Budget Control in SAP

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Budget Control

•For controlling purpose, Budget Availability Control for AFE has been activated in SAP
•The Availability Control will calculate Budget Availability (remaining value percentage) based on budget set on lowest WBS level (for posting) compared to the spending (commitment + actual)
–Budget commitment : Budget reservation for consumption
–Budget actual : Budget consuming posting data
•Budget Availability Control :
–Warning on 70% spending
–Error on 100% spending
•If any budget revision made to the respective AFE / Cost Center, budget control validations will refer to the revised budget (not the original)

Budget Monitoring
a. Original Budget   = Amount budget uploaded (tcode: CJ30)
b. Supplement   = Additional budget amount for revision (tcode : CJ37)
c. Return   = Less budget amount for revision (tcode : CJ38)
d. Total Budget   = Total budget release (tcode : CJ32)
e. Actual  = Total amount from actual posting, exclude settlement
f. Commitment   = Amount from PR, PO, and Reservation
g. Total Cost   = Actual + Commitment
h. Usage (%)   = Total Cost / Total Budget
i. Remaining (%)   = 100% - (Total Cost/Total Budget)%

Budget Revision
•Budget revision proposal should be addressed to VP Finance & Performance along with the proper justifications.
•Once the budget revision proposal is approved by VP Finance & Performance, it should be informed to Accounting for supplement & return process in SAP

•Budget Commitment in SAP is on :
–Purchase Requisition Final Approval
–Purchase Order Final Approval (including VAT)
•Budget Actualization in SAP is on :
–Service : Service Entry Approval
–Goods :  Goods Issue posting

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