Stop depreciation being budgeted

[atif_farooq]

Hi:

I do not want to budget depreciation expense so is it ok if i create commitment items related to deprecation expense gl with CI category 50 and financial transactions 3 ? Further i want to know that there are many GL which are expense by nature but are related to Production planning, like material consumption, variance accounts e.t.c OSS note is not clear about them how should commitment items for them will be created, will it be created with 50/3 ? Please guide me.

Regards

[iklovski · Accepted solution]

Hi,

Better create them with 30/3, but with statistical indicator. In this way, the budget won't be checked. For your other question - the same answer. By the way, you are not obliged to make 1-to-1 relationship between G/Ls and commitment items. If you are not interested in reporting and/or budget on certain CIs, you simply create one (several) and assign to it relevant G/L accounts.

Regards,

Eli

[atif_farooq]

Hi Eli:

Thanks for your useful input and yes i have already created one commitment master DEP and assigned it to all depreciation related GL . Eli now i am in configuration phase in development server , which will later on be transported to QAS and then finally to PRD upon go live so that us why i want to clear my doubts regarding CI category and Financial transaction for GL belonging to various account groups. OSS note 1466979 is not very clear about them.

There are certain balance sheet account groups like Share Capital & reserves,unappropriated profits,revaluation surplus,long term financing,long term advances, deferred liabilities,cash and bank balances e.t.c which are never subject to budgeting in our scope , now should i also create them with with 30/3 and keep keep them statistical or they should be created with 90/1. Please guide me through this.

Regards

[iklovski]

Balance sheet account, which you are not interested to manage budgetary-wise, could be defined as 50/2

[atif_farooq]

Hi Eli:

Should it not be 90/1 combination for Balance sheet account which i do not want to budget? System is not accepting 50/1 combination.

Regards

[iklovski]

Did I say 50/1, sorry I meant 50/2, of course.

[atif_farooq]

Hi Eli:

50 is for clearing and 2 is for revenue, how can be a balance sheet account be like this. Can you please explain me the logic of doing so..Will it make any difference if i create a commitment item with wrong commitment item category and financial transaction  (provided that Commitment items for budgeting 30/3 have been created correctly ). For instance if there is RM Consumption is GL account which is not budgetable for me, i create it with 90/1 rather than creating it with 30/3 with statistical indicator on it.  Please guide me how can it impact budgetary process.

Regards

[iklovski]

50/2 means basically that this CI is dummy and no FM document will be created (only totals table will be updated). That's one of the ways to deal with the accounts, where you don't want neither budget control nor FM document. If you are OK with creating FM document (though, there is no reason for this and you are simply increasing the volume of the tables), you can define CI as 30/3 or 30/2 and set the statistical flag. 90/1 is used more for cashing with further treatment for payment transfer.