FIN2008 Prakhina Leverage Budget Management
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Transcript of FIN2008 Prakhina Leverage Budget Management
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2008 Wellesley Information Services. All rights reserved.
Leverage BudgetManagement Functionality
in SAP to AdministerBudgets for Projects,Internal Orders,and Cost Centers
Michael PrakhinaLazar Consultants
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In This Session
This session examines strategies for configuring and
deploying SAP applications to support BudgetManagement scenarios
Review functionality available across the SAP landscape
to manage budgets and receive best practices for
streamlining the budgeting processes for projects,
internal orders, and cost centers
Get a handle on budgeting for more than one currency
Examine the prerequisites for budget allocation and walkthrough configuration of Budget Management
functionality for projects and internal orders
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In This Session (cont.)
Learn how to compare actual postings versus budgets
using cost center budget planning functionality Understand the impact that purchase order and invoices
have on budget through Commitments Management
Get unique tips for displaying budget line items, andlearn how to run budget update reports
Get tips for approving and releasing the budget on the
Internet
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What Wel l Cover ...
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control
Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
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What Is Budgeting?
Budget is the device by which management approves
the expected development of order costs over a giventimeframe
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Planning vs. Budgeting
5
You administrate the approved cost framework for anorder or an order group using Budget Management
You can enter the order budget manually or copy budget
information from any plan version
The budget is the
approved coststructure for anorder or a project
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Budget Types
Original budget
This is the budget originally assigned, before any updates weremade.
Budget updates Unforeseen events, additional requirements, for example, price
rises for external activi ties, and so on. This may mean you needto update the original budget, in the form of:
Supplements
Returns
Current budget This is derived from the budget types
already mentioned:
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How Budgeting Works
To create a budget for an order, you must define a budget prof ile and assign it
to the order type
The budget profile defines the parameters for budgeting
In Customizing, you must define a number range for your budget documents
When you save the budget, the system checks that the sum of the annual
values matches the overall value for the order
Order: 400010
Budget Line ItemsOrder 400010 Chicago Trade Fair
Document Year Activity Amount ...
Total 2000 19,000
Original CurrentBudget Budget
Overall 40,000 50,000
2000 15,000 19,0002001 15,000 18,0002002 2,000 3,0002003 3,000 4,000
030000001 2000 Original 15,000
030000200 2000Supplement 5,000
030000306 2000Return 1,000-
You can: Update and make changes
to the budget
Freeze the budget using
status management
Display the budget line
items from the budgetscreen
Enter text for budget line
items to provide supporting
information for the budget
transaction
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Define Budget Profile
To create a budget for an order, you must define a
budget profi le and assign it to the order type
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The budgetprofile definesthe parametersfor budgeting
Is AvailabilityControl activatedmanually orautomaticallyduring budgeting?
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Things to Remember
The budget represents the funds approved by the
management. The budget types include the originalbudget, budget updates, and the current budget.
Line items are recorded for updates to the order budget.
To create a budget, you must define a budget profile andassign it to the order type or the project definit ion.
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What Wel l Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control
Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
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What Is Availabil ity Control?
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As an order or project is executed, business events are recorded that call uponavailable funds
These events result in the posting of actual costs and commitments to the order
or project
Commitments represent obligations that lead to actual costs through subsequent
business events; e.g., a purchase order may result in a CO commitment
Is availability control
active?
For which transactionswill availability controlapply?
What are the tolerancelimits?
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How Budgeting Works with Availability Control
Use tolerances to
define how the
system should
respond to a given
degree of budget
overrun
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Budget Carry Forward
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You can transfer unusedfunds to the next fiscal yearusing the budget carry
forward function SAP carries forward the
difference between thebudget and actual amountsfor the year specified
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Budgeting in Different Currencies
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You can choosedifferent currenciesto enter your budget
All budget items are
converted and savedautomatically in thecontrolling areacurrency and theobject currency
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Things to Remember
Unused budget amounts can be carried forward to the
next fiscal year. ERP system can perform active availabil ity checks when
the order is debited. The ERP system checks whether
the order budget is adequate for the actual posting or
commitment.
In Customizing, you specify the system response if
tolerance levels were exceeded.
Budget can be entered in the controlling area currency,object currency, or a user-defined currency.
