Carry Forward and Reversion Example

Core Modules > General Ledger (GL) > Year-End Processes > Reversions and Carry Forwards

Carry Forward and Reversion Example

At the fiscal year-end, the Ichthyology Department (Org Code ICH) has an account 1234567 in chart BL. The cash object code in the account's Chart of Accounts is 8000. The Organization Reversion table for the department specifies that its

• budget reversion account is 1023295.

• cash reversion account is 1023299.

Reversion codes (rules) and carry forward object codes are shown in the carry forward and reversion actions summarized in the following table.

Carry forward/reversion actions (example)

Category	Object Code	Rule	Budget Amt	Actual Amt	Budget Balance	Encumb- rances
Org Wages	3000	N2	6000	5000	1000	100
Org Wages	Action: Encumbrance not covered; 1000 reverted to 1023295
Salary /Fringes	2004	R2	20000	18000	2000	200
Salary /Fringes	Action: Encumbrance not covered; 2000 reverted to 1023295
Financial Aid	5800	N1	3000	4000	-1000	500
Financial Aid	Action: Encumbrance not covered (- budget balance); -1000 carried forward to 1234567
Capital Equipment	7000	N1	1000	800	200	300
Capital Equipment	Action: 200 carried forward to 1234567 to cover part of encumbrance
Reserve	7900	N1	1000	500	500	400
Reserve	Action: 400 carried forward to 1234567 to cover encumbrance; 100 reverted to 1023295 for + balance
Transfer Out	5199	R2	500	500	0	200
Transfer Out	Action: Encumbrance not covered; nothing reverted; nothing carried forward
Transfer In (income)	1699	R2	300	500	200	300
Transfer In (income)	Action: Encumbrance not covered; 200 reverted to 1023295
Travel	6000	N1	1000	900	100	100
Travel	Action: 100 carried forward to 1234567 to cover encumbrance; nothing else remains to revert or carry forward
Other Expense	5000	N1	500	500	0	200
Other Expense	Action: Encumbrance not covered (0 budget balance); nothing reverted; nothing carried forward.
Assess Expend	7900	C1	400	250	150	100
Assess Expend	Action: 100 carried forward to 1234567 to cover encumbrance; 50 carried forward to 1234567 from + balance; nothing reverted
Revenue (income)	1800	N2	1200	1000	-200	800
Revenue (income)	Action: Encumbrance not covered (- budget balance); -200 carried forward to 1234567
Cash	8000	n/a	10000	4000	6000	n/a
Cash	Action: 6000 reverted to 1023299

Note that the object code for each category is used only if the Carry Forward by Object Code attribute of the Organization Reversion table is set to 'Yes.' The Transactions Generated table (see below) illustrates both sets of results—one set when the Carry Forward by Object Code Indicator is 'Yes' and another set when it is 'No').

Transactions generated (example)

Transaction	Account	CF by Obj/ Category	Account	Object Code	Amount	DrCr
Budget Reversion	Actual	Any	1234567	7900	-3300
Budget Reversion	Reversion	Any	1023295	7900	3300
Budget Carry Forward	Actual	No Consoli- dated	1234567	0110	-350
Budget Carry Forward	Actual	No Consoli- dated	1234567	7900	-350
Budget Carry Forward	Actual	Yes Fin Aid	1234567	0110	-1000
Budget Carry Forward	Actual	Yes Fin Aid	1234567	5800	-1000
Budget Carry Forward	Actual	Yes Cap Equip	1234567	0110	200
Budget Carry Forward	Actual	Yes Cap Equip	1234567	7000	200
Budget Carry Forward	Actual	Yes Reserve	1234567	0110	400
Budget Carry Forward	Actual	Yes Reserve	1234567	7900	400
Budget Carry Forward	Actual	Yes Travel	1234567	0110	100
Budget Carry Forward	Actual	Yes Travel	1234567	6000	100
Budget Carry Forward	Actual	Yes Assess Expend	1234567	0110	150
Budget Carry Forward	Actual	Yes Assess Expend	1234567	7900	150
Budget Carry Forward	Actual	Yes Revenue	1234567	0110	-200
Budget Carry Forward	Actual	Yes Revenue	1234567	1800	-200
Cash Reversion	Actual	Yes	1234567	8000	6000	Cr
Cash Reversion	Reversion	Yes	1023299	8000	6000	Dr
Fund Balance Reversion	Actual	Yes	1234567	9899	6000	Dr
Fund Balance Reversion	Reversion	Yes	1023299	9899	6000	Cr

The year-end program's run-time parameters are:

• unallocated object code 7900

• beginning budget cash object code 0110

• fund balance object code 9899