Project WBS element budget exceeded - Message no. BP603

[VTC]

Hi SAP Project System Experts,

I am reaching out to request your help and support in our SAP PS AVAC analysis.

We're encountering challenges in PS budget. Where, system is throwing budget exceeded error for many WBS elements, despite the budget not actually being exceeded. In some cases MRP and project execution have begun before budget release(CJ32). And CJ32 is now preventing us from releasing the WBS due to a budget exceedance error, despite the budget not actually being exceeded.

We are having BOM structure as follows. And here I have taken an example for Semi finished product BOM.

We are posting consumption through production orders for this W-Code BOM. After this consumption, once the W-code stock is available, we will proceed to post the outbound delivery.

Please find detailed steps below for Material consumptions and Sales outbound delivery:

• We procure B-Code materials and formulated a W-Code BOM to utilize them effectively.
• Upon confirming the production order for W-Code, the system proceeded to consume the B-Code materials and manufacture the W-Code product. During this stage, cost element 401009 was debited and cost element 401002 was credited, both associated with their respective WBS elements, resulting in a net zero balance in “cji3”.
• Following material consumption, we initiated outbound delivery, where the system debited cost element 401003 against the relevant WBS element.

I have attached screenshots of the AVAC and accounting entries for your review. These images clearly show two debit postings of cost elements with associated WBS allocations, as well as one credit posting of a cost element also tied to a specific WBS.

Budget AVAC for reference WBS VT/ESP/300.01.03.03

Accounting entries for Production order confirmation.

Accounting entries for Outbound delivery

As checked in SAP report “S_ALR_87013558” & “CJI3”, the cost of WBS VT/ESP/300.01.03.03 is below the budget of INR 30,000.

Report: S_ALR_87013558

CJI3

Could you please assist us in reviewing the situation where we are unable to activate AVAC due to exceeding our budget?

We are encountering a similar challenge in our multi-level BOM, where the system accumulates costs across each BOM level without accounting for credits to AVAC, resulting in budget exceeded errors.

As shown in below example, the total cost of the finished product is INR 1000. However, when consuming the first SFG, AVAC calculates the cost as INR 700 & 300, and when consuming the FG, the system calculates an additional INR 1000, resulting in a budget exceeded error.

I've already escalated this to SAP, and they advised implementing the specified S_Notes. Subsequently, we executed CJBW, CJBN, and CJEN as instructed by SAP. However, the issue persists despite these actions.

S_Notes:
1594484
1038917
3028730
2795283

We kindly request your guidance to ensure if we are correctly following the procedures for the PS module and not missing any activity here?

Thank you,
Yash (FI)

[MarcioBlos]

Well, in the scenarios I have implemented, if there is project stock (special stock Q), then the project stock G/L is a statistical cost element (cost element category 90). The entry made against the project is a real statistical entry (value category 11).

Maybe this can help you.

Regards
Marcio Blos

[MarcioBlos]

I noticed that accounts 207001 and 207006 do not have a cost element. Even if you make postings to these accounts against a WBS element, they will be ignored by availability control and PS reports.

Should these accounts have a cost element?

Should these accounts be posted against the WBS elements?

Regards
Marcio Blos

[VTC]

Hi Marcio,

207001 and 207006 are stock(asset) GL accounts, Hence cost elements and WBS element is not required for this.

Regards, Yash

[MarcioBlos]

Is the material produced in special stock Q, linked to the PEP element?

If the order is delivering the material to the plant's stock, and the issue is consuming from the plant's stock, it will duplicate on WBS Element.

The best procedure would be for the order to deliver to the WBS Element stock, and for the issue to consume from the WBS Element stock.

[VTC]

Hi Marcio,
We have used only Special Stock "Q" for both procurement and consumption, and we are processing outbound deliveries from this same special stock "Q" which is linked to the project. However, the issue still persist.