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What Wel l Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control
Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
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About Commitments Management
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By recording commitments as well as actual costs, you can
compare the funds you have allocated to your budgeted cost to
determine funds availability
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Commitments Carry Forward
You can carry forward open commitment values into the
first period of the next fiscal year as part of year-endclosing
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Types of Commitments Management
There are three types of commitments, depending on
the account assignment object: Order commitment
The commitment is initially assigned to an order
Cost center commitment
The commitment is initially assigned to a cost center
Project commitment
The commitment is ini tially assigned to a project or to a
work breakdown structure element
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Activate Commitments Management
You activate Commitments Management:
For each controlling area from a chosen fiscal year For orders per order type
For cost centers
For cost centers per cost center type
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Tip
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Commitments Reports
In addit ion to the actual values and budget values, this
report displays commitment values
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Things to Remember
Commitments are specific goods ordered for an internal
order, a cost center, or a project A purchase order commitment is created that is
equivalent to the purchase order value
Commitments are reduced by business transactions(such as goods receipts) and actual costs are incurred
by the corresponding account assignment object
At year-end closing, you can carry open commitment
values
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2323
What Wel l Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
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Define a Budget Profile for Cost Centers
You create a budget profile to specify technical and
administration values for budgeting by cost center
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Maintain Cost Center Budget Information
Entering cost center budget is simple! You can enter i t
manually, copy/paste, or just simply upload from
spreadsheets 25
You canmanually enter
budget for costcenters
Use Excel toupload valuesautomatically
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Cost Center Budget Planning in Excel Type Report
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Cost Center Budget and Commitments Reports
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Via the Report/ReportInterface you canbranch to the CostCenters: Actual LineItems report
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Budget Upload Using Excel
To be able to upload the files, you must specify the characteristic
values in the lead column of the corresponding planning layout. It
is not enough to simply specify the characteristic text.28
You can uploadbudget values from
Excel
You can copy actualcosts or otherplanning profiles toyour budget
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Things to Remember
The simplest way to define budget information is to enter
amounts into the Cost Center Budget Planning screenfor each cost center
All reports in SAP ERP 6.0 are embedded into Excel
You can upload budget information by using regular flat
files from your PC
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3030
What Wel l Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
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Assign Budget Profi le to Internal Order
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You assign BudgetProfile to Internal OrderType.
You can allocate budgetafter the Createdstatusis reached. If you want
to prohibit budgetallocation in the Createdstatus, you need todefine a user status.
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Change Budget for Internal Order
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You can manually enter a budget per internal order orper order group
Internal order commitments will reserve funds
You can use Excelto upload values
automatically
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Internal Orders Commitments Reports
This report enables the internal orders manager tocompare budgeted and allotted costs on internal orders.
It also includes postings on statistical internal orders.
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Things to Remember
In order to budget by internal order you have to assign a
budget profi le to an internal order type You can manually enter budget information or upload
using Excel
All predefined SAP reports display budget, actual, and
commitments values
In order to report in a number of different currencies,
you have to develop new reports or change existing
reports
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3535
What Wel l Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
f f
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Enter Budget Information for Projects
You can enter or use Excel upload to import budget
amounts per project or for WBS elements
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A i B d ti P fi l t th P j t D fi iti
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You should not maintainbudget profile if you
use Budget ControlSystem (BCS)
Assign Budgeting Profi le to the Project Definition
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Tip
You store a budgetprofile or order type inthe project definition
The period of timeduring which budgetingis allowed
Whether budgeting is
allowed for total annualvalues, and/or annualvalues
R l i th B d t
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Releasing the Budget
You can release budget on a total or an annual level
The release is based on the current budget, meaning theoriginal budget changed by supplements, returns, or
transfers 38
Release
B d t F i C R l l ti f P j t
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Budget Foreign Currency Recalculation for Projects
Regardless of which currency you use for budgeting,
the system always translates the entered planning andbudget line items into the controlling area currency
and object currency and updates the values in both
currencies39Tip
C i t Ch k
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Consistency Check
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Consistency check of
plan/budget Transfer of p lan to
budget
Mass release of
budget for projects
Currencyrecalculation for
plan/budget
The consistency checks you activated are run in the
background when you post or pre-post a budget amount
B d t C F d f P j t
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Budget Carry Forward for Projects
You cannot carry
forward a negative
budget into thefollowing year
