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
Budget Lines |
|
|
|
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 |
Notice the MD #2 rejects with 'A3269' due to the rounding error.
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.
Budget Lines |
|
|
|
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
Budget Lines |
|
|
|
|
|
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 |
MD #2 rejects because smoothing logic is not invoked.
Scenario 4 - Same as scenario 3 but with a tolerance of $100
Budget Lines |
|
|
|
|
|
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).
