Distribute the released budget of parent WBS to its child WBS

[Former Member]

Dear Experts,

We have a parent WBS A and it have 5 child WBS. And in our current scenario we have assigned & released the budget at parent level directly(as per top-down planning approach).

But Now our business requirement is to distribute the  budget of parent WBS to its child(i.e. bottom up approach) as it will be easy to monitor the budget. I have distributed the budget of parent WBS to its child using CJ30.

But at the time of releasing using CJ32 it gave me the error "Over all release is less than distributed release"

So is there any way for distributing the released budget to child level after some procurement. Please suggest if it can be possible.

Note: There is also some assigned budget in CJ32.

Regards

Shishir

[sunil_yadav2 · Accepted solution]

Dear Srivastva,

Please check whether you have procurement at top level WBS if yes than this will not allow you to reduce budget less than procurement. otherwise you can change the budget according to you.

thanks

Sunil

[Former Member · Accepted solution]

Hi Sunil,

Firstly thanks for response.

Yes we have done some procurement at top level WBS.So According to rule it will not allow to distribute.

But If we add-up some extra budget(as equal to procured amount) to the budget to be distributed at each of its child and then perform total up, then could it be possible?

Regards

Shishir

[sunil_yadav2 · Accepted solution]

Dear Shishir,

if you have made procurement it means you have consumed you budget at top level so its not possible to remove that amount.

like budget of top WBS -10000

procurement - 5000

so you can able to remove/ distribute only rest 5000 to lower levels.

So if you require to distribute to lower level more than 5000 so you need extra budget for this.

L1 WBS-12000 (Bcos 5000 is already used for procurement so distributable is only 7000)

L2 WBS-3000

L2 WBS-4000

Thanks

Sunil

[sanjeevc · Accepted solution]

yes you right assume sense of budgeting if you are using budget distribution from single window then you continue your process.

as total up budget is 1 lac

you can consume 1 lac at any level as child wbss.

in case your system tolerance limit is more then 100% as 105 with that setting you can use 5% of total budget. but activity type should not be assign as 3 = Error message

Regards,

Sanjeev

[Former Member · Accepted solution]

Hi Sunil,

Ok I agree, but suppose we if we assign : L2 = 3000, L3 = 4000.

and then perform total up then it will roll up 7000 (3000+4000)  to header i.e. on L1. So in this case budget exceed error will show.

Regards

Shishir

[sunil_yadav2 · Accepted solution]

Dear Shishir,

in this case budget will be as below:

L1-12000

L2-3000

L2-4000

so where is the issue of budget exceed. 5000 of L1 is already used and rest you will able to use at lower level. otherwise you have to shift the procurement to lower level.

thanks

Sunil

[Former Member]

Hi,

Whenever you use total up, error message will occur during saving. You have to keep this in mind throughout the life cycle of project. If you can release 100% then there is no issue.

Regards,

Pranav

[Former Member]

Dear Gurus,

Thanks for your quick responses. Now my confusion is clear and issue is resolved.

Regards

Shishir

[Former Member]

Avoid the use of Total Up. Do manual calculation.

[Former Member]

Hi Pranav,

yes it can only possible by avoiding total up function. But in future if we perform total up in that project structure,  what will be the impact of this?

Sunil>> How can we shift procurement to lower level?

Regards

Shishir

[sunil_yadav2]

Dear Shishir,

if you have created PR using ME51N so only you have to do is change account assignment to next level WBS.

If you have assigned material component to WBS than drag and drop to any other location or other WBS.

Note: this is possible only when you are drag n drop within same Network. Not allow in other network.

Please check.

thanks

Sunil

[Former Member]

Hi Srivastava,

In case if you have raised indents on higher level then try to move the assigned networks to child WBS. Try this in quality server first.

Along this I just want to inform you that budgeting on lower level will lead to better control but less flexibility. So analyze pros & cons before moving. Besides this It is not advisable to change budgeting level after transaction.

Regards,

Pranav