Budgeting on WBS in Project System

Question

Hello every body,
Can u tell me, the procedure of the budget implemented in the WBS?
I am use the CJ30 t-code. Suppose the budget is exceeded at that time, I am change the overall budget. Still, when I am going to change the yearly budget it shows the error and it could not do the contract requisition. I think I may wrong.
What is its procedure?
How to transfer the budget one year to another year with step-by-step procedure?
How to settlement the project with step-by-step procedure?

Answer 1

Hi Asutosh,
The budget is the approved cost limit for a project.It differs from project cost planning due to its binding nature. Whereas the project costs need to be estimated as accurately as possible during the planning phase, the funds are predetermined as a budget in the approval phase. The budget is the limit set by management for project costs over a certain period of time.
Through transaction CJ30, you can change original Budget.But once approved by Management,you can not change it in CJ30 as and when your requirement gets changed.
Let us say initially you have got budget of Rs.1,50,000/- from Management for one WBS,then this amount will appear for particular WBS in CJ30. You can raise contract requisition against this WBS till max limit Rs.1,50,000/- only.
Suppose your contract value is going to exceed Rs.1,50,000/- , you can not  go and change amount for WBS in transaction CJ30.It is not allowed.You have to give justification for exceeding amount for this contract. Then management can approve you additional amount in the form of supplementary budget.
Similarly if you have got budget of Rs.1,50,000 and you are going to spend only Rs.1,25,000 in this year, then balance can be carried forward for next year.Same can be informed to Managment as well.
For transferring budget from one year to another year use transaction CJ34.
There is one more concept called Availability control.With this you can set up a tolerance limit.Let us say for your budgetted amount, you have put up tolerance limit of 90%, then you are allowed to raise contract requisition against WBS till 90% of total budgetted amount.If contract amount is going to exceed this limit, then system will give an error with the message "Budget not available".Then you have to get supplementary budget to fulfill this crietria.
Please refer the link below to know more about the procedure of Budget implementation
http://help.sap.com/saphelp_46c/helpdata/en/86/98853478616434e10000009b38f83b/frameset.htm- Go to topic Budget Management.
For Settlement of the project, you should define settlement rule for WBS element.Settlement rule will contain Distribution rule in the form of category,settlement receiver,perecentage allocation,amount.
Hope this will be helpful.
Regards
Tushar