Process Carry Forward Payables and Vouchers (30.3.7)

1

Prepare for Year-End Close and Budget Close

DFS and EOG/OPB publish memorandums that provide instructions, guidance, and deadlines for fiscal year (FY) end activities including Carry Forward/Certified Forward. DFS provides information related to undisbursed appropriations for operations, identified as incurred obligations and certified Fixed Capital Outlay (FCO) undisbursed appropriations, pursuant to Section 216.301, F.S. The fiscal year-end close involves finalizing the State’s financial activities for each 12-month period. At the end of the fiscal year, the accounting year is closed in Florida PALM, preventing any further transactions from affecting that year’s financial results. As the fiscal year-end close activities are occurring, agencies will also perform budget close activities. It is important to note that the budget close operates independently of the fiscal year-end close. Agencies prepare for budget close and review the agency addressed memorandum regarding undisbursed appropriations. 

Agencies will identify and process obligations as part of the fiscal year-end closeout process and take all appropriate steps to prepare for budget close. The amounts identified as incurred obligations must not exceed available appropriation balances by budget entity, category, fund, and budget period (appropriation year). Agencies may refer to 20.3 Perform Budget Close for additional details on Carry/Certified Forward.

2

Review Open Encumbrances

Agencies review current year Encumbrances (PO) to determine if balance updates are needed. The different type of actions to update Encumbrances (PO) are outlined below with the respective Business Process, 30.2 Establish and Maintain Encumbrances

Close Encumbrance

• Close All Lines - Agencies can close all lines on the Encumbrance (PO) and release the appropriations commitment.
• Close Individual line – Agencies can close individual lines on the Encumbrance (PO) and release appropriation commitment.

Update Encumbrance

• Reduce Line – Agencies can reduce the Encumbrance (PO) and release the amount back to the appropriation balance.
• Increase Line – Agencies can increase the Encumbrance (PO) if the invoice expected is greater than the existing line. The amount must still be within available appropriations.
• New Line – Agencies can add a new line to an existing Encumbrance (PO). The amount must still be within available appropriations.

Establish an Encumbrance

• Agencies can create a new Encumbrance (PO) if one does not exist to commit available appropriations.

30.2 Establish and Maintain Encumbrances also includes interface processes from MFMP that can be used to establish Carry Forward Encumbrances (POs).

Agencies can review KKR018 Agency Commitments Report to monitor Encumbrances (PO) and Carry Forward Payables (Receipts)

Agencies determine if a Carry Forward Payable is needed. Encumbrances (POs) and Carry Forward Payables (Receipts) must be established by the end of the Carry Forward process which is on or about July 15th. Any Encumbrance (PO) that has a remaining balance on June 30th is considered eligible for Carry Forward.

If a Carry Forward Payable (Receipt) or Encumbrance (PO) is not established on or about July 15th appropriations will be part of 1st Reversion (refer to Step 13).

Three methods are available for establishing a Carry Forward Payable (Receipt), the Inbound Carry Forward Interface (POI006), the Inbound Carry Forward Spreadsheet Upload (POI005), and manual entry using the Process Receipt functionality (receiving page) within the Purchasing Module.

3

Manually Add/Update an Encumbered/Unencumbered Carry Forward (CF) Payable.

A Carry Forward Payable (Receipt) is created when an agency wants to record a Payable for financial reporting purposes and obligate expenditures for Carry Forward. Carry Forward Payables (Receipts) are created within the Receipt functionality (receiving page) within the Purchasing Module.

An Agency can create two types of Carry Forward Payables (Receipts):

Encumbered Carry Forward Payable (Receipt): An Agency can create a Payable (Receipt) from an existing Encumbrance (PO) ID and the distribution lines are copied directly from the existing Encumbrance (PO).

Unencumbered Payable (Receipt): An Agency can create a Payable (Receipt) where an Encumbrance (PO) was not referenced.

Agencies can directly create a Carry Forward Payable (Receipt) using the Receipt functionality (receiving page) within the Purchasing module of Florida PALM. Refer to the Figure 1: Add Receipts Page image below, on how to add a PO Receipt Checkbox for PO (Encumbered Carry Forward Payable) and Non-PO Receipts (Unencumbered Carry Forward Payable).

Any updates to a Carry Forward Payable (Receipt) can only be done through online functionality. Refer to the Figure 2: Maintain Receipts Page image below, to add all the information for creating a Receipt.

