Budget checking purchasing

can anyone advise about the budget checking in purchasing.. what are the business steps, and what is the standard (for assets and stockable materials)
should it be checked in the PR or in the PO? what is the business flow for each.
thank you

Hi,
When integarting with Funds Management normally Stock material, the is no budget checking because we always think that there are funds available.
Procurement of any items should serve as a commitment.
It makes business sense to have the budget check at time of Purchase Requisition not Purchase Order.
Edited by: Silas Ngcobo on Sep 26, 2011 9:48 AM

Similar Messages

Changes in Budget checking during creation of purchase requisition

Hi Experts,
My client wants changes the current Internal Order BUget checking. Currently Budget checking happens with availability control ie. 105% Suppose current budget is 8000. It will add 5% and Purchase reqn checks the fund available with 8400 less budget utlised, but client wants 8000 less budget utilised as they want to keep 5% aside for the unforseen cases.
Cilent does not want to change the current availability setting i.e 105%, retaining that availability check, client wants to check the availability excluding tolerance. What is the solution for this.
Appriciate your immediate response.
Thanks & regards
Veda Pandit

Hi,
I think you shall set 100 % limit for purchase order and purchase requisition and 105% for good receipt.
You can do so in customizing "Define Tolerance Limits for Availability Control" , using the activity group.
Paolo

Budget checking for Purchase Order

Hello All Experts,
Project Availability control: Tolerance limits
on All activity groups - warning message for 101%
on Purchase requisition - warning message for 101%
on Purchase Order - error message for 101%
1. Now we created a project with 5000 budget and Availability control activated.
2. We assigned material to activity and created Purchase requisition for 6000. Here system issued message there is error in commitment and allowed us to save the project.
3. We created Purchase order for 6000, system is allowing to create, that is any thing less then PR value, even though it is more than 101% and suppose to give the error.
How do we over come this situation and make the system to look Budget value not the PR Value.
Thanks,
Karthik

Hi,
you have maintained activity groups ++ so system is considering All activity groups first for budget check instead of individual activity groups(PR,PO...). remove the ++ activity group and maintain individually(PR,PO,GI...) and check.
regards

Budget check for purchase order

Hi everyone!
We have NO problems with budget check for the SC. But when we create a PO and exceeds the budget no message are displayed. The only thing that happens is that the PO gets status "error in process". But if we change the PO (still exceeding budget) we receive a correct message. Is this a program error?
Sincerely
Anders

Hi
Temporarily deactivate budget check: SRM: using Badi
BBP_BUDGET_CHECK, AVC Backend customizing.
Did you do budget check while creating sc? what did it says?
Refere this old notes.
Note 740933 - Incorrct purchasing budget for currencies w/o decimal
places
Note 747143 - User purchasing budget in pop-up incorrectly formatted
regards
Muthu
Edited by: Muthuraman Govindasamy on Nov 5, 2008 3:08 PM

Do not want Budget check & Commitment value for purchase Requisition

Hi Experts,
I hope you all are doing well.
My client's requirement is that at the time of Creation of Purchase Requisition there should be no budget check against WBS element and also Commitment value should not be for Purchase Requisition.
Please suggest.
Thanks & Regards

Hi Gokul,
Thanks for ur quick reply.
I have done changes in tolerence limit (activated it for PO only).
Now i created 1 Project PR of more than value of budget (system didnt check the Budget against WBS) but when i am trying to create PO with reference to same PR, system is giving error of budget. That is OK for me.
Now my requirement is to not take PR value as commitment in my reports, i want only PO value in Commitment column of repport.
I have read all 3 notes suggested by you. Can u tell me whcih one should i implement to stop PR value as commitment in reports.
Thanks & Regards

Budget check at the purchase requisition stage

Hello dear experts,
I wish to make a credit (budget) check at the purchase requisition stage .
The purpose is to get indication (even a warning message) about the budget availability before the user creates a purchase order.
Any ideas about a way to accomplish the above?
Thank you for your help
bilya
Moderator: Please, search before posting

hi
either you can use internal order scenario or Project System (PS) with WBS element
allocate budget for order or Project and in customization maintain the budget profile and tolernace limit check

Budget checking in Purchase Reqisition item level

Dear Expert,
I have not activated fund management yet. In my project following is the requirement.
Budget checking in Purchase Reqisition item level
Without activating Fund Management, can I make any configuration to solve my problem.
Regards,
David

Hi,
As Alexey mentioned, it's possible also without FM. You have to activate commitment management and control the budgetthis with CO budget module. Of course, PSM-FM would be more generic solution.
Regards,
Eli

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?

