Project Systems Budgeting by Cost Elements

[Archie-Hammer]

We have a requirement from our users to apply budget to projects segregated by cost elements. The though is this will enable better reporting and accountability for planning/actual/budget comparison.

I have searched and there have been recommendations for the use of funds management which appears to be a public sector module. Either way we are not licensed for the module.

thanks in advance,

Archie

[sanjeevc]

Hi,

I am agree with all above suggester like it can achieve by develop but it is very tricky, and can not achieve by standard sap budget functionality.

so check with abap as Atul shared his experience means it is possible to achieve by development.

Regards,

Sanjeev

[atul_rajmane]

Dear Archie,

I have worked on similar  kind of requirement with one of client as one of functional team member. Only, difference is they need to have budget control on cost elements determined in via Easy Cost Planning forms.

I can give few guide line on requirement based on this experience

1. Budgetary control on cost element is possible only via complex development. No Standard SAP route.

2. Do Unit costing i.e. Cost Element Planning on each of WBS. Else, you can developed ECP Costing model and take determine cost elements. Aim is to have Cost Planned on Cost Element.

3. De-bug standard budget program and check which are those exit call std. SAP budget program while raising SAP PR/PO, During Confirmation, MIGO and all.

- Tap those exits and put custom codes to check against defined cost element values.

- Since, every posting will happen against one or other cost element, through development we can always determine which cost element is getting post and compare it against planned cost of that cost element.

This is only a rough design based on my experience and logic. Suggestions always welcome for our other team members.

regards

Atul Rajmane

[former_member183879]

Hi Archie,

As everybody already said, it is only possible to do cost planning using cost element level, but you cannot control it as a budget.

An alternative approach would to do create as many WBS elements as the cost elements. This can be followed by creating a network with Cost only activities. To these activities we can assign the corresponding cost elements with their WBS elements.

Now you can do normal budgeting at the WBS level. Whenever the actual cost nears the budget control on a specific WBS element (as cost element gets posted with the values), the availability check will happen thus impacting the posting at the cost element level.

I dont see any other possibility of this happening.

[former_member210342]

Hi Archie,

you can do planning based on Cost elements,

But for , Budgeting can be done only on WBS-elements.

There is no such option to do budgeting over Cost-elements.

Thanks

Rahul

[Former Member]

Hi Archie,

Budgeting in case of Projects can only be done for WBS elements.

I don't think you can you can do budgeting segregated by cost elements using the PS module. I am not sure how Funds Management is related to the Public Sector module. Maybe you could talk to your FI/CO colleagues about your requirement.

They would be in a better position to help you out.

Regards,

Gokul

[Paulo_Vitoriano]

Hello Archie,

I think your post is missing a question mark, so not really sure what your question is about.

To have active availability control by individual accounts you need FM module, and that is quite heavy on master data.  Besides users can always post under different cost element and cheat the system, while hard stop (error message for budget availability) is rarely recommended.  Saying all that I would probably challenge the requirement.

I think that the standard budget control on a total amount + plan/actual real-time reports by cost element can perfectly cover it.  Maybe it is rather more a change management project and less a system functionality.

Regards,