4

Inbound Carry Forward Spreadsheet Upload (POI005)

A Carry Forward Payable (Receipt) is created when an agency wants to record a Payable for financial reporting purposes and obligate expenditures for Carry Forward. Carry Forward Payables (Receipts) are created within the Receipt functionality (receiving page) within the Purchasing Module.

An Agency can create two types of Carry Forward Payables (Receipts):

Encumbered Carry Forward Payable (Receipt): An Agency can create a Payable (Receipt) from an existing Encumbrance (PO) ID and the distribution lines are copied directly from the existing Encumbrance (PO).

Unencumbered Payable (Receipt): An Agency can create a Payable (Receipt) where an Encumbrance (PO) was not referenced. The Carry Forward Spreadsheet Upload Processor can use the Inbound Carry Forward Spreadsheet Upload interface to establish Carry Forward Payables (Receipts).

The interface will require a valid Supplier, as Carry Forward Payables (Receipts) may not be set up with a “Generic Supplier ID”.

Agencies are required to add an agency-unique Receipt Source ID for each Carry Forward Payable created in POI005. The Receipt Source ID is required to identify the Agency or Agency Business System where the transaction originated. In addition, this field helps agencies tie to their Agency/Agency Business System.

A SpeedKey may be used in the Carry Forward Spreadsheet Upload to populate the distribution lines with ChartField values. Agencies will have the opportunity to define their own SpeedKeys.

5

Inbound Carry Forward Interface (POI006)

A Carry Forward Payable (Receipt) is created when an agency wants to record a Payable for financial reporting purposes and obligate expenditures for Carry Forward. Carry Forward Payables (Receipts) are created within the Receipt functionality (receiving page) within the Purchasing Module.

An Agency can create two types of Carry Forward Payables (Receipts):

Encumbered Carry Forward Payable (Receipt): An Agency can create a Payable (Receipt) from an existing Encumbrance (PO) ID and the distribution lines are copied directly from the existing Encumbrance (PO).

Unencumbered Payable (Receipt): An Agency can create a Payable (Receipt) where an Encumbrance (PO) was not referenced.

An interface is established with select agency business systems (as appropriate) and Florida PALM to establish Carry Forward Payables (Receipts).

The interface will require a valid supplier, as Receipts may not be set up with a “Generic Supplier ID”.

Agencies are required to add an agency unique Receipt Source ID for each Carry Forward Payable (Receipt) created in POI006. The Receipt Source ID is required to identify the Agency or Agency Business System where the transaction originated. In addition, this field helps agencies tie to their Agency/Agency Business System.

STMSwill leverage POI006 Inbound Carry Forward Interface to record Carry Forward Payables in Florida PALM.

6

Perform Interface Error Checking

Edit validations are performed on each interface before the data is allowed to load to the Accounts Payable staging tables. If the file is rejected, all transactions in the file are rejected and the file must be resubmitted once the issue is resolved.

If the file is not rejected, edit validations are performed on each transaction before the data is allowed to load for processing in the Accounts Payable module. Additional edits will be performed during the transaction life cycle.

Rejected transactions are managed through the 120.1 Interface Error Handling Process.

Edit Validations include:

• ChartField Validation
• ChartField Combination Edit
• Amount Validation
• Open Period Validation
• Supplier Validation
• The edit check process includes the Budgetary Value combination edit check, which checks Fund, Budget Entity, & Category combinations for a Business Unit, the transaction will fail if this combination is inaccurate.

In addition, there are interface specific edits that pertain to Carry Forward Payable (Receipt) data elements and fields.

7

Run Receipt Accrual Process

After the Carry Forward Payables (Receipts) is created the Receipt Accrual Process is run to create accounting entries.

Encumbered Carry Forward Payable

The accounting entries are created to reduce encumbrance, increase expense, and record the Carry Forward liability.

Unencumbered Carry Forward Payable

The accounting entries are created to increase expense and record Carry Forward liability.

The Receipt Accrual process will run with an accounting and budget date of 6/30/XXXX.

8

Run Budget Check

All Carry Forward Payables (Receipts) run through Budget Check process to validate sufficient appropriations is available.

After Budget Check, two different actions occur based upon the Carry Forward Type:

Encumbered Carry Forward Payable

During this step the committed appropriations on the Encumbrance (PO) is decreased by the amount created on the Carry Forward Payable (Receipt). Expenditures is increased and Carry Forward liability is recorded.

Unencumbered Carry Forward Payable

During this step the Unencumbered Carry Forward Payables (Receipts), expenditures is increased and Carry Forward liability is recorded.

