Budget and Settlement of Project

[Former Member]

Hi There,

I have a project, assigned a budget to it and released the budget including the project. For example:

Level____WBS Element____Budget_______Distributable____Assigned_____Total

1 _______Level 1 _________50.000 ____________0,00 _________ 0,00 ____50.000,00

2 _______Level 2a ________25.000 _______25.000,00 _____25.000,00 ____25.000,00

2 _______Level 2b ________25.000 _______25.000,00 _____25.000,00 ____25.000,00

Settlement rule is that a network activity settles to WBS and that level 2 WBS settles to a higher level WBS and that WBS level1 settles to a profitability segment.

To the Network activity from WBS "Level 2a" I assign costs e.g. 2.500

When I settle I am able to settle the network costs to the WBS "level 2a". But I am not able to settle the costs from WBS "Level2a" to the Billable WBS "Level 1". The system then outlines that there is a deficit of 2,500 (availability control is active and is set to 100% with error message)

If I raise the budget for WBS "Level 1" from 50.000 to 52.500 only then I can settle the complete costs to all WBS elements and to the profitability segment.

Has anyone an idea why this is happening because currently budgeting in combination of settlement is not working accurately.

We use: SAP ERP system 4.6C

Thanks, Bastiaan

[Former Member · Accepted solution]

Hi,

The assigned value at level 1 is 0. This should be causing the issue. Please check.

[Former Member · Accepted solution]

That is correct, the assigned value is 0.

But how can I assign a value to the highest level? I have a budget of 50.000, I distribute this evenly to two subordinate levels.

When settling the network activity settles to level 2 WBS which has enough budget. The level 2 WBS settles to the level 1 WBS which will settle to the profitability segment. So level 1 collects all costs from subordinate levels but with budgeting this is not possible. I have tried this also on IDES system, same issue.

If I raise the budget for level 1 to 75.000Column assigned value still remains zero. If I then try to settle the costs, it works????

[former_member203108 · Accepted solution]

Dear, Budget check will happen when you do settlement within project(ie., settlement of cost from lower WBSE to Higher WBSE). You have two options:

1. If you are using settlement by settlement cost element, then exempt that settlement cost element in Budget config.

2. If you are not using settlement cost element i.e., settlement by cost element, then you can deactivate the availability control manually by CJBW, do settlement, then activate the availability control by CJBV.

[virendra_pal · Accepted solution]

have you read OSS note 159850??

[Former Member · Accepted solution]

Ahmed, You are correct.

We added in transaction OPTK Excempt cost elements, the costs elements that will be excempted. Settlement then works.

Thanks

[virendra_pal]

if you are settling to PSG then why roll up all the settlement from lower to higher elements

Just settle the billing element - it should take up the costs of all networks and WBS below it

for all other elements set the settlement profile as non mandatory

[Former Member]

Hello Virendra,

Thank you for your answer.

I have tried this as you mentioned. I deleted the settlement rule of the lower WBS elements and from the network activity.

When I try to settle, SAP outlines that I should maintain the settlement rule for the network activity where I booked the actual costs on.

So it did not take up the costs of all lower level WBS and network activities automatically. This is the reason that we defined settlement rules to settle to a higer level WBS.

Or is there a customizing setting where one can assign that all costs should be taken from lower levels? without having to set up settlement rules for lower levels?

Best regards, Bastiaan