What Is an Expense Limit?

The funding limit is the amount allocated by the financial department to the user unit within the approved annual budget within the approved annual budget. Within the limits, each unit of use of funds shall, in accordance with the purposes specified in the budget, handle the transfer or expenditure through the bank. The People's Bank of China reports to the financial department at the end of each month and handles the settlement with the financial department at the end of each month. The financial department issues the appropriation voucher based on the monthly limit expenditures of each user unit reported by the bank, and informs the treasury to The money is transferred to the bank at one time. At the end of the year, the balances of all quota appropriation units will be automatically cancelled by the bank that opened the account. In order to calculate the funding limit, a limit appropriation account should be set up in the general budget accounting. The payer of this account records the limit of the amount allocated to the bank by the government agency; the receiver records the budget expenditure. The payer's balance reflects the amount of the limit appropriation that each unit has not yet reimbursed. ^[1]

Funding limit

Right!

The funding limit is the amount allocated by the financial department to the user unit within the approved annual budget within the approved annual budget. Within the limits, each unit of use of funds shall, in accordance with the purposes specified in the budget, handle the transfer or expenditure through the bank. The People's Bank of China reports to the financial department at the end of each month and handles the settlement with the financial department at the end of each month. The financial department issues the appropriation voucher based on the monthly limit expenditures of each user unit reported by the bank, and informs the treasury to The money is transferred to the bank at one time. At the end of the year, the balances of all quota appropriation units will be automatically cancelled by the bank that opened the account. In order to calculate the funding limit, a limit appropriation account should be set up in the general budget accounting. The payer of this account records the limit of the amount allocated to the bank by the government agency; the receiver records the budget expenditure. The payer's balance reflects the amount of the limit appropriation that each unit has not yet reimbursed. ^[1]

The funding limit is the fund balance accounting subject stipulated by the Ministry of Finance's "Public Administrative Unit Budget Accounting System." The transfer limit, the return limit of the affiliated unit and the bank recovery limit with budget funds shall be recorded in the recipient of the undergraduate program. Expenditure, transfer to the affiliated unit limit and return of the upper unit limit shall be recorded as the payer of the undergraduate program. The balance of the recipient indicates the balance of the fund limit. After the year-end balance is actively cancelled by the bank, the cancellation amount is also recorded in the payer of the undergraduate program. There will be no balance after cancellation. ^[2]

Receiving funding limits from financial departments at the same level:

Collection: Funding

Collection: funding limit

Transfer of funds to affiliated units:

Pay: allocate funds

Pay: funding limit

To handle the expenses of the unit:

Pay: expenditure

Pay: funding limit

Return the funding limit to the financial department at the same level:

Pay: allocate funds

Pay: funding limit