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Budgetable components in FI

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

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  • Best Answer
    Posted on May 29, 2012 at 10:20 AM

    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

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