Multi-level budget structure - define (simple example)

[Former Member]

Can someone give me a quick, simple example to help me understand what exactly is a multi-level budget structure? If budgeting is done using Fund, Funds Center, Commitment Item, etc...is that multi-level? I am finding information on how to activate it but I need a basic understanding. Thanks!

[iklovski · Accepted solution]

Hi,

No; fund, fund centre, commitment item, etc. are FM objects and using them does not mean that you have multi-level budget structure. Multi-level structure activation allows to create hierarchy in the budget structure with further budget distribution functions. This functionality reminds a bit the one which was available in former budgeting. For more info you can consult business functions documentation on help.sap.com for ECC 6.05 release, e.g.

http://help.sap.com/erp2005_ehp_05/helpdata/EN/4f/fcd9542ca74395a38bd2abb77d4ece/frameset.htm

Regards,

Eli

[Former Member]

I think I have a basic understanding now...

The use of...

Fund, Fund Center, Commitment Item, Functional Area, & Funded Program...

is representative of a "flat" structure.

With a multi-level budget structure a hierarchy can be created using the Fund Center and/or Commitment Item...

Fund Center A

--- Fund Center A1

--- Fund Center A2

The multi-level budget structure supports top-down and bottom-up budget

distribution. For top-down budget distribution, the budget is distributed along the

hierarchy path from the upper account assignment to the lower account

assignments. For bottom-up budget distribution, the budget is entered on a lower

account assignment, and the system can automatically create the budget on

superior account assignments in the multi-level budget structure.

[iklovski]

Exactly. Though, you can build hierarchical budget structure without activation of multi-level budget structure as well. This could be done by defining budget address derivation strategy. However, multi-level budget structure gives more 'visual' comprehension of hierarchy in the FM objects and allows to use distribution top-down techniques.

Regards,

Eli