Budgetable components in FI

[atif_farooq]

Hi:

     I have created an account grouping for one of my test company code as under

Share capital

Reserves

Unappropriated profit

Surplus on fixed asset revaltn

Long term finance

Long term deposits

Deferred liabilities

Trade payable

Other Payable

Lease Rental Payable

Short term financing

Interest accrued on loans

Current portion long term loan

Income tax payable

Non current assets

Accumulated depreciation

Long term investments

Stores, spares & loose tools

Stock in trade

Trade debts

Advances

Trade deposits & prepayments

Balances with statutory auth.

Short term investment

Cash & bank balances

Revenues

Variable manufacturing cost

Fixed manufacturing cost

Lease Rental

Admin expenses

Selling & distribution expense

Financial charges

Other expenses

Other incomes

Taxation

I have opened GLs for each of them,if we see from budgeting perspective i perceive that Variable &fixed manuf cost, Adm expenses, Selling & dis expenses , financial charges,taxation and other expenses are budget-able items. I have created commitment items for each of these account groups but i am confused about others account groups, should i also create commitment items for them, if yes what will be the utility of doing so e.g if i create a commitment items for GLs belonging to account group Stock in trade(this is a balance sheet item), my own logic says that for all GL account in  Profit & Loss we should create Commitment items (with exception of revenue) and for balance sheet items like assets and liabilities i am confused. Should we also create commitment items for them. My belief gets more firm when i look at sap.help.com for Commitment items which says its a functional grouping of Expenditures & Revenues for FM area. Please guide me.

Best Regards

[iklovski · Accepted solution]

Hi,

Commitment item should be created(derived) for every G/L account. But the nature for commitment items should be different. You have to distinguish between the lines you want to maintain the budget and those, which are still necessary, but won't be valid budgetary-wise. Please, read note

1466979 for more info.

It's not that definitely for balance sheet accounts, you don't have to define budgetary commitment items. It's really dependent on your business requirements. Imagine, that you want to control budget for stock, assets, etc.

Regards,

Eli

[atif_farooq]

Hi:

        Thanks for your valuable inputs, two clients are there ,one is manufacturing and other is an educational institute.They are currently running legacy systems & soon SAP implementation will be started. Both of them wants budgeting features.Manufacturing one will obviously want to budget its stock, assets and every thing.

What i perceived from your reply that i can create commitment items for every GL (we want 1:1 relationship) there is no harm in doing so?

I am working in FI-AA integration with FM by following  http://help.sap.com/saphelp_470/helpdata/en/f0/ca3fab260211d28a430000e829fbbd/content.htm

..I have activated additional account assignment fund center & fund  FI-AA customizing. I have some issues in it. In customizing i am unable to find a path as provided in above link

Funds Management Government IMG and choose Actual and Commitment Update/Integration ® Asset Accounting Integration ® Flag Transaction Types as Relevant to Budget.

How will budgeting work for assets, i have created commitment items for asset recon accounts with finan trans 90 and commitment item category 1 (is it correct ? ). Suppose i have created fund with certain expiry date which has been provided for acqusition of asset , i have created fund centers, set a derivation strategy form them. In FMBB i can not post against commitment item for asset recon account with its corresponding fund center, Right ? I have created an asset with fund and fund center in it .. How will i budget it.. Please guide

Regards

[iklovski]

Hi,

There is no harm in 1:1 relationship, though in certain cases it does not make sense. For example, for AR/AP reconciliation accounts, bank accounts and other purely financial accounts. When you create commitment item you have to make sure that the nature corresponds to your needs (following the note I gave). Just if you want to manage the budget, the transaction should be 30; otherwise, no budget control will be executed. So, if you want to manage budget for assets acquistion, then commitment item of 90/1 is not good.

Regards,

Eli

[atif_farooq]

Hi:

       Thanks ,so for all items whether balance sheet or profit & loss for whom i want budget check, they must have financial transaction 30. This is what i got from your post ..

I have deleted commitment item for Asset acquisition and assigned in 30 & 2. AVC triggered but its behavior is wrong..I have posted a budget of 100000 $ for fund center but when i post acquisition of amount 105,000 $ to asset in F-90 it displays Annual budget exceeded by 105,000.00. Same message appears if i try to post 95000 $ acquisition ,system should have allowed it.

Thanks for your valuable inputs.

Regards

[iklovski]

Hi,

30/3 would be more relevant... Anyway, according to your message the AVC is not checking your budget at all; otherwise, an amount of 5,000 would appear in the message. Please, initialize your AVC ledger via FMAVCREINIT transaction. If this does not help, make sure that the AVC controlling objects are corectly derived when you do your posting. You can check it by activating a trace. Also, you can check if FM assignment is correctly derived by activating a trace in FMDERIVE.

Regards,

Eli

[atif_farooq]

Hi:

      Issue was resolved, there was no issue with AVC settings. In fact i had assigned fund & fund center in asset master data but only posted budget in FMBB for fund center & commitment items. I changed the budget workbench layout and re posted with full FM assignment Funds, Fund center & commitment item. Now AVC triggered . Now i want that if budget officer consumes more than 80 percent of available budget an email should be generated to the responsible person for that fund center whose funds are being consumed , i read somewhere that it is possible in FM ,will i have to make use of workflow or something else. Please guide me.

Regards

[Former Member]

Hi Eli,

Thanks for this update. I read the note and to a great extent it has given me some clarity.

Still I have a doubt in my head. Suppose I have a GL (Expense/inventory/asset/tax) for which I dont want any budget to be maintained. So is it Ok if I assign this GL with a commitment item of nature 90/1?

Regards,

Dhruv

[iklovski]

Yes, it's possible via AVC tolerance profiles. There, you have a setting for email to be sent.

[iklovski]

50 would be more proper.

[Former Member]

Thanks Eli...................50 with Item category 2/3 is what I will go ahead with for this implementation.

Rest lets see what surprises await 😉

Dhruv

[atif_farooq]

Hi:

        I have already done settings there but where to specify the email address of fund center controller? In Fund center master data i do not find any field for email id..

Regards

[iklovski]

Hi,

It will be posted in the inbox of the responsible user in the fund centre master data. If you want that also an email is sent, your Inbox should be configured in this way (SO36, if I remember correctly). Please, also check BADI FMAVC_EVENT which will allow to 'play' with the recipients. Search SDN, there is info on this functionality.

Regards,

Eli

P.S. ...and again, let's not mix the issues

[atif_farooq]

Hi:

       Thanks so i will be requiring basis guy help for that...Eli i am not mixing issue , you can see i am posting threads separately for varying kind of issues i am coming across.

Regards

[iklovski]

Stiil, let's keep the headers coherent with the content

[atif_farooq]

Hi Eli:

It is with reference to the above post, can you please confirm me that if i specify user login BOSSID, for an email to be generated (for even of budget consumption reaching a certain level) for this user login what are settings required , will BASIS guy do the job or ABAPER. In FM-BCS i do not see any configuration for the same and as i mentioned by you SO36 is for generating email id to the email address.

Regards

[iklovski]

It's for BASIS.