Reversing a budgeted bill

If you reverse a budgeted bill from a plan year that has already been settled, you must also create a manual adjustment for the amount of the variance. Reversing a budgeted bill reverses the budgeted amount, not the actual charges, so the variance also must be reversed.

If the plan year hasn’t been fully settled, the variance from the reversed bill is removed from the cumulative variance for the plan year In other words, the account hasn’t been billed for the variance, so the amount of the reversed variance can be subtracted from the amount to be billed. If the plan year has been settled, the account will already have been billed for the variance, so you must adjust the amount manually.

If the plan is partially settled, so that there are one or more unbilled scheduled settlements, the reversed variance is divided proportionally and subtracted from those settlements. If you then recreate the bill, it will be for the budgeted amount if the plan year hasn’t been fully settled, but it will be for the actual amount if the plan year has been settled.