You can manage unused budgets effectively by configuring the following customizable rules:
Rule 1: Complete Rollover– Carry forward the entire unused amount to the next cycle.
Rule 2: Complete Expiry– All unused budgets expire at the start of a new budget allocation cycle.
Rule 3: Complete Rollover with expiry– Carry forward complete unused budgets to the next cycle with an expiry date.
Rule 4: Partial Rollover calculated on Original Allocated Budget– Carry a percentage of the original budget (if unused) to the next period and set to expire on a specific date.
Example: Carryover was set to 50% (of the original budget).
Case 1:
- Initial Allocated Budget: $100,000
- Used: $20,000
- Unused: $80,000
The carryover amount is 50% of the original allocated budget:
50% * $100,000 = $50,000
Total Budget at the start of the next cycle:
$100,000 (initial) + $50,000 (carryover) = $150,000
Note: The carryover budget of $50,000 will expire on the set date of expiration.
Case 2:
- Initial Allocated Budget: $100,000
- Used: $80,000
- Unused: $20,000
The carryover is still 50% of the original allocated budget:
50% * $100,000 = $50,000
However, the unused budget in this case is $20,000. The carryover will be up to 50% of the original budget, but since more than 50% of the budget has been used, the unused amount ($20,000) is carried forward directly.
Total Budget for the next cycle:
$100,000 (initial) + $20,000 (unused) = $120,000
Note: The carryover budget of $120,000 will expire on the set date of expiration.
Rule 5: Partial Rollover calculated on Unused Budget: Carry over a percentage of the remaining budget to the next period, provided the budget holder has utilized a minimum percentage of the allocated budget in the previous period. The carried-over amount will then expire on a specified date.
Example:
Minimum Utilization Criteria: 30%
Carryover: 50%
Initial Allocated Budget: $100,000
Used: $40,000 (which is > 30%, so the utilization requirement is met)
Unused: $60,000
Since the minimum utilization is met, the carryover amount is calculated as 50% of the unused budget:
50% * $60,000 = $30,000
Total Budget at the start of the next cycle:
$100,000 (initial) + $30,000 (carryover) = $130,000
Note: The carryover budget of $130,000 will expire on the set date of expiration.