9

Manage Budget Exceptions

If the Carry Forward Payable (Receipt) fails budget check the Carry Forward Processor can update the amount, and/or ChartField string, or close/cancel the transaction to resolve the error. Refer to 20.2 Budget Execution Management for additional information.

Once the Carry Forward Payable (Receipt) is corrected, the Carry Forward Payable will continue to Run Budget Check (Step 9) and Run Journal Generator (Step 11). Managing Carry Forward Payables (Receipts) is critical to ensure Carry Forward transactions are posted prior to the 1st Reversion date.

10

Auto Close Prior Year Pending Encumbrances/CF Payables/CF Vouchers

Florida PALM will systematically close all Encumbrances (POs) and Carry Forward Payables (Receipts) with a prior year budget year that are pending or are in error status.

Prior to 1st Reversion (~July 15th) 

Encumbrance (PO)

Encumbrance (PO) is closed, and appropriations was not committed. Agencies may create another Encumbrance with prior year budget before the 1st Reversion.

Carry Forward Payables

Carry Forward Payables (Receipts) is closed, and appropriations was not committed. Agencies may create another Carry Forward Payable (Receipt) with prior year budget before the 1st Reversion.

Agencies may run the KKR018 Agency Commitments Report and APR009 Voucher Detail Report to view Encumbrances and Carry Forward Payables (Receipts).

11

Run Journal Generator

The Journal Generator (JGEN) processes post accounting entry data from the Florida PALM source modules, summarize the data, and create journals in the General Ledger. The Journal Generator process will edit check, budget check, and post the journal entries created during the process.

12

Outbound Carry Forward Payable (POI007)

Once the Carry Forward Payables (Receipts) have been created in Florida PALM an Outbound interface is provided for the agencies with the established encumbered and unencumbered payables.

A Receipt ID is provided on the outbound file for agencies to reference when a Voucher is created.

The agency unique Source Receipt ID is provided to help agencies tie to their Agency or Agency Business System.

13

Run 1st Reversion

Prior to the 1st Reversion, the Auto Close/Cancel Process is run to close any transactions that are not posted. Transactions must be budget checked with a prior year budget date and posted to the General Ledger.

Any remaining appropriation that is not encumbered, created as a payable, or created as a voucher is temporarily restored to Commitment Control Ledger, and then reverted on or about July 15th.

Reversion is occurring in business process model 20.3 Perform Budget Close.

14

Create a Voucher

Once the invoice and goods are received, the Voucher is ready to be created and processed. The Voucher can be created from three different methods:

Encumbrance (PO) – An Encumbrance is referenced on a Voucher using the PO ID field. When the PO ID field is populated, the distribution lines are copied from the Encumbrance (PO) to the Voucher.

Encumbered/Unencumbered Carry Forward Payable (Receipt) – The Carry Forward Payable (Receipt) is referenced on a Voucher using the Receipt ID field. When the Receipt ID field is populated, the distribution lines are copied from the Carry Forward Payable (Receipt) to the Voucher.

Refer to the Figure 3:Voucher Entry Page image below, to see how a Carry Forward Payables (Receipts) are created. When the PO is selected, this is showing an Encumbered Carry Forward Payable (Receipt). When the Non-PO Receipt is selected, this is showing an Unencumbered Carry Forward Payable (Receipt).

Vouchers can be processed up until the 1st Reversion from prior year’s appropriation by referencing the 6/30/XXXX Budget Date without using any of the methods above.

Carry Forward Payables (Receipts) is not available for purchases made through PCard (Works). Agencies will have until the 1st reversion to process Pcard Vouchers through Works from the prior year, by referencing the 6/30/XXXX Budget Date. Carry Forward Vouchers that reference a prior period Budget Date will go through the established process in 30.3 Enter and Process Vouchers and 30.4 Process Payments until the cutoff date in September. Once the Receipt ID is entered on the Carry Forward Voucher, the expense account will be replaced with the Carry Forward liability account. Agencies can refer to APR009 Voucher Detail Report and APR032 Payment Detail Report.

As part of both processes, API031 Outbound Voucher and Payment Extract is provided to agencies and will include the Encumbrance (PO) ID Or Carry Forward Payable (Receipt ID) depending on how the Carry Forward Voucher was created.