Why budget check does not work with account assigment distrib. by quantity?

Hi Gurus,
I have an issue in the budget check for Purchase Order (PO).
I'm using the FM B31I_ACC_PURCHASE_ORDER_CHECK.
The case is next:
1 Item with 21 account assignment type AS and distribution by quantity:
ASSET_NO QUANTITY
1           1
2           1
3           1
4           1
5           1
6           1
7           1
8           1
9           1
10          1
11          1
12          1
13          1
14          1
15          1
16          1
17          1
18          1
19          1
20          1
21          1
All account assignment are for the same G/L account, fund, functional area...
The price for each item is $2,499.14, then total price is $52,481.94 (2,499.14 * 21).
I debugged the FM B31I_ACC_PURCHASE_ORDER_CHECK and found that in FM BBP_PD_COMMITMENT_FILL_BAPI it's making a rounding with percentage:
The system assume next:
Each item is 4.76% of total (result of divide 100% / 21 = 4.76190476...) but the percentage is rounded to 2 decimals.
Then it makes the conversion by the amount corresponding to each item:
($52,481.94 * 4.76) / 100 = $2,498.1403
Finally the budget is checked by $52,460.95 (2498.1403 * 21).
But available budget is $52,481.90, the check pass, but really there are 4 cents missing (total price is $52,481.94).
Can somebody say to me if this is a standard behavior?
It can be fixed with configuration?
The problem is for multiple account assignment with distribution by quantity and:
(100 / quantity) = not integer (or have more than 2 decimals)
For example: with quantity 20 it works because 100% / 20 = 5.00%, then the budget is check exactly.

1503317 - System Behavior for Account Distribution between SRM and R/3 system
When using distribution by Value in a SRM document this value is not correct and a rounding occurs once this document is transferred to ERP system.
Cause
It is not possible transfer documents to the back end system with distribution by value, due to a back end restriction.
Resolution
The following information is the system behavior in R/3 / ERP:
in R/3, there is accounting distribution only by quantity or percentage. So when distribution by value is used, a rounding will always take place.
in R/3, the use of value based distribution in SRM will lead to rounding differences.
Distribution by quantity is allowed in SRM and MM side. However MM do not accept is distribution by value. This is internally converted to distribution percentage based.
Keywords
Distribution by Quantity, Distribution by Percentage, Distribution by Value

Budget check for PO based on delivery

Hi,
Can some guide how to configure budget check for purchase order based on supply schedule.
This could be that you have raised a Purchase order for 12 Quantity and the delivery of the same is at 1 per month for 12 months.Budget should be checked for one quantity for one month and not based on Purchase order which is for 12 quantity.
We are using Former budgeting.
Regards,
Gokul

Hi,
I'm afraid you will have to create 12 items within the same PO and assign different delivery date to every one of them; then, the budget will be affected accordingly.
Regards,
Eli

Budget checking document type wise

Dear sapient
I have mapped fund management as per the business scenario but i need some solution for the following point.
Can budget checking mapped as per the PR docuemnt type . i checked in derivatio rule but docment type is available as per the fi document type.
Client requirement is as below -:
if material value is below rupees 100000 client is preparing separate document type if it is more than rupees 100000 then preparing different document type
regards
soraj

HI all
Extremely sory what i explained above is ok along with i want to add some more point.
Scenario 1 -:
same type of material is being purchased, but as per budget point of view they have dived in to two way
-> if material quantity/value is more than 100000 rupees than it is seperate budget.
-> If material quantity/value is less than 100000 rupees than its budget is different.
same material but budget differes as per the value.
scenario 2 -;
If material is below 10000 rupees but in this case purchase order document type is different.
with the help of ABAP i got some solution i will prepare a table and i will maintain diferent commitment item as per the purchase order type, i also checked it is working fine.
Scenario 3 -:
My clients wants budget check will be available at quation level.
regards

