How do I calculate spending policy?
  • 30 Jan 2023
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How do I calculate spending policy?

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Article summary

I have my spending policy codes set up and need to know how to calculate the spending policy.

Answer:
Note: Before running the Spending Policy Calculation, Spending Policy codes are usually set up and applied to Funds involved in the calculation. Refer to FIMS Help Online for more information regarding implementing Spending Policy and setting up Spending Policy codes.
Spending Policy

Calculate Spending Policy using the following steps:
  1. Select View > Spending Policy > Spending Policy Calculations. The Spending Policy Calculations window opens.
  2. Click on the Calculation Source radio button.
  3. Enter the G/L Year the calculation is being based on and the Year the Spending Policy is being applied.
  4. Check on Printer Quarter Detail, if you want to print the quarter detail (recommended, especially the first time you run the calculation).
  5. Select the Evaluation Method. (Click on Help at the bottom right for explanation of evaluation methods).
  6. Select the Rounding method by clicking on the appropriate radio button.
  7. (Optional) Select the funds for which you would like to run Spending Policy.
  8. Select the Spending Policy code or range of codes you would like to run.
  9. (Optional) Select Fund Types (optional).
  10. Enter the G/L accounts you would like to be used in the spending policy calculation, if they have not already been entered. 
  11. Click OK to run your spending policy calculations.
When the report opens, you will get a message to review the report and select "Create Spending Policy" from the menu-bar to continue. Click OK and review your spending policies. If you agree with the calculations, you can then create your spending policies by clicking on the Create Spending Policy link on the menu-bar. Doing this adds the calculated number to the Cash Requirement field on the Fund record. It does not update General Ledger. Calculated amounts can be manually updated and journal entries can be created to track the available amount in General Ledger.

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