Budget management functionality that FOLIO needs to stay competitive
(UXPROD-3442)
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| Status: | Closed |
| Project: | UX Product |
| Components: | None |
| Affects versions: | None |
| Fix versions: | Poppy (R2 2023) | Parent: | Budget management functionality that FOLIO needs to stay competitive |
| Type: | New Feature | Priority: | P2 |
| Reporter: | Dennis Bridges | Assignee: | Joseph Reimers |
| Resolution: | Done | Votes: | 0 |
| Labels: | LC-priority1, LC1, LC1a, acquisitions, galileo, invoices, loc, needs-rmsigreview, orders | ||
| Remaining Estimate: | Not Specified | ||
| Time Spent: | Not Specified | ||
| Original estimate: | Not Specified | ||
| Issue links: |
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| Epic Link: | Budget management functionality that FOLIO needs to stay competitive | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Front End Estimate: | Medium < 5 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Front-End Confidence factor: | 80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Back End Estimate: | XXL < 30 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Back-End Confidence factor: | 60% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Development Team: | Thunderjet | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PO Rank: | 70.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rank: Cornell (Full Sum 2021): | R5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rank: Duke (Full Sum 2021): | R4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rank: MI State-Lib of MI (Sum 2021): | R1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Description |
Overview:Allow user to select previous fiscal years when approving an invoice such that payments or credits would impact a budget from a previous fiscal year. This is important for managing financial records and balancing budgets post rollover Use case:
see https://folio-org.atlassian.net/wiki/x/_ARU for more detailed use cases QuestionsIn-scope:
Approach:
Out of scope: |
| Comments |
| Comment by Lisa Smith [ 23/Dec/21 ] |
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After our first fiscal close in FOLIO, we have a period of about 2 weeks to make corrections and adjustments. Our numbers must match with the University numbers. To do this, we must be able to adjust expenditures by debiting/crediting in the invoice app, using the previous FY ledger. We also need to be able to adjust encumbrances in the POLs, using the previous FY ledger. |
| Comment by Lisa Smith [ 23/Dec/21 ] |
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Also, we may need to adjust appropriations if something was missed, and not noticed until fiscal close. |
| Comment by Dennis Bridges [ 23/Dec/21 ] |
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Lisa Smith by adjusting appropriations do you mean increasing or decreasing the allocated amount of a Fund? Or would you also use invoices to adjust appropriations? I am assuming by appropriation you are referring to a pool of money (Fund/Budget) you set aside for a specific purpose. Ie. a purpose other then acquiring material, Is this correct? |
| Comment by Kay Granskog [ 12/Apr/22 ] |
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Dennis Bridges Yes, we mean increasing or decreasing the allocated amount of a fund but it would most often be increasing the amount. We would not adjust the appropriation by paying an invoice. As for the last question, could you explain why the purpose of the money matters? It is the materials budget so it could be either payment for material or for services deemed appropriate for the materials budget. (Lisa Smith and Kay Granskog) |
| Comment by Dennis Bridges [ 12/Apr/22 ] |
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Thanks Kay Granskog, I am trying to determine exactly how you would expect these actions to impact the budget. So perhaps a better question is why are you updating last years budget? Do any of the following examples apply? Are there others? Eg. 1) There was an invoice that could not be paid on time but needs to be counted against last years budget. Eg. 2) There was a credit that was not processed in time to be counted against last years budget. Eg. 3) The value of an invoice that was processed against last years budget was not correct (Maybe the exchange rate was wrong) and money needs to be expended from last years budget to capture the delta.
It seems for the first two you may actually expect to add "payments" for these invoices to last years budget. Whereas for example 3 you may just add a debit that captures a total shortfall. For example missing pennies from 100 different invoices that need to be counted.
Thanks for your feedback! |
| Comment by Lisa Smith [ 13/Apr/22 ] |
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The reasons you list above are good possible examples. We also could encounter:
Mainly we would pay/unpay invoices or add, adjust appropriations, or transfer funds during what we call our '2nd close' in July. |
| Comment by Dennis Bridges [ 13/Apr/22 ] |
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Very helpful use cases, thank you Lisa Smith. It does seem that this functionality will need to include processing invoices AND adjusting fund totals (Transfers and allocations). Also, thank you for adding your priority above, I'm hoping we will hear from others shortly as well. |
| Comment by Dung-Lan Chen [ 21/Apr/22 ] |
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In addition to what's been mentioned by Lisa and others, I think it's important to have this feature put in place as it provides peace of mind to those who are in charge of fiscal year rollover and Acquisitions for their institution to know that recourse is available if they need process invoices against previous fiscal years and also helps to shorten the window that we have to keep current fiscal year open for cleaning up while we are already in the new fiscal year calendar wise. If this feature is needed, the sooner it's in place, the better off particularly for early FOLIO adopters in my opinion |
| Comment by Julie Brannon [ 22/Apr/22 ] |
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At Duke, we'll rank this feature as an R4 since our current system doesn't allow us an easy way to transact against budgets after the fiscal year ends. Our FY ends on June 30, so from July 1 until we perform rollover (usually in mid-July) we don't submit any order or invoice transactions since the next year's budgets aren't open until rollover runs. During that two-week interm period, if an issue is spotted in reconciling against our university AP system there is a way to process a transaction by changing the fiscal year temporarily, but this happens very rarely and is rather complicated, so it's not usual practice. We're double-checking with staff who manage library accounting to make sure we have an accurate understanding of this and will update here if needed. |