- A BA document is normally used to:
- reallocate current budget as necessary throughout the fiscal year
- transfer funds from one general fund account to another
- establish budget lines in new accounts created after the fiscal year begins
- make long-term adjustments to the base budget
- The document allows for the establishment of monthly budgeted amounts for users that wish to maintain budget information at this level.
The Year End version is similar except for the following:
- Entries will post in period 13.
- Will not route to the Fiscal Officer, Organization Review must be set up in order to submit the document.
The following rules apply to the Budget Adjustment:
- Accounts with Budget Recording Level of No Budget are not allowed. The budget adjustment document cannot be used on a cash control (non-budgeted) account.
- Negative amounts are not allowed except when using the Error Correction option.
- Increases and decreases must balance in the document with relation to object code types. Increases in income may be balanced by decreases in other income lines or by increases in expenditures. Decreases in income may be balanced by increases in other income lines or by decreases in expenditures. Similar logic applies to changes in expenditures
Fiscal Year Function Control
The Fiscal Year Function Control table controls what fiscal year is available for use on the Budget Adjustment document and if the Base Budget column can be used.
- BAACTV: Controls the fiscal years that display in the Budget Adjustment tab.
Financial Document Detail
The Financial Document Detail is in the document overview tab and is used to specify for which fiscal year the budget is being created/adjusted in order to determine if the Base Adjustment column will be available for entry. If Fiscal Year Function Control, BASEAD = Y, for the selected fiscal year, the Base Budget can be entered.
NOTE: This Year field does not control where the entries will post, they will post in the current year and period, unless the Year End version is being used, then it will post to period 13 of the prior fiscal year.
If you change the fiscal year, click Refresh to enable/disable the Base Budget column for the selected fiscal year.
The Accounting Lines tab in the BA/YEBA document contain Current Amt and Base Amount columns. If Fiscal Year Function Control, BASEAD=Y, for the selected fiscal year. The Base Amt column is editable.
- Current Amt: Creates CB (Current Budget) Balance type entries, this is the budget amount that shows on Available Balances and Balances by Consolidation lookups.
- Base Amt: Creates BB (Base Budget) Balance type entries. Base Budget can be viewed in the General Ledger Balance lookup by changing the Balance Type to BB. Whether or not this field can be edited is controlled by permission Modify Accounting Lines BA baseBudgetAdjustmentAmount.
To distribute an accounting lines current budget amount into monthly periods, click Show on the Monthly Lines section.
This opens a series of twelve monthly periods where you can specify how much of the current amount for this account line should be distributed to each month. The total of all monthly distributions must equal the total current amount for this accounting line.
Generation of Fringe Benefit Amounts
When you submit a BA/YEBA document that uses a Labor Object Code and parameter BENEFITS_IND = Y, a message displays asking if you wish to have the system automatically generate the associated benefits.
NOTE: Salary object codes are defined in the Labor Object Code table as a Salary object code, refer to Setting up Labor Distribution to calculate benefits for more information.
- Selecting No routes the document without generating any additional accounting lines.
- Selecting Yes generates the appropriate benefit lines and amounts (determined by entries in the Labor Object Benefit and Labor Calculations tables) and returns you to the document to view the entries it has created. If object codes used on the document generate fringe benefits, a manual entry is required to balance the document.
Click Submit again to route the document after benefit accounting lines have been generated. You will be asked again if you want to calculate Benefits, if you have already done so, click No.
The Fiscal Officer will also be asked if they want to calculate benefits, if they did not change the accounting lines, they can click No to continue.
Income Stream Adjustments
If a Budget Adjustment involves two or more accounts with different Income Stream Accounts (attributes of Account) and parameter TRANSFER_IND = Y, Transfer of Funds transactions are created to properly adjust cash between the Income Stream accounts. This Transfer of Funds is generated after the Budget Adjustment is approved and does not route for approval itself. The following parameters support this functionality:
- TRANSFER_FUNDS: Identifies the fund groups for which Transfer of Funds general ledger pending entries will be generated when budget is being moved to and from accounts with different Income Stream Accounts.
- TRANSFER_OBJECT_CODE: Object code used when creating the Transfer of Funds general ledger pending entries when the accounts used on the Budget Adjustment have different income stream transfer accounts.
- TRANSFER_SUB_FUNDS_EXCLUDED: Identifies the sub fund groups for which Transfer of Funds general ledger pending entries will not be generated when budget is being moved to and from accounts with different Income Stream Accounts.
Budget Adjustment Restriction Codes
The Sub-Fund and Fund Group tables have an attribute called Budget Adjustment Restriction Codes which can prevent budget transfers between charts, funds and sub-funds.
- Values for fund group are: C (Chart), O (Organization), A (Account), or F (Fund).
- Values for sub-fund group are: C (Chart), O (Organization), A (Account), S (Sub-Fund), or N (None).
- The budget adjustment applies the following rules using these values:
- There can only be one fund group on the document.
- If any sub-fund on the document has a restriction (value other than N), then only that sub-fund can be used on the document. Furthermore, the restriction level for that sub-fund is applied to the document.
- If all sub-funds on the document have a value of N, the restriction of the fund group is applied to the document.
The BA document goes to Final when submitted by the initiator if the following conditions are met:
- The document only adjusts a single account
- The document only adjusts current budget amount
- The Initiator is the fiscal officer for the account
- The account is not identified as a Contracts & Grants account
- The total decrease amount is not greater than the current budget balance for the object code being decreased
- If previous conditions are not met, the document continues with standard financial document routing, based on the account numbers used on the document as follows:
- The fiscal officer for each account must approve.
- Optionally, organization review routing occurs for the organization that owns each account.
- Optionally, sub-fund routing occurs based on the sub-fund of each account.
- Optionally, award routing occurs based on the CG Responsibility ID assigned to Contracts & Grants accounts.