Funding Line Smoothing
The situation can exist where the system is not rounding the dollars
posting to funding lines within a priority correctly in all situations
where the funding priority budget is exhausted. The system will always
round the pennies of the funding line to the first line within a priority.
This can result in the funding lines, within a non-overflow funding priority,
encountering budget constraint errors because one line would be exceeding
the budget amount by pennies whereas the other lines would be under by
the same amount. Furthermore, a funding source may reject the reimbursement
request if it is even one penny more than the agreed upon amount.
While the Reimbursable
Expense Adjustment system process exists to correct for certain balancing
conditions, the Application Parameter of Funding Line Smoothing Tolerance
Limit (FUND_LN_SMOOTH_TOL) exists to provide a tolerance amount in real-time
to adjust split posting lines in order to reduce the number of rounding
issues. This logic is invoked when the tolerance is greater than zero
and the remaining budget within a Funding Line is exhausted (i.e., negative)
yet the entire Funding Priority is not exhausted. The tolerance determines
the maximum amount that can be smoothed. If the tolerance is exceeded,
the transaction will reject with the A4145 error: A4145.
Smoothing
ScenariosSmoothing
Scenarios
Scenario
1 - Two Manual Disbursement (MD) transactions are processed
where the first transaction does not exhaust the funding priority
but the second transaction does exhaust the funding priority.
For this scenario - Assume the following:
Tolerance
= $0.00
(Awarded +
Revenue. Credit) must be greater than or equal to (Cash Expenses
+ Charges + Back End Split)” is activated by one of the Budget
Control reference pages.
Front End
Split – 2 funding lines with a 50/50 split
MD #1 is entered
for $195.17
MD #2 is entered
for $300.01
|
|
|
|
Funding Profile |
FPF1 |
FPF1 |
FPF1 |
Funding Priority |
1 |
1 |
99 |
Funding Lines |
1 |
2 |
1 |
Availability |
200.00 |
200.00 |
500.00 |
MD #1 |
97.59 |
97.58 |
0.00 |
Availability |
102.41 |
102.42 |
500.00 |
|
|
|
|
MD #2 |
102.42 |
102.41 |
95.18 |
Availability |
-0.01 |
0.01 |
404.82 |
Scenario 2 - In the example illustrated
above, if the Tolerance is $0.01 then the System will shift $0.01
from Funding Line 1 to Funding Line 2 within the 1st Priority so that
2nd MD transaction will be submitted successfully by the system and
all the Funding line budgets will be used to the fullest extent.
|
|
|
|
Funding Profile |
FPF1 |
FPF1 |
FPF1 |
Funding Priority |
1 |
1 |
99 |
Funding Line
|
1 |
2 |
1 |
Availability |
200.00 |
200.00 |
500.00 |
MD #1 |
97.59 |
97.58 |
0.00 |
Availability |
102.41 |
102.42 |
500.00 |
|
|
|
|
MD #2 |
102.41 |
102.42 |
95.18 |
Availability |
0.00 |
0.00 |
404.82 |
MD #2 submits
successfully because the $.01 is smoothed to the second funding
line. In addition, the tolerance is not exceeded.
Note:
Funding line smoothing will automatically 'smooth' posting lines
to the budget breakdown thereby ignoring the % setup at the Funding
Line.
Scenario 3 - In this example, there is no tolerance
and the Availability at the budget lines do not match the percentage
defined for at the Funding Line, a result of either incorrect budget
updates or changes to percentages there were not completed at the
budget line.
For this scenario - Assume the following
that are different than the preceding scenarios:
Front End
Split – 4 funding lines with a 25% split on each
Budgets are
setup differently with a 30%/30%/20%/20% split
MD #1 is entered
for $292.78
MD #2 is entered
for $507.23
|
|
|
|
|
|
Funding Profile |
FPF3 |
FPF3 |
FPF3 |
FPF3 |
FPF3 |
Funding Priority |
1 |
1 |
1 |
1 |
99 |
4 Funding Line |
1 |
2 |
3 |
4 |
1 |
Availability |
240.00 |
240.00 |
160.00 |
160.00 |
500.00 |
MD #1 |
73.20 |
73.20 |
73.20 |
73.18 |
0.00 |
Availability |
166.80 |
166.80 |
86.80 |
86.82 |
500.00 |
|
|
|
|
|
|
MD #2 |
126.81 |
126.81 |
126.81 |
129.79 |
0.01 |
Availability |
39.99 |
39.99 |
-40.01 |
-39.97 |
499.99 |
Scenario
4 - Same as scenario 3 but with a tolerance of $100
|
|
|
|
|
|
Funding Profile |
FPF3 |
|
|
|
|
Funding Priority |
1 |
|
|
|
99 |
4 Funding Line |
1 |
2 |
3 |
4 |
1 |
Availability |
240.00 |
240.00 |
160.00 |
160.00 |
500.00 |
MD #1 |
73.20 |
73.20 |
73.20 |
73.18 |
0.00 |
Availability |
166.80 |
166.80 |
86.80 |
86.82 |
500.00 |
|
|
|
|
|
|
MD #2 |
166.80 |
166.80 |
86.80 |
86.82 |
0.01 |
Availability |
0.00 |
0.00 |
0.00 |
0.00 |
499.99 |
MD #2 “submits”
because the tolerance is not exceeded. In turn, $79.98 is removed
from the last two funding lines (lines 3 and 4) and applied to
the first two funding lines.
Since tolerance
limit is always > 0, only the positive lines will be compared
with the tolerance limit to determine whether to smooth or not.
For example, from Scenario – 3, the amounts to be smoothed for
Funding Priority 1 and Funding Lines 1 to 4 were $39.99 / $39.99
/ ($40.01) / ($39.99). If the tolerance limit is set to $39.99
or above, smoothing logic will be invoked. If the tolerance limit
is set to $39.98 or below, the smoothing logic will not be invoked.
Notice that
the percentages used on the MD are now matching the budgeting
percentages (30%/30%/20%/20%) as opposed to the funding line percentages
(25% for each line).