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Commitment and financial budgets in FM

atif_farooq
Active Contributor
0 Kudos

Hi:

I have seen three types of budgeting in FM-BCS. Payment budget, commitment budget and financial budget , to date i have worked on payment budgets and its all related configuration.  I have ready about these three types on SAP help but not very clear about these.Which budget will be offered to client..For me Payment budget works fine bit if client asks for other two types as well how can i make him clear about commitment and financial budget and their intended use in FM.

Regards

1 ACCEPTED SOLUTION

iklovski
Active Contributor
0 Kudos

Hi,

By financial budget, do you mean budgetary ledger? It's very specific funcitonality, which should not be implemented without real need. As for commitment and payment budget, it's very simple: if your client has the same budget for commitment and for payment, then you should choose update profile for 'payment' budget only. But some clients would have different budget for commitment and payments, depending of their cash-flow and financial regulations. Imagine that a client can commit (make POs) for 1M in year X, but he has only 750K for this year for payments. In this case, both  commitment and payment budget ledgers should be implemented.

Regards,

Eli

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3 REPLIES 3

iklovski
Active Contributor
0 Kudos

Hi,

By financial budget, do you mean budgetary ledger? It's very specific funcitonality, which should not be implemented without real need. As for commitment and payment budget, it's very simple: if your client has the same budget for commitment and for payment, then you should choose update profile for 'payment' budget only. But some clients would have different budget for commitment and payments, depending of their cash-flow and financial regulations. Imagine that a client can commit (make POs) for 1M in year X, but he has only 750K for this year for payments. In this case, both  commitment and payment budget ledgers should be implemented.

Regards,

Eli

0 Kudos

Hi Ely

Please you have any example of this case

I try configured but not end ok.

😞

waldo
Contributor
0 Kudos

Atif Farooq wrote:

Hi:

I have seen three types of budgeting in FM-BCS. Payment budget, commitment budget and financial budget (...)

Hello my friends!

Why three types!?

Please add more details about this.

Thanks!