!!!! Committment & Actuals w/o Budget!!!!

[Former Member]

Hi PS Experts,

Scenerio:

We have one project, which have no Budget(Original+Suppliment) but the actuals and commitments are viewing.

Can I know the logic how the commitments and actuals are coming without Budgeting( Here Budget =Zero)

Please give me some hint or solution for the above problem.

Its very urgent..

Thanks in advance.

[Former Member · Accepted solution]

Hi Sanju,

sreenivas had hit the nail right on its head.

Budgetting is not an mandatory step. but commitment calculation and actual calulations are done by the system in any case if controlling is integrated.

Say for a project I create a PO amount 100 Euros it goes to CO as commitment cost.

When I post a GR for 20 Euros. The actual cost becomes 20 Euors and Commitment is reduced to 80 Euros.

generally people confuse between planned cost and commitment. Planned cost will remain 100 Euros through out.

Commitment gives a idea to the controlling dept as what is potential cash reserves need during the project at any point in time.

Regards,

Ramesh.

[Former Member · Accepted solution]

Thanks a lot... to Srineevas and Ramesh..

Regards,

Sanju.

[Former Member]

Commitments (if commitment is updated at COA level) and actuals are independent if you do budgeting or not.

Commitments arise as result of creation of purchase requisiation or purchase order etc., and actuals could be any postings FI documents, materials etc.,

If you enter budgets against WBS, you can then use them in reporting (if passive availability control) and in case of active availability control i.e., commitments and actuals (sum) are always compared with budgets and issue warning,error messages if you exceed the available budget.

Regards

Sreenivas