Budgeting projects in SAP PS
In SAP Project System, Budgeting enables the monitoring of assigned funds and prevent budget overruns.
The approved cost structure for executing a project is documented by distributing the budget to the WBS elements of this project. This typically occurs during the approval phase which means before the effective start of the project execution phase.
Project reporting in SAP PS allows for the evaluation of the budget values together with the planned and actual costs.
Budgets can only be assigned to WBS elements in the PS module. Networks cannot be budgeted but costs assigned to these networks or network activities are however considered during the availability control.
Budgeting functions in SAP :
Original Budget :
An original budget can be maintained for a project in SAP PS via the appropriate budget transaction (see PS transactions section). A budget can be defined as an overall budget or distributed by year. This can be configured int the budget profile.
Budget Updates :
Budget updates are used to change the project budget. A distinction is made between budget supplements, budget returns and budget transfers.
The advantage of using budget updates instead of changing the original budget is that the original budget remains unchanged. This makes it possible to compare the original budget with the current budget of the project.
A Budget supplement is an increase in the project budget. There are 2 transactions for budget supplements; CJ36 and CJ37.
CJ37 makes it possible to add budget as long as there is still distributable budget available. CJ36 adds to the existing budget and so increases the total budget of the project.
Budget returns are used to reduce the current budget. You can use transactions CJ35 and CJ38 to post budget returns.
Budget transfers are used to transfer budget from a WBS Element to another WBS Element. Transfer between differents projects is possible.
Budget Release :
This is an additional step that can be executed to authorize the budget for a project. The corresponding transaction for budget release is CJ32.
If you decide to use this functionality you will have an additional step to carry out before executing a project.
Budget Carry-forward :
Budget carry-forward provides the option to transfer a budget that was not consumed for a project within a fiscal year into the following fiscal year. This is done with transaction CJCO.
Availability Control :
Availability control in the budgeting process within SAP PS checks the budget vs the planned, commitments and actual costs. This provides the system with the functionality of preventing budget overruns before they occur. Various configuration options are available to tailor the behavior of the availability control process to particular business requirements.