Just like budget lines, allotment lines are defined on budget documents. A more in depth discussion on that procedure is located in the Budget Document section. When an allotment line is created, the bucket updated on that allotment will be the same one updated on the budget line. The Event Type ID on the budget line will call a posting code that directs the Budget Posting Routine to update a particular stand alone budget amount. Therefore a budget line that adopts $10,000.00 with four equal quarterly allotments will update the Adopted bucket on the budget line for the $10,000.00 and the Adopted bucket on each of the four allotment lines for $2,500.00. If a budget control exists to keep spending in check using that Adopted bucket, then if that control is also checked to Include Allotments, then the most that can be spent out of the first quarter is $2,500.00 and not the $10,000.00 at the budget line. The ”Budget Controls” section contains more information on budget controls and their application to allotment lines.
When creating or maintaining an allotment line, an update to the budget line is not required - the dollar amount can be zero, however an event type must be entered so the allotment line can be created or updated. Having that amount set to zero will require the use of the allotment distribution amount. There is an edit that prevents the sum of allotment lines on a budget document from exceeding the distribution amount if that amount is not zero. If it is zero, then the sum of allotment lines cannot exceed the dollar amount.
Given that only 1 choice of frequency can be made within a BFY and budget structure combination, the need often arises to allot certain budget lines differently than others. In such a case, the allotment frequency must be the most detailed. Additionally, accumulation must be used. Not every frequency combination will work. Annual and accounting period frequencies will work not because a frequency of accounting period does not allow for the definition of any accounting periods outside of the fiscal year, which is the budget fiscal year of the allotted budget line. The following example shows allotments for three different budget lines with the same total allotted amount using an allotment frequency of accounting period. The first line allots by accounting period, the second by quarter and the third by semi annual periods.
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
|
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
1000 |
|
3000 |
0 |
0 |
3000 |
0 |
0 |
3000 |
0 |
0 |
3000 |
0 |
0 |
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6000 |
0 |
0 |
0 |
0 |
0 |
6000 |
0 |
0 |
0 |
0 |
0 |
The annual allotment frequency provides the ability for a multi year budget, such as a capital spending budget, to be defined by no particular budget fiscal year and maintain the ability to track and control spending by allotments defined by a fiscal year. Without the Inception-to-Date accumulation option, spending in a fiscal year can be capped, thus controlled. With that accumulation option, spending in one fiscal year will be limited to the amount allotted to that year and any in any previous year that is still available, thus partially capped.
Below are samples depicting the logic used by the Budget Posting Routine to determine what allotment period should be found when making an update with an accounting document that has a budgetary impact. Sample dates have been given for clarity. For the semi annual calculation, accounting periods 0 to 7 will be in period 1 and 8 to 99 will be in period 2. The Accounting Period table has 13 as the highest numbered Adjustment Period besides 99, which is for annual closing purposes.
Fiscal Year = Budget Fiscal Year
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An accounting document with: Record Date of 12/31/2004 Fiscal Year (FY) 2005 Budget Fiscal Year (BFY) 2005 Quarter (QTR) 2 Accounting Period (APD) 6 Semi Annual 1 |
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Fiscal Year < Budget Fiscal Year
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An accounting document with: Record Date of 06/15/2004 Fiscal Year (FY) 2004 Budget Fiscal Year (BFY) 2005 Quarter (QTR) 4 Accounting Period (APD) 12 Semi Annual 2 |
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Fiscal Year > Budget Fiscal Year
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An accounting document with: Record Date of 07/15/2005 Fiscal Year (FY) 2006 Budget Fiscal Year (BFY) 2005 Quarter (QTR) 1 Accounting Period (APD) 1 Semi Annual 1 |
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From the above rules it can be seen that if the Allotment Frequency is:
Accounting Period, then the APD from the accounting document's posting line will be the one used to find the allotment line as long as FY = BFY on that posting line. When the FY < BFY, then APD 1 is used. When the FY > BFY, then the highest APD marked as an Adjustment Period on the APD table other than APD 99 will be used.
Quarterly, then the QTR from the accounting document's posting line will be the one used to find the allotment line as long as FY = BFY on that posting line. Quarter is not displayed on the posting line, but is determined by taking the APD of that posting line and looking up the Quarter on the APD table. When the FY < BFY, then QTR 1 is used. When the FY > BFY, then Quarter 5 will be used.
Semi Annual, then the Budget Posting Routine takes the FY from the posting line and finds the total number of Accounting Periods defined to the FY on the APD table. That number is divided by 2 to determine which APD's are in Semi Annual periods 1 or 2. When there is an odd number of periods, then Semi Annual Period 1 has one more APD than 2. Semi Annual period is not displayed on the posting line. When the FY < BFY, then Semi Annual 1 is used. When the FY > BFY, then Semi Annual 3 will be used.
Fiscal Year, then the FY from the accounting document's posting line will be the one used to find the allotment line. This is true for all three situations: FY = BFY, FY < BFY, and FY > BFY.