I did not find much information on this topic, except standard documentation from Microsoft. So I decided to write this article.
Organizations who uses budget module, during year end close process are required to transfer purchase orders. From closing year (example: 2020) to next opening year (example: 2021). Usually these Organizations are public or Government entities.
During transfer, the closing year (ex. 2020) budget is released (or reversed) in budget registries, and new lines are created in the next opening period (ex. Jan 2021).
The result is PO accounting dates are changed, and the financial distribution dates are changed.
- Budget must be active
- Purchase orders should be confirmed or should have reserve budget values (encumbrance)
- Purchase orders exceeding budget value will not transfer
- Enable carry forward in budget configuration setup* (Note: This is not required. However, check with your organization on how to control the budget funds available)
- Create Carry forward budget code
- Create additional original budget code to have specific workflow if required, or else you can use existing original budget code
- The next fiscal year should be open ( like Jan 2021)
- Navigate to General Ledger -> Period close -> Purchase order year-end process
- In this form, select transfer purchase order with carry forward. However you carry forward without any effect on budget registries.
- Click on retrieve purchase orders, system loads all the purchase orders reserved against budget defined. Then click on transfer. Batch will run to transfer, please keep on eye on the batch status.
Tip: Do not select all orders and process transfers at one go. Instead go in batches of 10 to avoid bulk errors.
The MR can show Budget and carry forward budget separately by using attribute filter. However there are quite some limitations in MR, like to show only actual expenditure of 2021 without carry forwarded.
Solution is better to have SSRS reports and same data model can be used in Power BI.
Disclaimer: Please use test environment to confirm the solutions first.
Copyright: All the images shown here are taken from Microsoft trial Dynamics 365 Finance environment.