Check Available Budget During Posting Example

To demonstrate the "Check Available Budget During Posting" feature, see the following example. Assume Fund 100 is Restricted Federal Funds and Fund 200 is Restricted State Funds. GL account 5200 is Supplies Expense, and Grant 100 is Title II Funds. Also assume you have the following budget items already posted to the ledgers for the current year:

Fund	GL	Grant	Effective Date	Increase	Decrease
100	5200	100	01-01-20xx	35.00
100	5200	100	02-01-20xx	15.00
100	5200	100	03-01-20xx	25.00

Assume further that the "Check Available Budget During Posting" check box was completed as follows:

• "General Ledger" and "Grant" were chosen as the segments.
• "Prevent From Posting" option was selected when over budget.
• "Period to Date" method and "Expense Only" account type were selected.

Now, begin to post a transaction with the following transaction budget item using an Effective Date of 06-15-20xx. The System Date—that is, the date to which the computer is currently set—is also 06-15-20xx. Following is the first transaction posted this year with this account combination:

Fund	GL	Grant	Debit	Credit
100	5200	100	80.00

Since GL 5200 is an expense type account, the system performs the checking.

To determine if this item is over budget, the system first adds all budget records for GL account 5200 and Grant account 100 from the beginning of the organization's fiscal year through and including the effective date of the transaction (in this case 1-1-20xx through 6-15-20xx). This total is $75.00 (USD). Note that the Fund does not matter since it was not specified as a critical segment.

Next, the system adds the total of all expenses posted to GL account 5200 and Grant account 100 plus the current transaction. We assume this is the first transaction this year with GL account 5200 and Grant account 100, so the total is $80.00 (USD).

Because this transaction exceeds the available budget, the system displays the Over Budget form, showing which budget items in this document exceed budget. Since the Prevent From Posting option when over budget was chosen, this document cannot be posted. Therefore, the documents in this session that exceed budget must be moved to a new session.

Alternatively, if the Warn Before Posting option was chosen rather than Prevent From Posting, you could continue the post or move the document to a new Session.

Latest Date - Period to Date Method

When the system determines if the current transaction is over budget, it uses the latest date as the end date. For example, look at the first three lines of the first example. Suppose the effective date of the transaction is 2/15/04 and the system date (that is, the date that the transaction is being entered) is 3/5/04. The system uses the system date because it is later, so the transaction "passes" up to $75.00 (USD). But suppose the effective date is 2/15/04 and the system date is 1/15/04. Then, the system uses the effective date because it is later, and the transaction passes up to $50.00 (USD).