Budgeting in projects

Hi
Without funds management, how can we have a material based (cost element based) control of budgets in WBS elements?
Kindly give some thoughts on this.
Thanks and best regards
Srikrishna

Hi,
Scenario here is ,
Budget will be 1000 rs. Distribution is 800 rs to material and 200 rs to labor or other costs.
If we set commitment check i.e. check PRs and POs during availability check.....it will check against 1000 rs. But it should check Procurements i.e. PRs and POs against 800 rs not 1000 rs. Here , distribution is not constant , else we can handle by setting % tolerance for POs. I mean if 80% of budget is always distributed to material, I can set tolerance limit for POs as 80%. But it is not so.
Hope I have clarified the scenario.
Thanks
Saikishore Ganga.

Similar Messages

Error while mantain budget for project

Hi,
I maintained budget for project CJ30 in IDES as follows:
1. Sellect all Item --> copy view --> choose planned total
2. Entry: Percentage = 100%, Overwrite option
2. All values is copied from Column Planned Total to column Budget
3. Save
4. Error message:
Item WBS element A-60000 budget exceeded
Message no. BP604
Diagnosis
In document item WBS element A-60000, budget for fiscal year 2008 was exceeded by 2.763,26 EUR.
can anybody help me to solve the problem?
Thank you
Long

Hai Long,
For getting BCWS , you should maintain Progress version. DO following in config settings..
1) Project Sys -
Progress -
Progress analysis -
Maintain Progress version.
2) Select Progress version 100 and copy the same and give new name.
3) Go to details.
4) Select option 3 ( if basis for Progress is Budget) 4 ( If it is planned cost) for Earned Value Basis.
5) Select option 2 ( if basis for Progress is Budget) 7 ( If it is planned cost) for POC weighting.
6) Save it.
7) In your project select Progress tab in detail screen of WBSE and Activity and select above Progress version, select select cost propotional ( Or as suitable for ur requirement) plan and actual ( it is adviseable to have plan and actual same always to have clarity in results)
8) Schedule and see report in CN41N.
Please post your observations
Thanks
Saikishore Ganga.

Budgeting in project system

Dear All
Can anyone explain me about the allocating a budget from planned cost to a project ,I am understanding if i am allocated the 100% planned cost to a project,I am not understanding what is distributed,distributable,remainder.
Regards&Thanks
P.Srinivasan

Hi srinivasan,
The concept of Distribution comes when you either directly Budget your project Or when you have converted the planned total to the Budget. Both the operations can be done in CJ30.
When you copy the planned amount to the Budgeted amount in CJ30, the Column Planned total is updated.
When you prepare a Budget, its generally Total up from the lower level WBS element. Distribution of the Budget is generally Top down.
Firstly when you allocate the budget in the Budget Column, then the same will immediately appear in the Current Budget and Distributable. This means that the Distributable amount is ready to be distributed to lower level WBS elements. You can enter the required amount directly under the Column Budget of the corresponding lower level WBS element. Once you do this, the Column Distributed of the higher WBS element is updated, by the amount which is Distributed.
The column Assigned is updated once you have assigned any cost to the project. (Commitment plus Actual)
If you are working with Release Function of the Budget ( CJ32), then the Column Release will be updated ( which can be seen in CJ30). In this case, you will be able to use only the released budget and not the Current budget.
Hope this explanation helps.
Warm regards,
Srinivas Potluri

Remove budget in Project System from prior fiscal years

Hello,
Budget control has been activated in PS. In PS, it is on annual budget so there's budget and actuals in FY 2003, 2004, 2005, 2006, & 2007. Is there a way to remove the annual budget in those Fiscal Years? I've deactivated budget control using tcode CJBW. Once budget control is deactivated, I tried removing the budget but it's giving an error "budget exceeded."
Is there a way to remove budget in PS for prior fiscal years?
Thanks.

hi,
as per my knowledge, you had already de-activated the budget control.
so, my Q is why do u have to remove/delet the budget, when the system has no control of budget on project.
regards
parikshit

MSS Budget and Project functionalities

Hi Gurus,
What modules need to be implemented in HR ECC in order to activate Budget and Project functionalities in MSS? Please advice.
Thanks
Francis.

please read here
http://help.sap.com/erp2005_ehp_04/helpdata/EN/2e/5a5d45d9f24fbdb06be2ff53651c3e/frameset.htm

BAPI   for   change budget in project   -   TCODE   CJ30

Hello   everyone ,
I want to change budget for A project   in tcode   CJ30 ,
bdc IS not suitble ,     the spec is to change one WBS ' s BUDGET money ,
I can't find the way to do it in BAPI    BAPI_PROJECT_MAINTAIN
WHO CAN HELP ME ?

