POs value exceeding overall budget in WBS

[Former Member]

Hello

I'm an auditor in a multinational company that uses SAP. I have came upon a case in which the overal budget for a WBS is 100,000 and the total value of the POs opened against this WBS is around 140,000. Invoices recorded against these POs are less than 100,000. I have checked in the WBS and saw that the budget control for it is activated.

I'm trying to understand what happened but I can't as of now.

Can someone help me?

Thanks a lot in advance

[Former Member · Accepted solution]

It could be a situation where the AVAC tolerance limits are set more than 100% which is accommodating commitments more than allocated budget. As for invoices, please check in purchase order history what are the quantities ordered/delivered and rem. order value to check the invoice values in the pipeline..

Hope this helps..

Cheers!

[Former Member · Accepted solution]

Goodmorning

can you please tell me how to see the tolerance levels set in AVAC?

As far as invoices and deliveries is concenrned I have checked and I have seen that they have only received and been invoiced with part of the quantitied order and not for everything. More specifically the overall budget of the WBS is 100,000 and they have raised 4 POs against this WBS with total value of 151,0000. They have only received u20AC 74,000 and for the rest I have seen that they haven't received anything.

The overdelivery tolerance set at the PO level is 5%.

Thanks a lot in advance

[Former Member · Accepted solution]

You will find tolerance limits at IMG>PS>Costs>Budget> right under the budget profile. It also could be a case where AVAC is not activated, pls check the same in the budget profile. If it's not activated then the tolerance limits have no bearing on the costs.. in case the AVAC is switched on/off during the execution and if the commitments were raised during this phase, then the system would block during the actuals (GR/IR), if AVAC is currently active..