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Budget structure in BCS

atif_farooq
Active Contributor
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Hi:

      I have not explored Budget structure area while configuring FM-BCS. I read SAP help regarding it but could not figure how it is used. I want to know in which circumstances do we need budget structure , what are budget addressed and posting address in it for. I was able to budget a fund center and trigger AVC control at the time of actual consumption of it without setting budget structure..Please guide.

Regards

1 ACCEPTED SOLUTION

iklovski
Active Contributor
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Hi Atif,

Budget structure is not mandatory and I know that from help.sap.com it's not clear. You can activate budget structure, if you are interested in managing budget/posting addresses, i.e. pre-defined combinations where you will be able to budget/post in FM. Suppose, you have fund centre and commitment item as your FM objects. Say, 10 fund centres and 10 commitment items. If you want that fund centre 'A' will be valid only with commitment items 3, 6, 7, and 9, and other combinations should be unavailable, then creation of budget structure could be essential. However, if you have confidence that the budget officer (or whoever is responsible for budget in your organization) know what he/she is doing, then you can also without budget structure. As in this case, budget officer won't put any budget on 'undesired' combinations, and therefore no potential errors would occur. Sometimes, budget structure could be useful also for the following: suppose, you have superior fund centres where you put the budget, and the posting is done on low-level centres. In this case, with budget structure, you can defined budget address derivation strategy, deriving superior centre as the place to look the budget for. This could be achieved with AVC control objects, but budget structure is more 'clean' solution for this, though, as I said, there is no monopoly of budget structure for this.

Regards,


Eli

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5 REPLIES 5

iklovski
Active Contributor
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Hi Atif,

Budget structure is not mandatory and I know that from help.sap.com it's not clear. You can activate budget structure, if you are interested in managing budget/posting addresses, i.e. pre-defined combinations where you will be able to budget/post in FM. Suppose, you have fund centre and commitment item as your FM objects. Say, 10 fund centres and 10 commitment items. If you want that fund centre 'A' will be valid only with commitment items 3, 6, 7, and 9, and other combinations should be unavailable, then creation of budget structure could be essential. However, if you have confidence that the budget officer (or whoever is responsible for budget in your organization) know what he/she is doing, then you can also without budget structure. As in this case, budget officer won't put any budget on 'undesired' combinations, and therefore no potential errors would occur. Sometimes, budget structure could be useful also for the following: suppose, you have superior fund centres where you put the budget, and the posting is done on low-level centres. In this case, with budget structure, you can defined budget address derivation strategy, deriving superior centre as the place to look the budget for. This could be achieved with AVC control objects, but budget structure is more 'clean' solution for this, though, as I said, there is no monopoly of budget structure for this.

Regards,


Eli

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Hi Eli:

I must say excellent interpretation.

Regards

Former Member
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This message was moderated.

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Hi Eli,

I´m new in the implementation on BCS so I also had this dilemma about budget address / posting address structure, but going forward, let´s say that the 10 commitment items are going to be available for my 10 funds center, so I understand that the creation of a budget structure is not a good option because, practically, all the universe of commitment items are going to be valid for all the universe of my funds center, right?

Now, let´s say that my chart of accounts is made up from 20 expenses accounts, but only 10 are going to be in the BCS AVC,does it interfere with the bugdet address structure? I was thinking that I could exclude the 10 accounts that are not going to be relevant in BCS only, without the creation of their commitment items, but is that correct?

Thank´s in advance.

iklovski
Active Contributor
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Hi Liliana,

With this business master data, I don't see any reason for making budget structure. Regarding your question of budgetary control (or its absence) for certain G/L accounts, you can easily solve it by assigning dummy/statistical commitment item to G/L accounts, which don't require budgetary control.

But, assignment to commitment item is necessary: you won't be able to post a document with FM active, without proper assignment to FM objects.


Regards,

Eli

P.S. Please, don't revive old threads in the future. Should you have a question, please, raise it in a separate thread.