How to Control Budget in project level

[Former Member]

Hi Experts,

i want to control budget project wise not wbs wise.

             WBS               Budget

For ex:  wbs 1                100

             wbs 2                100

             wbs 3                100

the above example i have budget overall for project 300. when i book the cost wbs1 is rs.150, it has to be allow the book the cost.

here my requirement is i want control the budget for project level only, not individual wbs wise.  so where we can control this budget for project level.

is there any standard process....

please suggest....

regards,

Siddu.

[Former Member]

Hi Siddu,

You can enter the values for the original budget of the individ­ual lower level WBS elements or at the L1 WBS; however, the budgeting for a project is usually pre­ceded by cost planning, which acts as an indicator for allocating budgets.

If you want to control the budget at project level then you can use the Top-Down Distribution of Budget. You don’t have to split the budget of a WBS element completely onto lower-level WBS elements. You can also distribute parts of the budget further if you want to control for particular WBSE, or you will not do the distribution of budget altogether. This means that you don’t have to perform budgeting to the lowest level of a project

If you want to control the budget at project level then your hierarchy should contain only 1 L1 WBSE and If you provide the budget for the L1 WBS, the part of the budget can be consumed by lower level WBS elements as the child WBS can consume the parent WBS budget and its vice versa is not allowed.

This you can do for the overall period or the Fiscal year wise. If you maintain the same in Fiscal years, then the same should be copy view to overall.

If you provide the values at the lower level WBSE the amount is already distributed and it can consume only the allocated budget. If the value is provided at its higher level the amount is still distributable and the lower level WBSE can consume the part or same, provided the budget is not consumed my other WBSE or distributed to other WBSE.

The hierarchy should be as follows

WBS Budget

For ex:  L1 wbs            300                 -------(same as project definition)

              L2 wbs 1     

L2 wbs 2     

L2 wbs 3              

In the above example you have budget for the project is 300. You book the cost 150 for wbs1

Hope it helps

Regards

[Former Member]

hi Siddu,

not sure if you have an answer or a work around for this, but wanted to add a point here -

if you want to control the budget at project/ lvl 1 wbs element then you should not distribute the budget to the lower level WBS elements.

In your example, if you have total budget 300 allotted to level 1 wbs element and did a posting on level 2 of 140 $ system will allow the posting.

vice versa, you have distributed the budget and for level 2 you have 100 $ and trying to post 140$ as cost will not work.

Its like giving a person 100$ and then asking him to buy a product of 140$

Hope it makes some sense, please let me know if it was off.

thanks

[Former Member]

Hi Sidhu,

One point I would like to add on, the scenario your are dealing with is bottom up control where you allocate budget at top Header WBS and the consume the actual of LMPO at lower level.

Hope you are clear by now with all the possible option receive from all of us.

Thanks

Regard's

Syed

[varshal_kachole3]

Hi,

Here is the Logic to check the budget:

• If the Budget is allocated to the WBS element to which the debit postings are made; the AVAC is checked at that level
• If the Budget is NOT allocated to the WBS Element to which the debit postings are made; the AVAC will check for the budgets allocated to the WBS Element which is a Level above the WBS in Question.
• So the budget check happens in a hierarchical uppward manner reaching to the Top Level WBS in case no budget is not assigned to the lower nodes.

Hope it helps!

Thanks and Regards,

Varshal Kachole

[Paulo_Vitoriano]

Hi Siddu,

You can structure the project to have single level 1 WBS-element (equal to the Project).  That can be enforced through the project profile, as well as simplify IM integration in the future (if relevant).

Cheers,

Paulo

[MTerence]

Hi Siddu,

These are excellent documents for Budget configuration in SAP PS

Regards

Terence

[Former Member]

Hi Maria,

thanks for reply,

My problem is i have budget for project over all is 300.

         i am going to distribute budget for WBS 1  is 100

                                                          WBS 2  is 100

                                                          WBS 3  is 100

Then i am going to book the cost(MM,FI) wbs 1 element is 140, it has to be allow the cost, because i have provide the budget for project overall is 300, i want check budget project level only not for wbs element wise. this is my client requirement. 

[MTerence]

Hi Siddu,

Go to OPS9 transaction, check the Budget profile, what settings you have made for Time frame.

Whether this is over all Budget is activated.

As informed by Paulo, Level 1 WBS element is equivalent to Project. So the Budget you are going to do at Level 1 WBS element only.

Go to CJ30, check the Top level will be level 1 WBS element.

If you have activited overall, i dont think you will not have budget issue for your client requirement

Regards

Terence

[Former Member]

Hi Maria,

Thanks for reply,

i agree with you, but i have activated budget profile is overall time frame is total values, whatever i mentioned above discussion wbs 1 means it's not level one wbs element it's the second level wbs element. project structure is   

     WBS Element     Budget

     AD-000001          300 this is overall budget for project.

     AD-000001-01     100

     AD-000001-02     100

     AD-000001-03     100

Then i am going to book the cost(MM,FI) wbs element AD-000001-01is 140, it has to be allow the cost, because i have provide the budget for project overall is 300, i want check budget project level only not for wbs element wise. this is my client requirement.

[MTerence]

Hi Siddu,

As per your example

WBS element AD-000001 (Top level) which has 300 in Budget

If you post cost for 140 in WBS element AD-000001-01, do system allow you to post or not ?

"i want check budget project level only not for wbs element wise. this is my client requirement" -

If you want to check for Project Level, i dont think system will allow you to check. You should check the Budget at Level 1 WBS element only.

Regards

Terence