Receipt based budgeting

[atif_farooq]

Hi:

Client has around 60 sponsored projects. For starting a sponsor projects client gets an approved budget amount say of 10M from a funding agency . Now this money will be received in installment or on basis of meeting some deliverable from client. Client initially post budget of 10M in system against approved budget heads like, salaries of principal consultants on projects , equipment to be procured for project e.t.c but since this amount is to be received in installment , client wants receipts based budgeting i-e for a particular sponsored project if client has received 2 M as 1st installment then , consumption could only be made within this 2 M budget not against 10 M. I am confused how to cater this requirement in system. Should both commitment based and payment based budgeting be used in FM or there are other ways of managing it. Please guide.

Regards

[Former Member · Accepted solution]

Hi

I though it would be better to use release functionality, So that budget consumption will  happen from Released budget only(Ex; 2M). and also by using commitment and payment budgets you will carry the requirement.

Regards

Rao

[iklovski]

Hi,

There are different ways of managing it. One is 'release' mentioned already, another would be creating a budget type which is not consumable (in AVC), and when it's 'time' to be consumed you made a transfer to another budget type. Also, you can think of using RIB functionality, when basically a revenue document would be used as a trigger to inscribe your budget. Also, you cna inscribe the budget and use block funds document, etc.

It's up to you to pick up the most attractive one

Regards,

Eli

[atif_farooq]

Hi:

RIB seems to be a more profound solution but in IMG i am unable to understated how will it be designed.

I have revenue GL whose commitment item has been created with 30/2 and statistical indicator. Total allocated budget to project is 10000 USD, i have posted it against fund center ABC & approved budget heads (commitments) for project in FMBB .Now from donor as a first installment i receive 3000 $ as an incoming payment. I debit donor account and credit revenue account in FB70 & posted and cleared receipts in F-28...

I have used fund center XYZ with revenue GL. Now my aim is that project related expenditure should exceed beyond 3000 USD which is the actual budget receipts against project. How will it be catered in RIB  . I have created two budget types one for revenue increasing source (what will it be ) and other for revenue increasing target ..

Regards

[atif_farooq]

Hi:

Any update on above .

[CesarCarreno]

you should check the Revenue-Based Expenditure functionality.

In the IMG look at Budget Control System (BCS) -> Availability Control -> Other Settings for Availability Control -> Commitment/Actual Values: Define Filter for Revenue-Based Expenditures and Assign Revenue-Based Expenditure Settings to Availability Control Ledger

Regards

César