Cost Center Budgets

[Former Member]

Hello Experts,

We are trying to activate cost center budgets and here are the two concerns that I have:

1. Like Internal Order/Projects, does budgeting on Cost Center do Availability check and give a hard stop on any transactions hitting that Cost Center if there is no budget left? We want to be able to hard stop on any transactions that could go overbudget.

2. If so, there are few Cost Elements that we want to hit the cost center even if there is no budget left. Somethings like T&E which has already occured and is entered in SAP via interfaces, since we want to avoid the complication of these transactions hitting suspense accounts. Is this possible?

Thanks in Advance!

N.

PS: All answers will be duly rewarded.

[iklovski · Accepted solution]

Hi,

No, the budget for cost centres does not operate availability check (AVC). It's used for reporting purposes only. However, if you want to imply budget control on cost centres it could be done in the following manner:

a) define statistical internal order with a straight link to the cost centre in question

b) set the budget for internal order

c) create a validation which will not allow posting on the cost centre in question without the relevant internal order

In this manner, you will achieve the situation where the postings to the cost centre will be done only with the statistical posting on internal order where AVC will be activated.

Regards,

Eli

[Former Member]

Hi,

When u'll activate budgeting for const center, ineffect, u r activating Funds Management. Answers to ur questions:

1. Yes, you can have the same functionalities of budget at Internal Order and Projects, of having availability check & hard stopping a transaction exceeding budget.

2. there are 2 options:

a) You modify the budget for the cost element for which budget is used and let the entry pass in that specific cost element

b) Modify the hard stop functionality for that COST CENTER and post the transaction.

Be careful while going for option b) as this will make it very easy for the users to surpass budget-availability control for other Cost elements.

I hope ur query is answered.

Regards,

Amish.