Agencies should not change ChartFields on the Voucher that are populated from the Encumbrance (PO) ID or Carry Forward (Receipt ID), if this occurs, the Carry Forward Voucher will process in order of precedence for interfaces, or through manual entry agencies could lose their ability to pay against prior year budget previously committed. Refer to Appendix D for additional information.

15

Monitor Encumbrances/CF Payables/CF Vouchers

Agencies should monitor the Encumbrance (PO), Carry Forward Payable (Receipt), and Carry Forward Voucher through the lifecycle.

If the Carry Forward Payable (Receipt) is updated it will continue to Run Receipt Accrual Process (Step 7).

Outbound Carry Forward Payable (POI007)

Once the Carry Forward Voucher is posted, the Outbound Carry Forward Payable interface is provided to agencies with the update to the Carry Forward Payable (Receipt).

16

Run 2nd Reversion

Prior to the 2nd Reversion, the Auto Close/Cancel Process is run to close any transactions that are not posted. Transactions must be budget checked with a prior year budget date and posted to the General Ledger.

Any remaining appropriation that is not encumbered, created as a payable, or created as a voucher is temporarily restored to Commitment Control Ledger, and then reverted on or about September 30th.

Reversion is occurring in business process model 20.3 Perform Budget Close.

Agencies are no longer able to create Carry Forward Vouchers. Any vouchers created must be in current year appropriations.

AP08

Carry Forward Payable Voucher

Debit: Carry Forward Liability (S) 

Credit: Accounts Payable (S)

No Entry

Debit: Carry Forward Liability 

Credit: Accounts Payable

AP09

Close Carry Forward Payable Voucher

Debit: Accounts Payable (S) 

Credit: Carry Forward Liability (S)

No Entry

Debit: Accounts Payable 

Credit: Carry Forward Liability

PO03

Relieve Payable Encumbrance

No Entry

Decreases Encumbrance Increases Available Appropriations Increases Allotments

No Entry

Encumbered Payable

Debit: Expenditures (U)

Credit: Carry Forward Liability (S)

Decreases Available Appropriations

Decreases Allotments Decreases Releases Increases Expense

Debit: Expenditures

Credit: Carry Forward Liability

PO04

Unencumbered Payable

Debit: Expenditures (U) 

Credit: Carry Forward Liability (S)

Decreases Available Appropriations Decreases Allotments Decreases Releases Increases Expense

Debit: Expenditures 

Credit: Carry Forward Liability

PO05

Restore Payable Encumbrance

No Entry

Increases Encumbrance Decreases Available Appropriations Decrease Allotment

No Entry

Close Encumbered Payable

Debit: Carry Forward Liability (S) 

Credit: Expenditure (S)

Decreases Expense

Debit: Carry Forward Liability Credit: Expenditure

PO06

Close Unencumbered Payable

Debit: Carry Forward Liability (S) 

Credit: Expenditure (S)

Decreases Expense

Debit: Carry Forward Liability 

Credit: Expenditure

R3

KKR058

Budget and Cash Checking Exceptions/Warnings Report – A custom report that lists transactions budget and cash check exceptions and warnings along with transaction amounts, to include the type of exception and where an override was applied.

PeopleSoft

Daily, Monthly

Agency, DFS

R4

APR009

Voucher Detail – a report that lists posted vouchers that can be filtered by various criteria.

Data Warehouse

Daily, Monthly

Agency, DFS

R6

APR032

Payment Detail Report – A report that lists warrant and electronic payment detail and status for payments.

Data Warehouse

Daily, Monthly

Agency, DFS

R10

KKR018

Agency Commitments Report – a report that provides encumbrances and payables by ChartField combinations by budget period(s).

PeopleSoft

Daily, Monthly

Agency, DFS

POI005

Inbound Carry Forward Spreadsheet Upload– Inbound interface for agencies to establish encumbered and unencumbered payables for Carry Forward purposes, leveraging the receipt accrual functionality, via spreadsheet (Excel) upload.

Periodically

Agency Business Systems

Florida PALM

POI006

Inbound Carry Forward Interface – Inbound interface for agencies to establish encumbered and unencumbered payables for Carry Forward purposes, leveraging the receipt accrual functionality.

Periodically

Agency Business Systems, STMS

Florida PALM

POI007

Outbound Carry Forward Payable – Outbound interface to provide the agency established encumbered and unencumbered payables for Carry Forward purposes, leveraging the receipt accrual functionality.

Periodically

Florida PALM

Agency Business Systems, MFMP, STMS, Works

N/A

N/A

08/30/2024

Original Version