Tracking of budget using SAP contract management

[Former Member]

Hi,

We have budget for each contract entered and approved in another system.  We are able to extract this information into SAP.  We are currently evaluating whether to use SAP PS WBS element or SAP IO to store the budget amount.  These items are CAPEX in nature.

Does anyone have any experience or inputs on the advantage of using WBS or IO to store the budget amount?

Appreciate your inputs for sharing purposes.  Thanks!

[Former Member]

hi,

I would like to add the following:

If we use WBS, must we carry out settlement?  Can we treat it like statistical order where settlement is not required?

Also, wanted to elaborate that these items which are CAPEX in nature are like upgrading of a building, enhancement to different parts of a building.

[Paulo_Vitoriano]

Hi,

The advantage of the WBS is that they can be managed as part of the bigger structure.  Internal orders are more difficult to organize into hierarchy, not from the system perspective, but from the usability perspective.

No need for settlement, that is controlled by the settlement profile.  On the other hand if that is CAPEX it sounds like you will need to capitalize it to an asset.

Regards,

Paulo

[Former Member]

Hi,

Thanks for your reply. Just to add that for these CAPEX items, we do not use AUC at the moment.  We will set the depreciation key to '0000' and update the depreciation key when asset is ready for depreciation.

Regards.