Budgeting - Queries

[Former Member]

Hello,

I have some queries on Budgeting and Planning, please find them below-

1. Can budgeting would be possible on period wise basis?

2. Can the budgeted values could be same as planned values? If yes, then why planning (CJ40) is required?

3. If I can plan some costs to activities (via material or WC etc), then why planning required for the WBS in CJ40?

4. If I can plan my WBS in CJ40 and utilize the same planned values for N/W and Activitiesu2026 then why the question 3 (above) would be used?

Thanks for your time and understanding.

Regards,

Sumanth.

[Former Member · Accepted solution]

1. Can budgeting would be possible on period wise basis?

No. As of now SAP doesn't have this facility of Budgeting period wise. This is an option many of the businesses require. Maybe SaP will come out with this functionality in their future releases/enhancements.

2. Can the budgeted values could be same as planned values? If yes, then why planning (CJ40) is required?

Budgeted values can be same as planned values. There is an option in CJ30 to copy the planned values as your budget values.

3. If I can plan some costs to activities (via material or WC etc), then why planning required for the WBS in CJ40?

Planning via CJ40 is just one of the many options that SAP has provided. Its also called Hierarchical/Structure Planning. Its entirely the decision made with respect to your business process as to which type of planning you would like to use. Planning costs using network activities is called Network costing. This is widely used as it gives you proper control over the project. This also makes it easy to analyse the different variances in your project.

4. If I can plan my WBS in CJ40 and utilize the same planned values for N/W and Activitiesu2026 then why the question 3 (above) would be used?

Answer same as above.

Apart from the answere provided above i would strongly recommend you to go through SAP help once. Your concepts with respect to project cost planning will be clear.

[Former Member · Accepted solution]

Hi Nitin /Gokul,

Thanks a lot for your responses.

The link was very helpful and surely i will take more information from the same /SAP help.

Regards,

Sumanth.

[Former Member]

Hi Sumanth,

Can budgeting would be possible on period wise basis

Budgeting is done only year wise and not on period wise. But in CJI8 you have reference as of which month the budgeting was posted.

Can the budgeted values could be same as planned values? If yes, then why planning (CJ40) is required

Not necessary as Planned values are just estimated costs for Project , whereas Budget is allocated fund for Project.

Eg Plan costs is 1000 , but management has deicded to budget only 800

If I can plan some costs to activities (via material or WC etc), then why planning required for the WBS in CJ40

WBS element planning can be used as Rough Cost estimate, whereas Activities serves as detail with actual planning.

Refer to http://help.sap.com/saphelp_47x200/helpdata/en/4c/226d8d46e611d189470000e829fbbd/content.htm

Thanks,

Nitin