Many contracts with vendors are for a short duration; however, some can span multiple years. When they do span years, sometimes there is no agreement for a dollar amount per budget year. In this case, these contracts either remain open in the budget year they originate or are rolled forward into each new budget year. For those multi-year contracts that have to be defined by budget year, CGI Advantage Financial provides that ability on the Requisition, Purchase Order, and Accounting Based Spending document types. The Contract Roll chain job is also supplied to assist with the maintenance of these contracts.
Such documents are completed initially with multiple accounting lines that contain at least one line for the current budget year and one or more for future years. Those accounting lines for future years use a non-accounting event type that does not have any posting codes. This is a critical setup step to ensure proper posting line generation later by the chain job. These lines also would have the Reserved Funding field set to Yes so that manual references or copy forward actions taken will not include these 'out year’ lines.
The chain job will use input parameters to select records and perform one or more of the following actions on a generated, modification draft version:
For lines that match the BFY selection parameter and non-accounting event type parameter, the event type will be changed to the accounting event type parameter.
For lines that match the BFY selection parameter, the Reserved Funding value will be changed to No.
For lines equal to or greater than the BFY selection parameter, the FY will be changed to equal the FY input parameter.
Only the event type change has any direct accounting impact as the accounting line will not pre-encumber or encumber funds. The change of Reserved Funding will enable the accounting line to be automatically referenced next time. The change of FY is to validate COA on that accounting line as they may no longer be active or exist in the new year.
There is not a timing connection between this batch job and the roll and lapse jobs. Those jobs can roll and lapse lines on these multi-year contracts if desired. The timing issue for the contract roll job is that it should follow the adoption of new year budgets.
For detailed information on the job (such as when to run, input, output, and process parameters) refer to the associated run sheet in the CGI Advantage Financial - General Accounting Run Sheets guide.