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Former Member

Can budget flow from higher level to its sub level wbs.

Dear All,

Can budget flow from higher level to its sub level wbs.

I mean to say, if a sub-level wbs has budget of Rs. 10 and its higher level WBS has a budget of Rs. 100, then if the budget of this sub level wbs gets exhausted , then does the system allows cost booking on this sub-level WBS.

Does in any case this sub-level wbs can utilize this Rs. 90 left at its higher level wbs.(without doing any budget transfer)

Regards,

Vishal

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8 Answers

  • Best Answer
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    Former Member
    Jan 21, 2009 at 08:59 AM

    No.... It will not. you have to distribute the budget from Top level WBS.

    Regards

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    Former Member
    Jan 21, 2009 at 09:26 AM

    hi,

    maybe there is a setting for this..i didnt try to check yet..

    because in my observation, as long as there is distributable budget in higher level, it is allowed to have costs at lower levels..

    notice that if you maintain budget at highest level, the column "distributable" also has values and it decreases when you maintain budget at the lower level). this amount under the distributable column is the amount that you can still use up /still unallocated for lower level elements..based on my experience any lower level WBS can use this distributable budget without having to manually distribute it..

    regards..

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    Former Member
    Jan 21, 2009 at 09:35 AM

    Hello,

    If there is bugdet available on higher level of WBS element then you may transfer the money from higher level to lower level. Movements of budget are done by the following transactions:

    • Supplement CJ36, CJ37

    • Return CJ35, CJ38

    • Transfer CJ34

    You may read about the functionality of budget updates under

    http://help.sap.com/saphelp_erp60_sp/helpdata/en/86/98853478616434e10000009b38f83b/frameset.htm

    There is one more possibility - if the higher level WBS element has got budget available and is an account assignment WBS element, the costs can be posted to the higher WBS. I don't think there is a possibility of automatic budget updates from high level to lower...

    Kind regards,

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    Former Member
    Jan 21, 2009 at 10:34 AM

    No, it is not possible. once availability control is activated you cannot exceed budget allocated to WBSE as per torlerance limit setup.

    Regards,

    Sudhir

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    Former Member
    Jan 21, 2009 at 06:02 PM

    If the higher level WBS is account assigned and also the lower level WBS then only the budget can be utilised from the higher level other wise this is possible only after redistribution of the budgets

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    Former Member
    Jan 21, 2009 at 09:57 PM

    Hi,

    Only if you have Availability Control activated and is configured to give a Hard Error message in case you overrun the tolerance limits, will you be prevented from posting additional costs greater than the budget distributed.

    Otherwise, there is nothing that ties Budget to the Actual Cost posted, unless the Controller hauls up the Project Manager for overrunning the budget.

    However, irrespective of whether Availability Control is active or not, all budget value changes should be through Budget Supplement (CJ37 / CJ36), Return (CJ35/ CJ38) and Transfer (CJ34) functions.

    Let me know if this helped.

    jibat

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    Former Member
    Jan 22, 2009 at 06:08 AM

    Hi Vishal,

    Budget "availibility control" is the prime attribute which you should be taking a closer look at.

    Availability control checks the current distributable budget (or release) against the assigned value.

    An Assigned value of a project is calculated based on a host of other factors of a project.

    Out of which, the factor which you stated in your post is one.

    Actual costs of subordinate WBS elements if these do not carry budget.

    Correct me if I am wrong.

    100$ was budgeted at the top level.

    You have manually distributed budget of 10$ to one of the subordinates.

    If you take a look at the Budget profile (OPS9), in the Avl.Ctrl. area, you should have

    1. Activation Type : 0, IF it is already 0, then should not be a problem

    2. Usage : Does not matter (for this query)

    2. Overall : Active

    3. Obj Curr : Does not matter (for this query)

    4. Releases : Inactive

    With this you will be able to utilise rest of distributable budget of 90$.

    Only thing to note here is

    • Actual costs booked against this (subordinate WBSE) will be shown in reports as Commitments.

    • You will be able to book actual costs which exceed the original budget of the superordinate WBSE.

    I hope this explanation should answer your query.

    Regards,

    Pradyumna

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    • Former Member

      Dear All,

      Thanks for your suggestions .

      From your points i concluded that budget can not flow from higher to lower level WBS , if there is strict budget check in the system.

      Now, to my obsrvation i found that , even in case of strick budget check,there are particular cases where this budget flow from higher level wbs to lower level wbs takes place.

      These are the cases where you are doing cost booking on WBS where no budget has been alloted , but the parent WBS of this concrned wbs has budget.

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    Former Member
    Feb 06, 2009 at 10:57 AM

    Thanks All.

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