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Internal Order budget for PO with GR and IR in different years

Former Member
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If a PO on an Internal Order was goods receipted in 2013, should an invoice receipt to that PO in 2014 require the IO to have a budget in 2014?


Thanks

Deepankar

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

If you have budget availability control set for invoices, then YES.

Also, if you have budget setup in KO22 year wise, then you would need a budget for 2014.

If you have an overall budget setup, then no.

Usually in case of budgets setup year wise, most businesses update it prior to the start of the new year. Is that not the case with your company?

-Amir

Former Member
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Hi Amir,

How can I check if the availability control is set for invoices or goods receipt in the system?

Thanks

Deepankar

Former Member
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GoTo.....IMG--->Controlling--->Internal Orders--->Budgeting and Availability Control

Here, in this menu are all the items you need for you IO budget setup. Answer to your specific question is 3rd option in this menu "Define Tolerance Limits for Availability Control"

Please make sure you also have other items setup as per your business requirement in order for the process to work as per your expectation.

Regards,

-Amir

Former Member
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Hi Amir and Mustafa,

I see that the transaction group is ++ i.e. all transaction groups. In my case, we created a PO in 2013 and did GR in the same year. Now, I want to do IR for that in 2014. I had budget available in 2013 and no budget in 2014. While doing IR in 2014, system says budget exceeded.

So, when exactly the budget is hit, at the time of PO, GR or IR?

Thanks

Deepankar

Former Member
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Hi Deepankar

It hits on all occasions (you asked above i.e. PO, GR & IR)

At the time of PO, commitments are recognised and hence budget hit

At the time of GR, commitments are reversed and actuals are posted and hence budget hit

At the time of IR, if GR value is not equal to IR value, then again differences are posted and hence budget is hit.

Regards

Mustafa

Former Member
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Hi Mustafa, from your reply, I understand that

Budget - 1000 in 2013

At the time of PO of amount 100, Budget assigned is 100.

At the time of GR of amount 70, budget will be reversed and hence assigned is only 70 now, right?

At the time of IR of amount 50, assigned budget reduces to 50 only, right?

Now, when I go and post an IR of amount 20 in the next year, it will hit the budget in 2014?

Please help understanding this.

Thanks

Deepankar

Former Member
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Hi Deepankar

It depends on UoM Config, whether its commitment is value based or Quantity based.

Lets say in your case its Quantity based

So Budget is 1000 in 2013 & 0 in 2014

Year 2013

PO Rasied - Commitments recognised is 100 so Budget now available is 900 (1000 - 100 : unassigned)

GR done for FULL Quantity - Commitments reversed, GR posts actual costs to the extent of 50

So budget now available is  950 [1000 - (100 - 100) - 50]

Yeat 2014

IR Raised for FULL Quantity - Reduction in Actual costs (70-50). So budget now available is -20 [0 - 20] and therefore you are getting the budget exceeded error because budget is now 0 for year 2014.

If you would have manually set budget for 2014 or carry forward unutilised budget of 2013 i.e. 950, then the situation for 2014 would be that Budget available is 930  [950 -20]

In case of value based commitments (service based), it would only do arithmetic with the values and disregard Quantitative analysis.

Hope it helps

Regards

Mustafa Sakerwala

Former Member
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Hi Mustafa,

Thanks for the reply. I did my testing today and found the below:-

1) Budget hit at the time of PR in 2013 with the amount of the PR (1750), so assigned budget is 1750 in KO23.

2) Budget hit at the time of PO in 2013 with the amount of the PO, PO created with 1600 so 150 amount reversed from the assigned budget in KO23.

3) GR done with the full quantity in 2013 and no impact on the budget in KO23 at this time.

4) Partial IR done, no impact on the budget in KO23

5) Rest of IR done in 2014, there is again no impact in KO23

So, my understanding is that the budget is booked at the time of PO it self and there should be no impact if IR is done in the next fiscal year as tested.

In my user's case, this is not the same, he gets the error that budget exceeds in 2014. Any help what else can I look into. Or, if Overall budget amount also has a role to play in this case.

Thanks

Deepankar

Former Member
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Hi Deepankar

The Impact of IR would be nil if IR Value is equal to GR value.

In your test example, assuming you had set the budget at 1750, try booking an IR in 2014 for a value greater than GR value of 1600. As per my earlier explaination, the posting for differences will lead to the error that you are looking for.

Please note, that the above will hold true only in case you have set budget at Annual level and NOT Overall level. If set at overall level, then it will always consider 1750 as total budget irrespective of the years.

Please check and let me know

Regards

Mustafa Sakerwala

Former Member
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Hi Mustafa,

Yes, we have budget set for annual values only. Also, the IR value is definitely not equal to GR but we did a partial IR i.e. IR value less than the GR amount in the previous year and then the balance amount we are doing in the next fiscal year. So, in any case IR value is not greater than the GR value.

Thanks

Deepankar

Former Member
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Hi Deepankar

If you club both the IR values, does it exceed GR value.

