Rollover Policies
How unused budget carries forward to the next period
Rollover Policies
Rollover policies determine what happens to unused budget when a period ends. You can let unused funds expire, carry over partially, or carry over completely.
Rollover Policy Options
| Policy | Behavior | Configuration |
|---|---|---|
| None | Unused budget expires - starts fresh each period | No additional settings |
| Partial | A percentage of unused budget rolls over | Set rollover percentage (1-100%) |
| Full | All unused budget rolls over | Optional: set maximum cap |
How Rollover Works
At the end of each period, the system calculates the rollover amount:
Rollover Calculation Steps
- Check remaining balance - If zero or negative, no rollover occurs
- Apply policy - None returns zero; Partial applies percentage; Full uses entire remaining amount
- Apply maximum cap - If configured, limits the rollover to the cap amount
- Create next period - New period starts with base amount plus rollover amount
None (No Rollover)
With No Rollover, each period starts fresh with only the base amount.
Example
Budget: $5,000/month, No Rollover
| Month | Base | Rollover | Total | Spent | Remaining |
|---|---|---|---|---|---|
| January | $5,000 | $0 | $5,000 | $3,200 | $1,800 |
| February | $5,000 | $0 | $5,000 | $4,500 | $500 |
| March | $5,000 | $0 | $5,000 | $2,100 | $2,900 |
The $1,800 remaining in January was lost. February started fresh with $5,000.
When to Use
- Use it or lose it philosophy
- Encourage timely spending
- Predictable monthly costs
- Prevent accumulation of large unspent amounts
Partial Rollover
With Partial Rollover, a configured percentage of unused budget carries forward.
Example
Budget: $5,000/month, 50% Rollover
| Month | Base | Rollover | Total | Spent | Remaining | 50% for Next |
|---|---|---|---|---|---|---|
| January | $5,000 | $0 | $5,000 | $3,200 | $1,800 | $900 |
| February | $5,000 | $900 | $5,900 | $4,500 | $1,400 | $700 |
| March | $5,000 | $700 | $5,700 | $2,100 | $3,600 | $1,800 |
50% of January's $1,800 remaining ($900) rolled over to February.
Configuration Options
| Setting | Description | Range |
|---|---|---|
| Rollover Percentage | What percent to carry forward | 1-100% |
| Maximum Rollover Amount | Cap on rollover amount (optional) | Any positive number |
Example with Maximum Cap
Budget: $5,000/month, 100% Rollover (Partial), Max $1,000
| Month | Remaining | Calculated Rollover | Capped At | Actual Rollover |
|---|---|---|---|---|
| January | $3,000 | $3,000 | $1,000 | $1,000 |
| February | $2,500 | $2,500 | $1,000 | $1,000 |
| March | $800 | $800 | $1,000 | $800 |
When to Use Partial
- Balance between flexibility and reset
- Reward efficient spending while limiting accumulation
- Smooth out spending variations across periods
- Maintain some budget discipline
Full Rollover
With Full Rollover, all unused budget carries forward to the next period.
Example
Budget: $5,000/month, Full Rollover
| Month | Base | Rollover | Total | Spent | Remaining |
|---|---|---|---|---|---|
| January | $5,000 | $0 | $5,000 | $3,200 | $1,800 |
| February | $5,000 | $1,800 | $6,800 | $4,500 | $2,300 |
| March | $5,000 | $2,300 | $7,300 | $2,100 | $5,200 |
Budget accumulates over time if spending is consistently under the base amount.
Example with Maximum Cap
Budget: $5,000/month, Full Rollover, Max $3,000
| Month | Remaining | Full Rollover | Capped At | Actual Rollover |
|---|---|---|---|---|
| January | $1,800 | $1,800 | $3,000 | $1,800 |
| February | $2,300 | $2,300 | $3,000 | $2,300 |
| March | $5,200 | $5,200 | $3,000 | $3,000 |
The cap prevents excessive accumulation while rewarding consistent under-spending.
When to Use Full
- Maximum flexibility for employees
- Encourage saving for larger trips
- Infrequent travelers who accumulate budget
- Trust-based spending culture
Full rollover without a cap can lead to large accumulated balances. Consider setting a maximum rollover amount to prevent budget distortion.
Rollover for Per User vs Shared Pool
Rollover calculation differs based on allocation type:
Per User Budgets
Rollover is calculated individually for each user:
| User | Jan Remaining | Rollover (50%) | Feb Total |
|---|---|---|---|
| Alice | $1,800 | $900 | $5,900 |
| Bob | $200 | $100 | $5,100 |
| Carol | $4,000 | $2,000 | $7,000 |
Each user's rollover is based on their personal remaining balance.
Shared Pool Budgets
Rollover is calculated at the pool level:
| Pool | Base Amount | Jan Remaining | Rollover (50%) | Feb Total |
|---|---|---|---|---|
| Marketing | $15,000 | $6,000 | $3,000 | $18,000 |
The February total is $15,000 (base) + $3,000 (rollover) = $18,000. All users share the increased pool.
Rollover Timing
Rollover processing occurs during the daily period rollover job:
- Job runs daily (typically at midnight)
- Finds budgets with periods that ended yesterday
- For each budget:
- Calculates rollover based on policy
- Closes the old period
- Creates new period with rollover applied
- For Per User budgets:
- Calculates individual user rollovers
- Creates new UserBudgetPeriod records
If a budget's period ended today, the rollover will be processed tomorrow. There's no delay in user access - the new period is available immediately after processing.
Viewing Rollover History
Administrators can see rollover amounts in the period history:
| Period | Dates | Base | Rollover | Total | Spent |
|---|---|---|---|---|---|
| Period 1 | Jan 1 - Jan 31 | $5,000 | $0 | $5,000 | $3,200 |
| Period 2 | Feb 1 - Feb 28 | $5,000 | $900 | $5,900 | $4,500 |
| Period 3 | Mar 1 - Mar 31 | $5,000 | $700 | $5,700 | - |
The Rollover column shows how much was carried forward from the previous period.
Best Practices
Choosing a Rollover Policy
| Goal | Recommended Policy |
|---|---|
| Encourage spending each period | None |
| Balance flexibility and discipline | Partial (25-50%) |
| Reward frugal spending | Full with cap |
| Maximum employee flexibility | Full (no cap) |
| Predictable budgeting | None or Partial with low % |
Setting Maximum Rollover
If using Partial (100%) or Full rollover, consider setting a cap:
- Low cap (1x base): Prevents more than one month's accumulation
- Medium cap (2-3x base): Allows saving for significant trips
- High cap (6x+ base): Maximum flexibility, rare intervention
Monitoring Rollover Trends
Watch for these patterns in period history:
- Consistent large rollovers: Users may not need as much budget
- Zero rollovers: Budget may be too tight
- Rollovers hitting cap frequently: Consider increasing cap or reducing base
Related Topics
- Budget Periods - How periods work
- Allocation Types - Per User vs Shared Pool impacts
- Creating Budgets - Configure rollover in budget setup