Monitor budgeting of the contracts in SAP ERP/old FM

[slavisalecic]

Dear colleagues,

We have an customer in goverment sector that has used SAP ERP Funds Managament/old version where the budget execution is done.

In order to track the budget of the contracts (not only the comitment items), ususaly for the big project we need to set up a WBS element in PS  or Internal Order in CO, so do you have some additional information about the integration...

Thanks in advance.

Regards,
Slavisa

[iklovski]

Hi,

Could you please clarify your question? What do you mean by 'old version'? Contracts budget management could be arranged with the creation of Earmarked Funds. As of SAP 6.04 there is a possibility to generate EMFs upon the creation of a contract.

Regards;

Eli

[slavisalecic]

Hello,

Thanks for the quicq answer. As far as I know there are 2 version of Funds Management. Old one and new one with the budget control system.

Customer is used SAP ERP 6.0, but the system is implemented in 2004.

I have found that funded program can be used for this purpose, plus derivation rules connected to WBS and IO, but what is the solution when they do not activate BCS?

Thanks and Regards,
Slavisa

[iklovski]

Hi,

Do you speak about Former and BCS? It has no link to actual/commitment management; it's related only to how the budget is registered. Hence, BCS is not relevant here. Also, I cannot see why 'funded program'? What is the link between managing contracts in PSM-FM and using additional FM assignment, as funded program?

Regards,

Eli

[sjajodia]

Slavisa,

You cannot enter budget for funded programs if you do not use BCS. Please see https://help.sap.com/saphelp_erp60_sp/helpdata/en/74/35160eea86034aa4166151005e1a93/content.htm?fram...

Thanks

Shyam

[slavisalecic]

Hello colleagues,

Thanks for the answer till now.

I am aware that funded program is not possible to be use, as they do not have a BCS. I would lilke to check weather is possible to connect anyhow the current FM objects  (commitment item, fund centers and funds) with WBS and Internal order.

As they have FI modul and GL accounts activated my idea was to activate controlling, cost elements which requires any CO object to be linked. In our case we will have IO and WBS elements used for the statistical tracking of the budget of some long term contracts.

Thanks in advance.

Regards,
Slavisa

[iklovski]

Hi,

You can perfectly derive your current FM objects from WBS and I/O via FMDERIVE functionality. But, please, don't mix CO budget and PSM-FM: these two modules are not linked between each other. If you want to manage budget in CO, why doing so also in FM?

Regards,

Eli

[slavisalecic]

Hello,

I just would like to use CO object for the tracking the budget as with the current version that they have used it is not possible.

https://help.sap.com/saphelp_erp60_sp/helpdata/en/74/35160eea86034aa4166151005e1a93/content.htm?fram...

Regards,
Slavisa

[iklovski]

You cannot use funded program with Former, but, again,

a) why would you need a funded program?

b) why would you need to duplicate budget control in FM, if you have it in CO

Eli

[sjajodia]

Slavisa,

There are some limitations in CO Budgeting in comparison with FM Budgeting:

1. If using WBS or Internal Order budget, you can only define a total budget for an object and not a budget by cost element.

2. If using CO Planning, there is no standard check while posting against a plan.

You can have a CO Object appear in FM commitment and actual tables but budgeting against a CO Object is not possible in FM.

Thanks

Shyam

[slavisalecic]

Hello colleagues,

Thanks for the answer till now. Meybe I was not 100 % clear from the begining.

Our customer alredy implemented former FM - budget execution system, plus FI. So now, we are looking for the solution how to statisticaly track long term projects/contracts.

So in order to follwo phased contracts we need to use a WBS structure where we will put the budgeted figures, but in order to link some how the current Cost GL account we need to specify these accounts as a cost element.

If you have some way around please let me know.

Thanks in advance.

Regards,
Slavisa

[iklovski]

Hi,

If you have to control the budget on G/L account level, then you have to do it via PSM-FM. Of course, there are workarounds to do it also in CO, but I wouldn't recommend them. However, here I'm puzzled with your word 'statistically'. If you don't want to implement stopping budget control, then why not following the figures in CO. You can do the planning on the level of I/O (or WBS) and cost element, and you will have the actuals posted against it. Stopping control of budget in CO is possible only on controlling object level, i.e. without cost element as a part of assignment. But, since you tell that the follow-up is statistical only, you will do perfectly with planning.

If however, you want really to apply budget control with exceed errors, then, as I mentioned, you have to do it in PSM-FM. Now, what FM object to use in order to tackle WBS is the question. If you cannot use fund centre, then you have to go for BCS. There, you will be able either to use funded program, as you already know, or implement different ledgers in BCS-AVC defining one of them to work on fund centres which represent WBS and the main one on fund centres, which represent your main entities.

Regards,

Eli