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Former Member

Budgeting

Can we do budgeting for cost centers ?

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    author's profile photo Former Member
    Former Member
    Posted on Sep 28, 2007 at 07:12 AM

    Hi Dinessh,

    What do you exactly mean by Cost Center in your context?

    Suda

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    • Former Member

      Hi Suda,

      Now i am having an account called Travelling expenses. I am having Cost Centers as Bangalore and Chennai.

      When i am posting entries i am able to have a single account for both cost centers since i going to select the relevant cost center.

      But, when i am going to budgeting, system allows me to do budgeting by G/L accounts only. But my client wants to set budgets even by cost centers also. i.e., Travelling expenses for Bangalore separately and Chennai separately

  • author's profile photo Former Member
    Former Member
    Posted on Sep 28, 2007 at 04:53 PM

    The suggession Jimmy has is the only option you have since the budgets in SAP are set at the G/L Account level.

    I am not sure how deep you are in your implementation cycle or if the Client is Live. But this is your only choice.

    Sud

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    • Former Member

      Suda and Jimmy are correct. A segmented chart of account is the best approach to a cost centres and profit centres structure.

      Usually, when I implement a site, I always try to have the following structure for my chart of accounts:

      - G/L account - Profit centre - Coster centre.

      When you post a revenue, you can easily select the profit centre (based on the warehouse for example). It is the same concept for expenses where you can create a service item with a G/L account determination at the item level. I suppose your PC 1 will be represented by a warehouse and PC 2 by another meaning that the system can change the expense account automatically based on the warehouse of your purchase order.

      This system will also allow you to bugget by profit centres and cost centres.

      Regards,

  • Posted on Sep 28, 2007 at 06:57 AM

    Hello,

    In SBO, budget is actually used in G/L account. If you look at the COA --> account detail, you will see the tick box relevant to budget. In Financial --> budget setup --> budget, you could see the budget scenario definition for GL account.

    Rgds,

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    • Hello Dinesh,

      I am sure it is really required. The way out is to make segmented COA, where each segment code reflects the cost center. E.g. 12000/HRD or 12000-HRD. So, cost center is HRD. Another way out is creating addon DI.

      Rgds,