SAP Ebooks

SAP Monthly Budget Control in Funds management

Post Series: learn funds management

SAP has designed FM BCS module to control budget on annual basis and do not give any budget control on the monthly basis or any period specific basis.

However FM BCS system allows you to put the specific budget or distribute the budget for each month or specific period. You will be able to get the reports on monthly budget (period wise) and monthly commitment and expenses.

Sill in several business scenarios you may need to control the budget on monthly level. I suggest you to use some work around with other functionality of budget control system to achieve the objective of control.

For SAP monthly budget control, I can propose you to explore further in one of the following option

Option I

Use the budget release functionality: FMBCS allow you to configure the transaction for entry of budget and release the budget separately. Budget will be controlled against your released budget only. FM BCS System will also allow you to release the budget on monthly level or quarterly level or as per required… from one screen only.

Using this functionality is very simple and can be used for depends upon actual need of the organization. You can get the report based on total budget, released budget, commitment and actual and available budget.

On the cons side of this, this gives you some limitation for creation of purchase order which belongs for future multiple periods. You need to careful about it.

Option II

Use multiple budgets: You may use separate budget for Payment Budget and Commitment Budget and update your availability control ledger as per your need. This will solve the above issue mention in the Option I. You may check your commitment of PO in commitment budget but actual GR / Invoice should be checked in payment budget. You need to enter / release the payment budget on monthly or quarterly basis depends upon your need.

Please note this is sophisticated way to manage the situation. You need to be at professional / expert level to implement this.

I suggest you to test your system and understand your solution very well before applying in any production environment.  It may put business on risk.

Leave a Reply

Your email address will not be published. Required fields are marked *