Rolling budget in FM

[atif_farooq]

Hi:

I am at client which is in retail industry . They want to make use of periodic budgeting and then they want that legt over budget should be carried forwad to the next month automatically. I presented idea of opening 12 funds w.r.t month and then post budget on that dimension for every month but client is not agreeing . Neither he is agreeing on posting budget for the whole year and then releasing it monthly. They are asking for budget period option and also the functionality to automatically carry forward residual budget to the next moth i-e rolling budget.  I have not worked on budget period function and i have some questions on it

Business function for Budget period is already active.

I read from SAP library that budget period needs to be assigned to Fund Master. At the moment we have only two funds OPEX & CAPEX. Now what is point in assigning Budget period master records to these fund master. Do i have to open 12 fund master ?

We have total 12 budget period in every fiscal year. Does that mean i need to open 12 budget master i-e one for every month... I am confused about its validity and expiration and reversal date concept . F1 help does not provide much help n these fields. Does validity FROM and TO for July of 2014 should 01.07.2013 to 31.07.2013 . Fiscal year is from July to June. Since this concept is new i would need forum help in this.

Regards

[iklovski]

Hi Atif,

You can indeed work with budget period, which was developed for monthly or other periodical budget management. However, even with this object, there is no functionality of automatic carry-over of the budget. Budget carry-over is relevant only for year dimension; all other operations would be handled via budget transfer. You can, though, develop a job, which would transfer residual budget from budget period X to X+1, and you can schedule this job in the end of each month.

Regards,

Eli

[atif_farooq]

Hi Eli/Shyam:

Thank you for the inputs. What i want to know is about nature of budget period master data.I have few questions about budget period,i hope they will not sound basic

1..If i my client's budget period is one month then i will be opening 12 budget period records  Fields like  its validity and expiration and reversal date concepts are confusing me. Just want to confirm if i open budget period for July with fiscal year V6 then should its validity be from 01.07.2013 to 31.07.2013. What is meant by expiration date and reversal date ?

2..Once i am done with budget period creation i need to assign all budget periods opened to my fund masters which are OPEX & CAPEX.?

Thank you for your time

Regards

[sjajodia]

Hi Atif,

Validity date is important as this determines which dates a period is valid for. Expiration and Reversal dates have specific meaning in US Federal budgetary accounting but do not activate any checks in the base system. So you can leave them blank. I am not sure there is a function to assign the budget period to a fund (I do not have the function active in my system. If it is possible, it seems to be a ggod idea in your case.

Thanks

Shyam

[atif_farooq]

Hi Eli:

Because of monthly carrying forward and other issues client has made up his mind to use Fund assignment to represent Monthly budget. For OPEX & CAPEX each ,12 fund master have been opened .with respect to the months in year. Now issue being faced is with derivation rules. I am designing templates for derivation rules. I have based my derivation rules as

Cost element+Cost center +Posting Date from +Posting date to=Fund+FC+CI

In posting date system specifies the year too. So it means for every new fiscal year maintenance of derivation rules will be required to adjust the posting dates in all derivation rules for that particular year . Can i ask ABAPER to include posting period in FMDERIVE . Need your comments on the same.

Thanks

[waldo]

Thanks Eli for your info.

sorry but I can't help you here, I don't use this new function (period budget).

But I have more doubts

Atif Farooq wrote:
I read from SAP library that budget period needs to be assigned to Fund Master. At the moment we have only two funds OPEX & CAPEX. Now what is point in assigning Budget period master records to these fund master. Do i have to open 12 fund master ?

Where did you read that? Could you please send me the link?

could you give us more info about this function between budget period and fund master?

Thanks for your time as allways.

Regards,

Oswald

[sjajodia]

Atif,

The prime purpose of the budget period is to identify the period of budget authority as required by US Federal budgeting requirements. The period is associated with the fund and checked such that the budget for that fund must be committed during the budget period.

As discussed on SCN Budget Period has been used by others to identify budgets for periods within the Fiscal Year. Please note that budget is always distributable by period even without the use of budget period. Budget Period is therefore necessary only when AVC by period is required. In general AVC by period is not a good practice as you now have to carry the residual budget forward at the end of each period.

As Eli already said there is no standard function to perform this carry forward. You can develop a function using the BAPI for object type BUS0050.

Thanks

Shyam

[Former Member · Accepted solution]

Atif,

We do not have budget period function turned on. From what I read about, the purpose of assigning period to fund is to restrict that fund from being budgeted in other periods. It is not something you have to do.

According to me, tt is just natural and logical that one wants to use the leftover budget from the prior periods. This function has to be in the control object derivation. Please read the link below:

http://help.sap.com/erp2005_ehp_06/helpdata/en/60/fe46d64e424551bedbe3c8dbf5fef7/frameset.htm

In the 'Features' section, it says

• You can derive the budget period value for control objects using the derivation strategy for control objects.
• You can assign the tolerance profile and the checking horizon per budget period value of the control object

Why don't you check and see whether in control object, you can make something like if the posting period is 1 checking horizon is curent period, if post period is 2, checking horizon is prior 1 period plus curent period, so on and so forth.

Regards,

Ming

[atif_farooq]

Hi Ming:

I think you got me wrong..I have stated in my post that we are not using Budget period. I just wanted to ask about the current option we have communicated to client . Fund assignment has been used to present months. Like for OPEX we have opened twelve Fund Master and same is for CAPEX.. I have designed my OPEX derivation rules with a combination of Posting date. E.g if posting date is 01.07.2013 to 31.07.2013 system should derive Fund OPEX-JULY, FC & CI..If we go with this approach then how can we use this approach in Assets where FM account assignment are derived at the time of asset creation and we have no posting date in AS01, it will come into picture only when acquisition will be posted to asset. Can you please guide us on this situation.

Regards

[Former Member]

Hi Atif,

Fund and budget period are two different characteristics. I would not use one dimention to represent the other. If we do so, there will always be consequences. I believe asset aquisition is just one of the many other scenarios that this design can not handle. 

Regards,

Ming

[atif_farooq]

Hi Ming:

As of today using object Fund for periodic budget posting and reporting has worked fine for me. For FI and MM postings it is working fine. Picking up fund dimension based on the date of transaction which gets filled in every FM related transaction no matter which module it relates to so this suffice our purpose of reporting .

Regards