Budgetory Commitment Items for Recon. accounts

[former_member220526]

Hi Experts,

I have a requirement of budgeting trade creditors in SAP. Currently in our legacy system we are budgeting trade creditors as well as expenses.

Now as per SAP point of view my understanding is that we can only budget expense and revenue items. But for recon. accounts like vendor and customer, budgeting is not possible in SAP. I tried creating a commitment item for vendor recon. account with financial transaction 30 and commitment item category 3 and the same was assigned to recon. account in FS00. I posted budget in this commitment item with reference to fund and fund center through FMBB(T.code). Budget category "payment" was used for posting this budget and budget was successfully posted. Now when i tried to post the invoice to vendor, the system asks me to enter fund and fund center in vendor line item as well. i provided the fund and fund center in vendor line item to which i posted budget earlier in FMBB. the document gets posted without any error but when i view the budget consumption report instead of deducting invoice amount from the  consumable budget amount and show the net available budget system add this in the consumable budget and shows the net result as bellow:

can any one guide if budgeting of such item is possible in sap FM or can we just budget P/L items? need your guidance please.

[iklovski · Accepted solution]

Hi,

You can budget whatever account you want, but within reason. Creating budgetary commitment items for reconciliation accounts does not make much sense. What is the purpose of this action? Why the budget is not checked on the counterpart?

Regards,

Eli

[former_member220526]

Hi Eli

this is the current budgeting structure at client.. beside expenses they also maintain budget for their trade creditors as well. they allocate budgets to the vendor for their payments. how much payments have been made to vendors. how much payments can be made to vendors. this is te requirement i got so far from user.

Regards,

[iklovski]

This is more for treasury and cash flow modules, I presume. In any case, I hardly see someone stopping the payment to vendor, because the 'budget' on paying him is exceeded. Not mentioning the fact, that budgeting reconciliation account, will mix all vendors belonging to this group in one big black box. If your client wants to control payment budget aside from commitment budget, this could be achieved, but budgeting reconciliation accounts is against the logic.

[former_member220526]

Hi Eli,

i have further discussed this with client and found that their requirement is budgeting of receipts and payments strictly. the do require revenue and expense budgeting as well but their main focus is on receipt and payments. means that they want  they allocate the budget to trade payable. now when payment is made to vendor this budget will be consumed. by this they will be able to see how much payment can be made to vendors and how much payments have been made. can this be catered in Funds management or is there another module in sap for this?

Regards,

[iklovski]

Hi,

Payments made to a vendor can be tracked through FI/FI-CA modules.

As for PSM-FM, please, comprehend and explain to your client two important points:

a) You won't be able to budget a vendor separately, but only, and still hypothetically, through reconciliation account, which makes the whole thing meaningless, as there will be no control on specific vendor

b) You won't stop payment, from business perspective, to a vendor on duly registered invoice just because 'the budget was exceeded'

If your client is interested to follow the payments, he can 'budget' bank accounts. Again, this does not make any sense (at least, a blocking budgeting), because the control is already applied through treasury components and bank account balance itself. Still, technically, it could be done.

Regards,

Eli

[former_member220526]

thank you so much for your valuable input. it really cleared my confusions.

Regards,