Budget based on cost element
Is it possible to prepare a budget based on cost element? because I have to prepare a budget for WBS as well as Internal Order based on cost element.
As i know, planning will be possible on cost element wise for internal order through KPF6.
And also i want to know is there any link between planning and budget. Like Budget value always should be the lower amount then the plan value. or system will not allow to enter the budget value exceed the plan value.
Can any one guide me on this.
Sridhar Vasudevan replied
Planning is separate from budgeting and not linked to it. Planning is only for infomative and comparison purpose.
Budget can exceed plan values. Under budgeting there an overall budget which can be distributed to year wise. The sum of the years' budget shall not exceed the overall budget.
You may explore more on Funds management BCS. budget control system.