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Budget Control System

Hi all,

I m new to SAP- FICO. Can anyone plz help me in understanding the difference between BCS in public sector management and use of internal order for budgeting. Which one is effective?

Thanks n Advance,

Rozario.

Edited by: Rozario Anand Sebastian on May 24, 2008 2:59 PM

Edited by: Rozario Anand Sebastian on May 24, 2008 3:00 PM

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    author's profile photo Former Member
    Former Member
    Posted on Jul 01, 2008 at 10:42 AM

    Hello Rozario,

    BCS stands for Budget Control system.

    The functions in this component support budget planning, budget execution and allow you to monitor the availability of funds.

    The budget control system (BCS) in Funds Management is an alternative to former budgeting. BCS is designed to allow flexible customer-specific adjustments to all important functions. BCS is SAPu2019s strategic budgeting tool.

    Implementation Considerations: If you use the Grants Management component integrated with Funds Management, only BCS fulfills the prerequisites necessary for this. This also applies if you want to work with funded programs for the account assignment. The required FM account assignment elements Grant and Funded Program are only supported in BCS.

    SAP does not intend BCS and Former Budgeting to be used at the same time. Therefore, menu transactions, functions and the necessary Customizing are separate.

    If you want to use the budget control system as an operative budgeting tool in Funds Management, you must activate this in the Customizing of Funds Management, under Basic Settings ->Activate Global Functions for Budget Control System ( BCS).

    Integration: All other FM master data is also supported in BCS, as well grant and funded program master data.

    BCS includes an integrated planning tool with basis functions for budget planning. If you want to use comprehensive budget planning, you can exchange data with SAPu2019s Strategic Enterprise Management.

    You can use BCS together with Position Budgeting and Control (PA-PM-PB).

    The Business Information Warehouse System (BW) is intended as a comprehensive reporting tool for the budget control system, starting from Release 3.0B. You can upload your BCS planning data from BW.

    BCS only works with Funds Management and Grants Management, not with other components that can also budget.

    Features: · You can select the relevant FM account assignments as budget addresses and posting addresses from the entirety of the master data combinations, by using the functions of the Budget Structure.

    · Budget distribution and the assignment of posting addresses, budget addresses and availability control objects in BCS depends on the master data hierarchy, which you can define as you wish by using derivation strategies defined in Customizing.

    · Customer-definable budget types, entry document types and consistency checks in BCS Budgeting allow you to map the requests of your organization in the system.

    · Budget entry and budget update activities are based on documents and are logged in budget entry documents. You display and maintain these in the Budgeting Workbench.

    · Status Management allows you to subdivide the budget execution process in individual budgeting phases and define specific user roles through different authorization assignments.

    · The BCS Availability Control is a flexible tool that you can customize to monitor and compare budget values and commitment/actual values. This control allows you to use independent availability control checks simultaneously.

    Restrictions: The budget control system delivered with the Enterprise-Release (EA-PS 1.10) is new and will be enhanced with additional functions in following releases.

    Functions such as revenues increasing the budget and releases are supported with release EA-PS 2.00. SAP also provides support for migration from Former Budgeting to BCS.

    Note that BCS reporting functions are not designed for comprehensive management reporting. You must use the Business Information Warehouse system as of Release 3.0B.

    BCS is not intended for use by German Government customers.

    Because of the reasons given above, SAP recommends that you analyze your organizationu2019s existing functions and requirements.

    =============================================

    Internal order Budgeting:

    Use: The budget is the approved cost structure for an internal order or an order group.In contrast to planning, budget management is binding. In the planning phase you need to estimate costs, whereas during the approval phase, funds are prescribed by the budget.

    Features: The following different budget types exist:

    Original Budget: This is the budget originally assigned, before any updates were made.

    Budget Updates: Unforeseen events, additional requirements, for example, price rises for external activities, and so on. This may mean you need to update the original budget, in the form of:

    Supplements

    Returns

    Current Budget: This is derived from the budget types already mentioned:

    Original budget+ Supplements- Returns= Current budget

    The method for assigning and updating budget, and for configuring availability control for internal orders or order groups is similar to that for projects, except that projects are organized in a hierarchy.

    Hope this helps. Please assign points and let me know if you need anything specific.

    Rgds

    Manish

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 04, 2008 at 06:33 AM

    Hi,

    Budget Control System (BCS)

    The Budget Control System (BCS) in Funds Management is an alternative to former budgeting. BCS is designed to allow flexible customer-specific adjustments to all important functions. The functions in this Funds Management component support budget planning, budget execution and allow you to monitor the availability of funds.

    Implementation Considerations:

    If you use the Grants Management component integrated with Funds Management, only BCS fulfills the prerequisites necessary for this. This also applies if you want to work with funded programs for the account assignment. The required FM account assignment elements Grant and Funded Program are only supported in BCS.

    SAP does not intend BCS and Former Budgeting to be used at the same time. Therefore, menu transactions, functions and the necessary Customizing are separate. The necessary migration tools are available if you are using Former Budgeting, but want to migrate to BCS.

    If you want to use the Budget Control System as your operative budgeting tool in Funds Management, you must activate this in the Customizing of Funds Management, under Basic Settings -> Activate Global Functions for Budget Control System (BCS).

    Integration:

    All Funds Management master data is supported in BCS, as well grant and funded program master data.

    BCS includes an integrated planning tool with basic functions for budget planning. If you want to use comprehensive budget planning, you can exchange data with SAPu2019s Strategic Enterprise Management. You can use BCS together with Position Budgeting and Control (PA-PM-PB).

    The Business Information Warehouse System (BW) is available as a comprehensive reporting tool for the Budget Control System. BCS only works with Funds Management and Grants Management, not with other components that can also budget, such as SAP Controlling.

    Budgets for Internal Orders

    Internal orders are normally used to plan, collect, and settle the costs of internal jobs and tasks. The SAP system enables you to monitor your internal orders throughout their entire life-cycle; from initial creation, through the planning and posting of all the actual costs, to the final settlement and archiving.

    Implementation Considerations:

    Order management within a company usually differentiates between sales-oriented orders, and internal orders. Sales-oriented orders (production or sales orders) are intended mainly for the logistical control of input factors and sales activities. Internal orders are categorized as either:

    Orders used only for monitoring objects in Cost Accounting (such as, advertising or trade fair orders)

    Productive orders that are value-added, that is, orders that can be capitalized (such as in-house construction of an assembly line).

    Internal order budgets: The functions for budgeting internal orders are summarized in this role.

    The role consists of processing and displaying the following:

    - Original budget

    - Supplements

    - Returns

    - Documents

    - Availability control

    Activities:

    To plan or budget orders, choose Internal orders -> Planning -> Overall values -> Change or Budget -> Original budget -> Change.

    To plan or budget WBS elements, choose Investment projects -> Planning -> Total costs -> Change or Budgeting -> Original budget -> Change.

    I hope it will help.

    If helpful, please assign points.

    Regards,

    Manju

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