Budget Consumption

[Former Member]

Dear All,

I have one scenario where, Budget will be alloted to one WBSE for Purchase of raw materials only. In this WBSE, both Purchase process & inhouse manufacturing will take place. By this way manufacturing process will also consume alloted Budget in production order. I would like to know how we will restrict budget consumtion for Purchase Process only i.e. releasing Purchase Orders only, not for production order.

Your earliest suggestion is highly appreciable.

Regards,

Biplab

[Former Member]

HI Biplab

Normal scenario we will assign bugdets to WBS elements for various actions to be carried out in a project execution.

With my experience there is no <b>split type allocation of budget provisions in WBSe</b> so that we can control the expenses against each activity.

In my opinion, it is bettwer to have two WBSe with budget allocations so that it would be better to keep track of expenses.

Let some one through light on this since I had a similar experience and could not do such type split allocation but simply followed two different WBSe.

Hope this will solve your problem.

Enjoy SAP....

Regards

Sudhakar

[Former Member]

Hi Sudhakar,

Thanks for your response. I would like to inform you two WBSE can't be created to avoid material requirment set up during MRP run. In the tolerance limit of Budget profile, Purchase order activity has only selected. Please suggest any alternative can happen to fix the issue.

Regards,

Biplab

[Former Member]

Dear Biplab

Have you considered the use of exempt cost element?

Please see the implementation guide (IMG) under Project System ® Costs ® Budget ® Specify Exempt Cost Elements (Transaction OPTK).

Also, please review note 178837

Hope this helps.

Best regards

Martina

[Former Member]

Hi Biplab

Would appreciate if you could let me know the outcome after implementing Martina's suggestions.

Waiting for hear from you.

Enjoy SAP....

Regards

Sudhakar

[Former Member]

Hi Martina

Would appreciate if you elaborate on "use of exempt cost elements"? for my information and future references.

Hope you will not mind to share your experiences with all of us.

Enjoy SAP...

Regards

Sudhakar

[Former Member]

Dear Sudhakar and Biplab,

It is poosible to set, in customizing, certain cost elements as "exempt cost elements". This means that postings for these cost elements will not be taken into consideration in the Budget Assigned Value and therefore, the budget will not be actually consumed.

So in this case, you should use different cost elements for the PO and for the production orders and set the PP order cost elements as "exempt cost elements".

Hope this helps.

Regards

Martina

[Former Member]

Hi Martina

Thanks a lot for your useful tips...

Regards

Sudhakar

[Former Member]

Dear Martina,

Thanks a lot for your prompt response. I tested this scenarios considering the exempt cost elements in budget. Budget consumption is happening properly, but in the budget & cost reports, correct figure is n't coming pertaining actual budget consumption.

Say Budget is alloted only for purchase of raw materials, but in the reports activity cost from production order is also reflecting which shows consumption of budget. This is leads to confusion in the reports.

I would like to request you to look into the matter & suggest me.

Thank you for your coopearation.

Best Regards,

Biplab

[Former Member]

Biplab,

Yes, I´m afraid this is correct

PS hierarchy reports are generated reports and can that way not

refer to the settings for budgeting like the exempt cost elements.

But you can adapt the reports to do this:

1. Please assign the exempt cost elements to separate value categories

>taking into account note 676123 !!!

2. Rebuild the project information database for the project.

3. Make a copy of the report form.

4. Adjust the column selection conditions by controlling the value

category selection.

5. Create a new hierarchy report with this form WITHOUT copying from

a source!!! (otherwise the new report will get the report form of

the source report instead of the new one you just created).

Hope this clarifies.

Regards

Martina