Level of Budget control: WBS element or Network Activity

[Former Member]

Hi Experts

I have maintained budget based on cost plan arrived from NWA.

The availalbility check controls at activity level.

Example: Network contains Act1-INR 100000 for a component and Act2 for a service INR 50000.

At the time of generating PO for the component, there is mere possibility of change of price based on quotes.

But at this stage, the increase is not allowed, because Act1 is having budget 100000 only.

Similarly, the service activity cost in PR is an estimate.

The actual PO costs may decrease.

So, having availability check at WBS element rather than at each activity level is desirable.

Please suggest the possiility of such control

warm regards

ramSiva

[Former Member · Accepted solution]

Hi Ram Shiva,

Actually the availability control is available only at WBSE level and not at NWA level.

Av Control checks the Assigned Budget againt the Total Budget.

Assigned= Remaining Commitment due to open PR+ Remaining commitment from Open PO+ Actual costs+ Remaining Order Plan

In your case Remaining Order Plan is the value that you have planned in NWA and not yet converted to PR.

If you have planned 100000 in your NWA then Assigned=100000 due to Rem Order Plan

But once your release your NWA to generate a PR then Assigned=100000 but only due to PR Commitment (Rem order plan= zero now)

Further when PR is converted to PO then Assigned=10000 but only due to PO commitment. (Rem commitment due to PR=zero now)

Hence if you raise value in PO to say 120000 then Assigned value that system is checking against budget on WBSE is 120000 and not original 100000 from the NWA.

Because you gave budget to WBSE equal to plan value of NWA (100000) hence the system is checking 120000 assigned against the 100000 budget on WBSE.

As a solution you can increase the budget on the WBSE. Or while budgeting WBSE based on NWA plan value give a budget more than the plan value from NWA. Or in the availablity settings change the % utilization of budget on which error is triggered, to something more than 100% (say 105% or 110%) to allow for such variance in the planning due to change in value at PO level.

with regards,

ravi

[Former Member]

Ravi

Thank you very much for the detailed answer.

warm regards

ramSiva