Hi,
I have tried that option already. But I could not find any.
Any update????
Thanx,
Sivagami.R

Urgent - Business Object for Original Budget in Project Systems

Hi,
I am working on a workflow for original budget release in Project Systems.The transactions used are CJ30 (Original budget creation) CJ32( Budget release).
I have to send a workitem fo release the original budget for a user. But I am not able to find out any business object relevant to Budget.
Can any one helo me in this...????
Thanx,
Sivagami.R

Hi,
I have tried that option already. But I could not find any.
Any update????
Thanx,
Sivagami.R

Budgets in projects system

dear ps experts,
wud like to know in any report of S_ALR*
to know the budget updates in a project
1. first cj30 & cj32
2, later after some time cj36 & cj32
wud like to know which report shows that cj30 & cj32 history
and when cj36 & cj32 history.
because every update at cj30,cj32,cj36,cj37,cj34 there is document created in sap, how to view these details as &when required
thanx in advance
regards
srihari
ps : s_alr_87013560 is of now use for my requirement

Hi,
When you go into CJ3B, it asks you for the document number. Then press F4, this will take you to another screen. Here you have a facility of entering the WBS element. Enter the Top Level WBSE of the project for which you want to see the detail. Then it will show the list of documents generated for that project.
Hope this solves your issue.
regards
Pratap.V

Price problem while making budget PO for a Project

Dear Friends,
I wanted help from all you guys, this is related to budgetting in PS, the PS consultant prepares PR for a material wrt to a project , he has set a budget of say Rs 10000 to procure this material, now I use this PR to make a PO , & the net price of the PO is say 10000, it has a tax code carrying cenvat & say 4% CST, now the problem is when i try to save the PO , it gives me an error message saying that the budget has exceeded, that means though the net price is within the budget (Rs 10000), its also considering the tax part ,ideally it shouldnt have happened.
Kindly guide me how do I resolve this issue .
Regards,
DGN

Please check this link for maintaining budget for project:
/message/5616626#5616626 [original link is broken]
OR
if you are not allowed to change buget, you can tell your PS consultant to maintain the budget for this project according
to your requirement.
Edited by: Afshad Irani on Jun 4, 2010 3:35 PM

Missing Functionality -where do I set a budget for a Project?

Budgeting for Projects is non - existent
Budget for Profit and Loss for a particular project , How is it done ?
Does not work , No facility to put in Budget for a project ?
The report I am trying to run is:
REPORTS>FINANCIAL>BUDGET REPORTS>Profit and Loss Statement Budget Report.Then go to Expanded and choose a PROJECT, say MailOrder.
The result is that it will show the MailOrder project for the ACTUAL but it will show the whole company Turnover against the BUDGET column.
This is because there is no place to set a budget for MailOrder Project in the first place. So the question is where do I set a budget for a Project?
1 Budget setup screen - this has no facility to setup a budget for a PROJECT
2.Budget Profit and Loss - this has the facility to run a PROJECT budget but the figures for the Budget cannot be right because they were not setup in the first place.
PS MailOrder project is just an example.
Version: SAP BUSINESS ONE 2007 A Patch Level 41
Description of requirements: As above
(Valid as of: (Date that this legal requirement is applicable) N/A
Business needs: Customer cannot set the budget for a project and this effects their accounting.
Examples: (Please describe a typical example, how the functionality should work.)
Current Workaround: None.
Proposed solution: Create a Project and then be able to set a Budget for it
Edited by: Darpal Thiarha on May 14, 2008 10:34 AM

