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cost center budget

Former Member
0 Kudos

Hi Experts

What is the difference between cost center budget and cost element planning

my client is asking me both , so how i want to give the explanation

As per my understanding point of view either cost center budget and cost element

planning anyone is enough for the business

Is it right ? if i wrong please correct me

Thanks & Regards

Sri

help.sap.com

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Answers (1)

Answers (1)

ajaycwa1981
Active Contributor
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Hi

Budget @ Cost ctr / cost element is available only if you activate Funds Mngt... Budget stops the booking of expenses if exceeded

Where as Planning (KP06) does not have that feature... you can book expenses even if Plan amount is exceeded

br, Ajay M

Former Member
0 Kudos

Hi,

As Ajay correctly pointed out budgetory controls cannot be put at cost center level with out using fund management module to restrict the postings in a cost center above limit. But we are using the following work around:

If u want to budget for cost center 1

Create an internal order and budget it.

Use a substitution rule to trigger the internal order when the posting happens to cost center 1.

Postings to cc will be restricted once the budget is exceeded.

Cost center plan only allows you to make a plan for a cost center, where you can have a plan/actual report at any point of time.

Hope this helps

Best Regards

Vimal