Procurement and Consumption budget

[Former Member]

Dear Experts,

Please clarify for the difference between Procurement and Consumption budget process control

Our Client at present in their legacy have only consumption budget

In SAP client expects budget control with the same combination of Fund/FC/CI at the time of Procurement of Material and Consumption of Material..since in both cases they will use same combination of (Fund/FC/CI ), but they have only consumption budget value

How to restrict budget availability check at both levels (Procurement = PR/PO) (Consumption = 261 )

As per my understanding it only possible until unless they divide budget separately for Procurement and consumption

Regards,

Upendar Singh

[iklovski · Accepted solution]

Hi,

In SAP terms it does not exist: there are only commitment and payment budgets. However, it's up to you to build an FM combination, which would allow you to distinguish between different processes. By the way, PR/PO is a commitment, while 261 (goods issue) is an actual; so ,here, you can clearly wotk with payment and commitment ledgers.

Regards,

Eli

[Former Member]

Dear Eli,

Thanks for your reply

Here payment budget and actual budget is same right?

Just one clarification: Ex- we have one Commitment item with a yearly budget value of $1000, now I have raised a PR/PO for $1000 so my budget is completed

Now issuing material from Stores to Consumption (261 movement).. again it will ask commitment.. at this time I have to mention a separate Commitment for actuals

Kindly confirm is my understanding is correct?

Regards,

Upendar Singh

[Former Member]

Hi,

Commitment item create in PR/PO level and same is reduce in consumption level. commitment item is same to knock-up.

Regards,

[sjajodia]

Upendar,

Procurement budget is used when management does not want the Inventory Managing organization to purchase too much inventory and stay within the budget. To set this up the Inventory Commitment Item (linked to the Material GL) should be type 30 and real. The Warehouse fund center should be defaulted for all Material GLs allow ing budget to be checked in this fund center for PR/PO.

Consumption is usually charged to the consuming department's budget.  For this the consumption GL should be linked to the consumption commitment item and will have the consuming department's fund center.

Please see http://help.sap.com/saphelp_erp60_sp/helpdata/en/f0/ca3f50260211d28a430000e829fbbd/content.htm

Thanks

Shyam

[Former Member]

Dear Shyam,

Many thanks for your reply

Client has only one budget i.e. consumption... but they want budget control with the same FUND/FC/CI combination for procurement of material and consumption of the material

Regards,

Upendar Singh

[sjajodia]

Upendar,

The you can link the warehouse fund center and the consumption fund centers to a single fund center in AVC.

Thanks

Shyam

[Former Member]

Dear Shyam,

Can you please clarify what will be the budget consumption in this case...if both FC are assigned to a single fund center in AVC (for the both transaction i.e. procurement and consumption )

Please let me know how to assign link the warehouse fund center and the consumption fund centers to a single fund center in AVC

Regards,

Upendar Singh

[sjajodia]

Upendar,

Budget consumption will be in the single fund center. You can derive the AVC fund center by using the Derivation Strategy for derivation of Control Objects. Please see:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/72/1bf53bd0145048e10000000a11402f/content.htm

Thanks

Shyam

[Former Member]

Dear Shyam,

Sorry for late reply

Many thanks for reply.

Regards,

Upendar  Singh