Hi Darpal/Kerstin
Please ignore my previous replies because I have now worked out why this idea will not work:
Kerstins' idea is based on setting up new Nominal Codes for every Project and for Every Nominal Code in the Profit and Loss structure. Apart from the fact that this will create a messy Nominal Structure with hundreds of Nominal Codes, the main issue here is the way the Cost Of Goods Sold is structured. The logic of our Nominal Structure for Sales and Cost of Goods is based on Item/Item Groups and the Nature of these Items. In our case we sell Skin Care products under 3 Brands. Say Brand A, B and C
So Brand A is summarised into one item Group and the ITEM GROUP is coded to Sales Nominal 20000 and the Cost of this group is coded to Nominal 30000. In Kertins suggestion, I would need to raise a Nominal Code 20001 for say Project Mail Order and 30001 for the Cost of Goods for Mail Order but this the Mail Order project is selling ALL our brands (A,B,C) - so you can see the problem here. You cannot use Nominal Codes for two different purposes and make it work. So the problem here is that my BRAND A summary will contain a Nominal with a Project Mail Order, that has SALES of Brand A,B,C. The Net effect will be that we will not be able to summarise anything in SALES and Cost of SALES in a logical way (Neither by Brand or By Project) and the Nominal Structure will be a mess.
My conclusion is that SAP b1 Sales and Cost of Goods section demands certain logic when building the Nominal Codes, and this is based on the NATURE OF THE STOCK ITEM and trying to superimpose the PROJECT issue into this, will never work. In my view, the PROJECT issue needs to be sorted without involving New Nominal codes and the starting point would be in sorting out the SALES and COST of SALES and the project Budget for this.
Please let me know if you need further illustration of the problem.

Project Budget Return Currency issues

HI,
my business has the following issue:
The Investment Management happens in Controlling Area currency (USD), while distribution of budgets to projects, spend & budget return happens in Local Currency (say EUR). So when project has a left-over of a budget that they want to return, they take EUR balance, convert it using budget rate of the day to USD equivivalent & make return. This creates an artifitial USD balance.
For example, 100 EUR were distributed to the project, 80 EUR spend, 20 EUR returned. EUR balnce is Zero, but USD will have some artificial balance arrised due to different rates applied on spend & return.
So I wonder what other companies normaly do with it? My business came up with a requirement of the following report:
Re: How to build Project Budget report with "IF-then" formula?
Many thanks in advance,
Daria

Hi Daria,
My recommendation is to align budget profile settings between IM and PS, means using the Object Currency for both.
I do believe you have one IM program per country, therefore the Object Currency is possible to be used.
Regards,
Paulo

Project Budget Checking in SAP MM Purchasing

Hi,
As far as i know, in FM we can control whether the posting or delivery date should be taken for budget check for PR/PO. In our company, setting configured as posting date so when budget error trigged, the system will display budget base on the posting date.
For WBS budget control (Project System), how we can control the budget checking during PR creation (ME51N), so that budget will refer to Posting Date and not by Delivery Date??.
Data simulation in screen Purchasing (ME51N)
Account Assignment = P
Delivery Date = 31/10/2010
Cost Center = MM051000
GL Account = 70080010
Network No = 80001776 0010
Error message at FUND Level :
Item 010 MM051000 /70080010 payment budget exceeded++
_Message no. BP629
_Diagnosis
_In document item 010 MM051000 /70080010, payment budget on MM051000 /BS020209 for fiscal year 2009 , Fund 0958 , was exceeded by 18,000.00 MYR.
Error message at WBS evel
Item 010 Ntwk actvty 80001776 0010 budget exhausted
Message no. BP608
Diagnosis
In document item 010 Ntwk actvty 80001776 0010, budget for WBS element P.000064.20 for fiscal year 2010 is exhausted.
Regards,
Azmiey

Under OPS9, below are the settings. Base on this setting, it's configured as "Annual budget released".
Profile               MI0001
Text                  MyCOmpany Budget Profile
Past                  4                  Program type budget   = ' '
Future               4
Start                 0
Decimal places = ' '                     Activation Type 1 Usage             0.00
Scaling factor       0                    Overall = ' ', Release = 'X', Object Currrency =' '
Exchange Rate Type   M
Value Date = ' '
Budgeting Currency : 'X' Controlling area currency
Tried untick "Release" to make it as annual budget also same error budget which still refer to year budget 2010. Any steps did i'm missing?

Project stock GR and GI occupy twice budget.

