Budgetary control for accounts5020and5021has a budget of$90,000 USDeach for the year2012. The accounts also have balances onobligation of $10,000…

The "Encumbrance Year End Carry Forward" process is specifically designed to carry forward open obligations (encumbrances from purchase orders and requisitions) from the end of one budget year to the beginning of the next. It does not carry forward budget amounts, expenditures, or funds available balances. These are handled by separate year-end processes, such as the budget year-end carry forward. Therefore, only the $10,000 USD obligation for each account included in the rule will be moved to the 2013 budget year, liquidating the original encumbrance in 2012 and re-establishing it in 2013.

A. This is incorrect because the encumbrance carry forward process does not move budget, expenditure, or funds available balances; it only moves open obligations.
B. This process is specific to budgetary control and encumbrance accounting; it does not carry forward general ledger actual balances.
C. Expenditures are actual costs that have been incurred and are not "carried forward" as open commitments; they are part of the closing balance for the year.

1. Oracle Fusion Cloud Financials, Implementing Budgetary Control and Encumbrance Accounting, 23D. Chapter: Year-End Processing. Section: "Carry Forward Open Purchase Orders and Requisitions". The documentation states, "The process liquidates the outstanding encumbrance in the old budget year and reestablishes it in the new budget year." This confirms only encumbrances are processed.