Regards

Mustafa

Former Member
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Hi Mustafa,

No, GR amount = IR(in 2013) + IR(in 2014, system not allowing to post).

actual Scenario:-

PO raised for 2,288$ on 17.10.2013, delivery date 18.10.2013. [ fiscal year 2013]

GR done for 2,288$ on 23.10.2013 [ fiscal year 2013]

IR done for 921.60$ on 23.12.2013 [ fiscal year 2013]

Now IR is to be done for balance amount i.e. 1336.4$ on 08.01.2014 [ fiscal year 2014]

Budget data:-

On posting IR, the error comes as :-

In document item 005 Order 637463, budget for fiscal year 2014 was exceeded by 0.70 GBP.


Any help on this is highly appreciated.


Thanks

Deepankar

Former Member
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All amounts are actually in GBP so you may please read $ as GBP above there. Typing mistake.

Former Member
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Hi Deepankar

1) I dont see Budget of 5000 for the year 2014. Only 10000 is distributed to year 2013 out of the total of 15000

2) Secondly, what is the Quantity & Amount you are entering while processing miro transaction (you say 1336.4 above, but I think you meant to say 1366.4)

3) Assigned values for Year 2013 are greater than 2288$  suggesting other dependencies (PO, costs etc) as well. Can you check those as well.

Regards

Mustafa Sakerwala

Former Member
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Hi Mustafa,

When PO is created, I understand that at that time, budget is booked and adds to the value of assigned budget. The quantity is .597 and the amount is yes, 1366.4.

So, even if assigned budget is more than 2288, in my understanding, the POs created earlier are responsible for this but should not impact the IR in my case.

Thanks

Deepankar

Former Member
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I have also tested the same scenario in test system and did not get any error. The budget was not assigned in that case for 2014 yet the posting was successful.

Screenshots from test system...

KO23 for the order, pls ignore the amount of 1200 in 2014 as I created the PO in that fiscal year only.

Thanks

Deepankar

Former Member
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Hi Deepankar

The reason why it worked is that the first IR was done with correct valuation for the Quantity invoiced i.e. @ 625 [1250 (total value) / 1 (Total Quantity)] * 0.5 (Invoice Quantity)

In your case, the value for first IR is understated i.e. it should have been 922.06 [(2288 / 1) * 0.403

In this case Actuals was reduced to the extent of - 0.46 (922.06 -921.6). However this was all in 2013. Since it reduces the value, budget had no problem.

In 2014, when you are doing IR for Balance 0.597, the value should be  1365.94 (2288/1)*0.597. However since you are entering the value as 1366.4, Actuals costs are added to the extent of 0.46 (1366.4-1365.94). Since it adds value, Budget is hit and therefore not allowing you to post for the year 2014.

Though it suggests 0.7 as exceeded, I believe this is the correct calculation. Experts can correct me, if I am wrong

Alternatively, please look at Ajay's suggestion in the following thread

Do remember, Original Budget is always set with KO22

Assigned Budget = Commitments (PR+PO) + Actuals [GR + IR (Difference posting: IR vis-a-vis GR)]

If Assigned budget is morethan budget set in KO22, it will result in budget exceed error.

PR Commitments are reversed, when PO is created

PO Commitments are reversed, when GR is created

GR Actuals are not reversed, when IR is created

Differences between IR & GR are only posted and has an impact on budget.

Hope it helps

Regards

Mustafa

Former Member
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Hi Mustafa,

This really helped a lot. One more query, say GR was done for Rs. 100 and now IR is received for Rs. 110. How to accommodate this excess of Rs. 10.

Thanks

Deepankar

Former Member
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Dear Deepankar

Considering your case, if IR is done in 2014, you should either carry forward previous years, unutilised budget or set manually budget for the year 2014.

As a year end closing procedure, you should always carry forward budget using Tcode KOCO & carry forward commitments using tcdoe KOCF


Also always see that your overall Budget valeus tie up with your annual budgets to avoid any inconsistencies.

Hope it helps

PLease close the thread if your issue is resolved.

Regards

Mustafa

Former Member
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Thanks Mustafa for your help on this.

Answers (2)

Answers (2)

ajaycwa1981
Active Contributor
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Hi Deep

No, you dont need Budget in 2014, if GR (expense) is already incurred in 2013

Unless in MIRO you have some Price difference, which will post to the same IO, you dont need any budget in 2014... However, if GR itself is pending in 2013, then you need to carry forward commitments to next year (KOCO or KOCF)

Br, Ajay M

Former Member
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Hi Ajay,

In my case, we did the GR and then partial IR in previous year. Now, doing the IR in this year so system is giving the eror that budget is exceeded. We dont have any budget in 2014 but in 2013.

Should it not check for the budget in 2013 and post or how it works?

Thanks

Deepankar

Former Member
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Hi Deepankar

It depends on whether you are using budget on Annual Values or Overall values. This is set in Budget profile (OKOB) which is maintain at Internal Order Type Settings (KOT2).

If you have annual values, then best practice is to carry forward unutilised budget of past year to current year. In that case, you need not maintain anything again except supplementary budget.

If however this is not the case, then you may need to maintain it for 2014 manually for the +/- differences postings (i.e. difference between GR & IR amount).

If you have overall values for budget, then no need to maintain it, budgetary control will aggregate the values posted including commitments for budget purpose.

Hope it helps

Regards

Mustafa