When budgeted funds for a fiscal year are not used by the end of the year, many businesses move the available amounts to the next year. Organizations that operate under budget do not lose the budgeted amounts. Instead, their spending limits for the next year are increased.

Year-End Budget Rollover Process

The PRC: Year End Budget Rollover process transfers year-end balances for top-down integrated project budgets to the next fiscal year. The process performs budget rollover functions for all selected top-down integrated budgets. The process calculates transfer amount for each project budget line by subtracting the total actual and commitment balances from the budgeted amounts. The process then adds the transfer amount for each project budget line to the budget amount for the first period of the next fiscal year.

When the year-end budget rollover process creates a baseline version for the new project budget version, it adjusts project encumbrances for the funding budget. The year-end budget rollover process generates liquidation entries to remove the project reservation for the funding budget for the closing fiscal year. For each account, the process subtracts the transfer amount from last period with a budget amount. If a task, a resource, or task and resource combination is budgeted across multiple accounts, then the process subtracts the transfer amount for each account from the last period with a budget amount. For an example of how the process subtracts the transfer amounts, see: Year-End Rollover Example.

The process also generates new encumbrance entries to reserve funds for the new year. The year-end budget rollover process generates an entry for each transferred amount and posts it to the first period of the next fiscal year.

As part of the year-end budget rollover process, Oracle Projects performs the following actions:

• Creates a baseline for the new budget version

• Generates encumbrance accounting events for both the most recent baseline budget version (credits) and for the new budget version (debits) to transfer the unspent project budget encumbrance amounts from the current fiscal year to the next fiscal year

• Creates accounting in final mode for the encumbrance accounting events in Oracle Subledger Accounting

• Validates funds against the General Ledger Funding Budget

  Note: The baseline process performs a funds check on the new encumbrance entries in force pass mode. In force pass mode, all budgetary control is ignored. The encumbrance entries to reserve additional funds in the new year are generated even if available funds for the General Ledger Funding Budget will be exceeded.

• Creates final encumbrance journal entries in Oracle Subledger Accounting

When the process PRC: Year End Budget Rollover is complete, you run the process PRC: Transfer Journal Entries to GL to transfer the encumbrance journal entries to Oracle General Ledger. When you submit the process PRC: Transfer Journal Entries to GL, you can optionally choose to have the process post the journal entries. Otherwise, you can manually post the journal entries in Oracle General Ledger. For additional information, see: Transfer Journal Entries to GL.

Year-End Rollover Example

In this example, the following table lists budget lines from the closing year.

In this case, the process PRC: Year End Budget Rollover subtracts transfer amounts from the closing year as follows:

• $200 from task 1.0, Office Supplies, account 01-422-7490-000, JAN-06

• $600 from task 1.0, Computer Supplies, account 01-422-7490-000, FEB-06

• $500 from task 1.0, Computer Supplies, account 01-422-7630-000, JUN-06

• $800 from task 2.0, Furniture, account 01-422-7630-000, MAR-06

The following table lists the budget lines that the process creates for the new fiscal year.