Hi Experts,
When the PO of project material Goods receipts, the statistical cost element of 90 category exists.
But when the PO Goods issue to project for consumption, the cost element is deleted.
Hence the project stock GR and GI occupy twice budget.
How can I reconstruct the statistical actual cost of project stock and project budget?
How can I solve this incontinuous data problem?
Thanks a lot.
Optional Backgroup INFO:
     At 2008/11/17, we created a statistical cost element (1605030000) for project material stock GL account whose category is 90. And at 2008/11/30, we deleted it because of financial departmentu2019s requirement.
    We find some project stocks who occupy project budget, and also some material purchase requisitions and material purchase orders who have commitments occupying project budget, are created during statistical cost element 1605030000 existing from 2008/11/17 to 2008/11/30.
    Now because statistical cost element 1605030000 doesnu2019t exist any more, when the project stock materials are issued to project for consumption, at the same time we got the material actual cost in the project, but the project stock still occupies the project budget which means the certain material occupies project budget twice in the form of project stock and project actual cost of material consumption. Could you do me a great favor to solve this inconsistent situation please?
    Further more, we want to delete all the commitments of the above material PRs and POs, and set free the budget which project stock occupies, could you help out? Is there any program to recalculate the commitment, the actual cost and the budget?
And if some day we want to add the statistical cost element (1605030000) for project material stock GL account back, how can we make all the material PRs and POs which are already in the SAP system occur commitment? How can we make all the project stock occupy project budget? Is there any program to recalculate the commitment, the actual cost and the budget?
Thanks a lot in advance.
Edited by: nan wang on Dec 27, 2008 6:37 AM

Hello,
Try to execute program RKANBU01 in SA38.
Regards
Prashant

Project & GL Budget

Is there any link between GL budget and project budget.

Hi
There are two features of integration between project budget and GL budget.
There are several setup steps to enable that integration, including configuration of WorkFlow that will generate the GL account code combination for the GL budget based on the project, budget and budget lines.
Bottom-Up integration allows you to enter budget for your various projects, then send those budget to GL to populate the GL budget. When you submit the project budget for approval the system is updating the GL budget.
Top-Down integration is based on creating the high level budget in GL. The system is keeping control of that budget usage. Each individual project budget is consuming part of the GL budget. When you enter a specific project budget and submit for approval the system is automatically calling the budgetary control function to verify there are still available funds.
There is a chapter about budgetary control and GL integration in Project Management User Guide.
Dina

GI to Project needs Budget?

My customer has following scenario.
1: There two types of projects with same budget profile(Avaibility control on Budget entry-1). Procurement is carried out on one types where budget are entered & PR/PO/GR restricted to the extent. Second type are Plant maintenace projects for handling repairs
2: They never budget second type of projects so AVAC is not activated for any of WBS( This is SAP behavior even if Availability control exist in budget profile). Good issue to Project is done for any material issued from free stock.Since AVAC is not active, they can issue any amount from free stock.
3: SAP Note is put in to fix above bug( Since there are first type of projects bypass budget) & CJBN (Recontruct availability) is run periodically. AVAC is active for second type of projects & they cannot issue any goods to Plant maint/Repair projects. They need to budget these projects as welll,but it is difficult to determine upfront repair cost upfront.
4: Suggest to have seperate budget profile(without Availability control) , but it seems it needs different project profile & hence not likely to be accptable.
5:Is there a way they can continue to issue goods to Projects without budgeting. Can we turn off message of 'Exceep budget' only form Good issue transaction
thank you for help here,
Jatin

Hi,
Not sure if this suggestion will work correctly for existing project. But give a try in testing server. And reply
5:Is there a way they can continue to issue goods to Projects without budgeting. Can we turn off message of 'Exceed budget' only form Good issue transaction
Option is to change your tolerance limit against concern budget profile. Here if you have selected ++(i.e. for all activities IN Act. column, then you have to delete this line item. And create new tolerance limits one by one against same budget profile for all activities except goods issue(Act 3).
After doing this RUN CJEN and CJBN is must.
Menu path: SPRO->Project System->Cost->Budget->Define tolerance limit
By doing this, the avac will work for all activities except Goods issue.
Regards
Shishir

Budgeting in projects

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