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actual cost exceeding approved budget

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Dear Experts,

I have multiple WBS have issues of actual exceeding budget. I analyse exempt cost elements have postings in the actual postings. Does that is the reason actual exceeded and not throwing budget exceeded message?

As Assigned value also exceeded because Assigned= Actuals + committments.

I understand that system based control is in place to restrict actual cost exceeding approved budget, but I would like to know the reason behind this.

Regards,

Accepted Solutions (1)

Accepted Solutions (1)

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You can exempt some cost elements in the config, so that you can post to that cost elements even when the budget is exceeded. This logically makes sense. A simple example: rent paid, wages paid - these cannot be controlled. Even if you are exceeding the budget, you must pay your rent and wages due. (As you have made these cost elements exempt, so the budget breach message does not show.) But travel expenses for an employee business tour or bonus can be controlled if our budget does not permit.

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Thanks a lot

Answers (2)

Answers (2)

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Does exempt cost elements posting have any impact on the actual/assigned?

kenmelching
Active Contributor
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There are other areas where actuals can exceed budget. For example once a PO is written and passed availability control the budget is not rechecked at GR. The GR could be higher than the PO amount. The same is true with a Service Entry Sheet.

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Thanks Ken