Planning vs Budgeting

[lenastodal]

Can you please explain the difference between planning and budgeting with respect to WBS elements.

Arent they the same thing?

Why do you need both?

[lenastodal]

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[sanilbhandari]

Hi lisa.cardoza

Theoretically, planning is related to strategies and long term management of your resources to achieve your business goals while budgeting is meant for managing and monitoring how you spend your funds in your day-to-day transactions. In SAP, you can multiple versions of planning of resources (funds) at multiple levels. However, the actuals may vary and can increase beyond the planning value. However, budgeting has a check, where you cannot exceed the allocated budget value, not even a cent. So a planning version can be adopted as a budget which you can than allow to keep expenses in check. This is available as feature called as Availability check in SAP.

From a BW Perspective, these are two different info sets to fetch data into BW.

Hope that helps

Thanks & Regards

Sanil Bhandari

[Former Member]

Thank you!