The Budget Adjustment (BA) document is used to record income and expense transactions not processed through other e-docs, against an existing budget. It can be used to modify a base budget, a current budget or both. It is a financial planning tool that allows an organization to adjust the current and base budget figures for a given account as circumstances may change throughout the fiscal year. It may be used to create a budget for a new account established after the beginning of a new fiscal year.
• Base budgets are established during the budget construction process, and designate an ongoing fiscal commitment.
• Current budgets designate budgetary authority for the current fiscal year.
• A BA document is normally used to:
o reallocate current budget as necessary throughout the fiscal year
o transfer funds from one general fund account to another
o establish budget lines in new accounts created after the fiscal year begins
o make long-term adjustments to the base budget
• The document allows for the establishment of monthly budgeted amounts for users that wish to maintain budget information at this level.