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P j t B d t d C it t R t
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Project Budget and Commitments Reports
Using the navigation menu, you can break down a report by a number of
features, such as business transactions
You can report overall budget as well as budget commitments information
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Drilldown
Thi t R b
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Things to Remember
The budget is carried forward on the basis of the values
in the currency defined in the budget profile To budget a project, you can transfer the values from
cost planning as a budget; you can also enter the
budgets directly in the WBS elements
You can release a budget on a total or an annual level
(providing budgeting using total or annual values is
included in the budget profile)
You can display totals records for supplements, returns,and transfers for projects
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What Wel l Co er
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4444
What Wel l Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
Web Enabled Budget Requests
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Web-Enabled Budget Requests
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Request for
Budget Request(scenario SR61)
Budget Requestwith Approval
(scenario SR62)
In SAP ERP 6.0 theremultiple predefinedWeb-Enabled forms
such as this one.Components Internet/
Intranet ServicesInternal Service Request Scenario Definition
Define Scenarios
Internal Tasks
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Internal Tasks
You can define a follow-up action for an Internal Task that wil l
automatically be triggered and executed by the system A follow-up action can call one or more function modules that
execute specific funct ions (for example, printing or calling up a
transaction)
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Document Flow
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Document Flow
The document flow allows you to identify:
Preceding documents Documents from which the current notification originated
Subsequent documents
Documents that originated from the current notification
To-and-from references between documents Document number
Addit ional data (if available)
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Things to Remember
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Things to Remember
You can define Web-enabled scenarios for recurrent
internal service requests Budget scenarios SR61 and SR62 are predefined and
can be used as templates
You can assign workflow tasks and display document
flow to list corresponding documents assigned to a
budget request
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What Wel l Cover
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49
What We ll Cover
Overview of Budget Management in SAP ERP 6.0
Availabil ity Control Commitments Management (CO)
Budget Management for Cost Centers
Budget Management for Internal Orders Budget Management for Projects
Web-Enabled Budgeting in SAP ERP 6.0
Wrap-up
Useful Reports
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Useful Reports
Calling up Cost Element Reports for Order Commitments Choose Accounting Controlling Internal orders Information system
Reports for internal orders Plan/Actual comparisons Additional keyfigures Order: Actual/Plan/Commitments.
Reports for Cost Center Commitments Choose Accounting Controlling Cost Center Accounting
Information system Reports for Cost Center Accounting Plan/Actual
comparisons Additional key figures Cost centers: Actual/Plan/Commitments.
Calling up Cost Element Reports for Project Commitments Choose Accounting Project System Information System
Controlling Costs Plan-based Hierarchical Plan/Actual/
Commitments/Rem. Plan/Assigned. To display totals records for supplements, returns and transfers
Choose Logistics or Account ing Project System Information System Controlling Costs Budget related Budget updates
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Budgeting Transactions
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Budgeting Transactions
KPZ2 Cost Center Budgets Change
KO22 Internal Order Budget Change
CJ30 Project Budget Change CJCO Project Budget Carry Forward
CJCF Project Carry Forward Commitment
CJCO Project Budget Carry Forward
IMCCP3 Transfer Plan to Project Budget
IMCOC3 Plan/Budget Consistency Check for Projects
KO30 Activate Availability Control
KOCO Internal Order Budget Carry Forward
KOCF Internal Order Commitment Carry Forward
IMCCP4 Transfer Plan to Order Budget KSCF Cost Center Commitment Carry Forward
KP06 Change Cost Center Budget Cost, Activity Inputs, and Cost Elements
IMCOC4 Plan/Budget Consistency Check for Orders
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Budgeting Menu Paths
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Budgeting Menu Paths
To define Budget Profile for Cost Centers in
Customizing, choose: Controlling Budget Management Budget Management
Define Budget Planning Profi les
To define Budget Profile for Internal Orders inCustomizing, choose: Controlling Internal Orders Budgeting and Availability
Control Maintain Budget Profile
To define Budget Profile for Projects in Customizing,choose: Project System Costs Budget Maintain Budget
Profiles
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Budgeting Menu Paths (cont )
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Budgeting Menu Paths (cont.)
Another ways to assign a budget profile to a project:
As a default in Customizing under Project System Costs Budget Maintain Budget Profile
In the profi le data of a standard project definition under
Accounting Project System Project Special
Maintenance Functions Project Structure Planning Project Definition Create Control tab page Group box
Accounting Budget Profile
In the profi le data of a project definition in Customizing under
Project System Structures Operative Structures
Project Structure Plan Create Project Profile
Resources
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5454
Resources
SAP Service Marketplace*
Cost Center and Internal Order Accounting http://service.sap.com/~form/sapnet?_SHORTKEY=01200252
310000079805&
SAP Help Portal
http://help.sap.com/erp2005_ehp_03/helpdata/EN/a9/ab7f68414111d182b10000e829fbfe/frameset.htm
SAP Developers Network
www.sdn.sap.com/irj/sdn/bpx-forums
* Requires login credentials to the SAP Service Marketplace
7 Key Points to Take Home
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5555
7 Key Points to Take Home
You can budget by cost center, internal order, and
project The main configuration feature is to create and assign a
budget profile
All reports are Excel-enabled
You can upload budget information into SAP from Excel You can display, enter, and request budget information
over the internet/intranet
You can monitor your budget spending with
Commitments Management
Availabil ity Control feature prevents you from spendingunapproved funds
Your Turn!
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Your Turn!
How to contact me:
Michael Prakhina