The budget check is only applied if on the responsible cost center of the project is budget check enabled (So if the responsible cost center is not budget check enabled the related projects are not subject to budget check as well.No time constraints (like year to period or alike).The budget check rule on project task level is pretty simple:Īvailable Budget = Project Task Cost Estimate – (Actuals + Encumbrances) I’m using the report ‘ Project Plan Values’ to illustrate against which estimated cost the budget check will be executed. Project Cost Estimate on Project Task Level The budget against which the budget check is performed is based on the entire project task planning consisting of planning This assures a good balance between budget control and giving the project responsible room to adjust during execution. The project responsible though can switch between different expense types if the overall project task cost estimate is not exceeded. The basic idea that has been implemented is that in case budget check is enabled for projects it is the project managers responsibility on project task level to execute the task within budget defined by the project cost estimate. Direct cost projects and budget check (except public sector edition) An explicit budget check activation by project is not supported. The direct cost projects are subject to budget check if the responsible cost center is subject to budget check. Cost collector projects are subject to budget check if the cost center is subject budget check to which the cost will be settled. *The budget check must be activated on cost center level.
If a project cost estimate exists it is not relevant for budget check. The check is conducted against the released budget of the direct cost project. In case a financial planning and budget release for direct cost projects exist it will be ignored. Note: there is no constraint on accounting periods. It is assumed that the project manager is authorized to substitute certain categories as long as the entire spent is below the project cost estimate. Project cost estimate on project task level – (actuals + encumbrances) The check is conducted against the budget of the cost center against which the postings will be settled to. Released budget YTP – (actuals** + encumbrances**)Īt granularity of budget category**full year The following tables illustrate these differences All industries – except public sector edition Account Assignment Please note that SAP has implemented a different logic dependent on the industry and account assignment. All other project types are not supported.
Cost centers and assigned cost collector projects that automatically settle against the cost center.The budget check is available for purchasing and supplier invoice scenarios with an account assignment to: Upfront, it is not spectacular but a very effective means to control spending behavior.Įxample Budget Check – Budget Exceeded Cost centers and supported project types (in overhead cost management) But before explaining the details I would like to show how the activated budget check veto’s the order or change of a purchase order if the budget is exceeded. With simple examples the rationale behind these different implementations is explained. The emphasis of this blog post is to stress the differences in detail how the budget check is implemented.
#Budget in sap b1 series#
This is a detailed blog post of a blog post series in context of SAP Business ByDesign capabilities related to active budget control: see main blog post Active Budget Control in SAP Business ByDesign Overview
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