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Funds Management-BCS

I have a scenario where some help is required. We are going to implement my SAP ERP 6.00 Public Sector Management u2013 BCS. We are into realization phase of Budgetary Control System implementation.

Suppose we have a budget of 90000 INR uploaded in FY 2011 for particular expenditures to be continued to subsequent FY. Now this budget is planned to put into use as per below schedule:

We will be making purchases from allocated budget of INR 90000 as per below schedule,

In FY 2011 -


INR 30000

In FY 2012 -


INR 30000

In FY 2012 -


INR 30000

But the entire purchasing schedule (even for subsequent FY 2012, 2013) will be made in FY 2011 in the form of Purchase requisition. So we create PR with 1st item delivery date in FY 2011, with 2nd item delivery date in FY 2012 & 3rd item with delivery date in FY 2013. Now this PR will be converted into Purchase order as required in the subsequent FY.

Now as per the above, budget of INR 90000 gets committed in FY 2011 itself and it gets blocked for further usage. Also if we see, committed budget of INR 60000 (90000-30000) meant for FY 2012 and FY 2013 also get blocked for next 2 years and if this has not happened it could have been used for some other purposes during emergencies. So just want to confirm is there any way to get the budget committed at the delivery date level and if this happens the above issue gets solved.

If the budget is committed based on the delivery date of the PR items, then the above issue will be solved. Just want to know if there is any solution to this

With Regards

Sandeep

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  • Posted on Nov 17, 2011 at 01:00 PM

    Hi,

    Here is some info to make it more clear to you. You can either manage your budget annualy and in this case you will enter 3000 in each of 2011, 2012 and 2013 years. The budget will be committed also on annual basis, and it's possible to make it by the delivery date (see update profile info). Alternatively, you could manage your bdget on multi-year basis; in this case, you can enter your budget in 2011 and consume (commit) it in 2011, 2012 and 2013 accordingly. You have to notice, though, that the control will be done in spite of the year of consumption, e.g. you could consume all 9000 already in 2011.

    Normally, these two conscepts meet most of business requirements. However, for more sophisticated scenarios, you could use multilevel budget control by defining different AVC ledgers while using specific budget objects, e.g. 'budget period'.

    Regards,

    Eli

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    • Hi Eli,

      Thanks a lot for your answer. I have understood the solution. I just need your view that should I use multi level budget method or should handle the through Update profile.

      Please give me little more idea so that I can proceed for system changes.\

      With Lots of regards

      Sandeep

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