Earmarked funds budget check in SRM

Hello to all SRM experts,
I've added two customer fields (earmarked funds and earmarked funds item) in the account assignment according to note 672960 using the INCL_EEW_PD_ACC_CSF structure.
Now we need to add those fields to the standard account assignment check performed by the system.
We are using ECC 6.0 for our B/E system and SRM 5.0 deploying the extended classic scenario.
What the client expects is for a budget check against the earmarked fund along side with the FM budget check.
Any ideas how to add those to customer fields to the standard account check?
Raz
Message was edited by:
Raz Golan

Hi
Please go through this ->
You need to code the SRM Budget checks logic part by your logic and implement the same on the Customer fields using BADIs.
Use BBP_DOC_CHANGE_BADI (For changing Buget values) and
BBP_DOC_CHECK_BADI (For issing Customer messages to Shopping cart web page)
Budget availabiltiy check will take place in R/3. This check has to be set in R/3 as there is no specific FI settings in SRM for availability check.
This is customized in SRM when defining your backend system:
SPRO Path ->
Supplier Relationship Management -> SRM Server -> Technical Basic Settings -> Define Backend Systems
Manage column FI valid with "Real-time backend validation".
Function module - BBP_BUDGET_CHECK (The database table BBP_USRBDGT contains the value for the purchasing budget in the column AmountSpent.)
Are the below ones used while checking...?
PO create/change
FM - B31I_ACC_PURCHASE_ORDER_CHECK
SC create/change
FM- B31I_ACC_PURCHASE_REQUI_CHECK
FM - B31I_ACC_PURCHASE_ORDER_CHECK
For SRM standard Budget checks, please go through the relatd links ->
OSS Note 520717
Re: FM for budget check in ECS ?
Budget availability check
Purchasing-Budget Workflow
http://help.sap.com/saphelp_srm40/helpdata/en/4e/1d74eff196d64e880fd28d41d4502b/frameset.htm
Costcenter wise budget
Re: Cost Center wise Budget
Hope this will help.
Do let me know.
Regards
- Atul

Budget Checks in Classic for PO

Hi everyone,
We have a doubt with the budget checks in classic scenario and we need your help. We know when we create a SC, SRM verifies the budget in the ERP as a simulation. If there is not budget the system sends a error, but what happend with the PO?
For example:
Case 1: We create a SC. The SC is sent to SoCo. In SoCo, the strategic purchaser creates a bid invitation. A bidder wins the process and we whant to create a PO. When the budget is verified? The budget is checked before the PO is created in ECC or when? If there is not budget, the PO would not be created in ECC??
Case 2: We create a SC. The SC is sent to SoCo. In SoCo, the strategic purchaser assigns a contract then, he wants to create a PO. When the budget is verified? The budget is checked before the PO is created in ECC or when? If there is not budget, the PO would not be created in ECC??
We are working in SRM 7 with ECC 6 EhP 4.
BR
Ivá

Hi,
In classic deployment, commitment of budget only happens when the PR or PO follow-on documents are created in the ERP system. SRM SC has no capability to lock commitment in the ERP when the SC is released.
If you are looking at the commitment locking in the ERP when SC is released, you may like to look at the SRM PPS which has this capability in the extended classic deployment.
Regards.
YS

Budget check for a Training Event

Hi,
My client has departmentwise budgets for Training. They want a budget check when the Training Event is being creating in SAP. If the training costs exceed the remaining training budget of the department, the system should not allow it. How to achieve this?
Please help.
Regards,
Sasi.

Hi
Temporarily deactivate budget check: SRM: using Badi
BBP_BUDGET_CHECK, AVC Backend customizing.
Did you do budget check while creating sc? what did it says?
Refere this old notes.
Note 740933 - Incorrct purchasing budget for currencies w/o decimal
places
Note 747143 - User purchasing budget in pop-up incorrectly formatted
regards
Muthu
Edited by: Muthuraman Govindasamy on Nov 5, 2008 3:08 PM

Budget check at service entry sheet release in funds management

Dear Forum,
We implemented the funds management recently we have the requirement like below
Generally in FM at the time of service Purchase order creation system will consume the budget and at the time of service entry sheet release the consumed budget in the purchase order level will adjust. Now the business requirement is that they don’t want to check the budget at service purchase order level but they want budget check at service entry sheet level.
This is the case only for service PO’s.
If anyone have same scenario please share your views.
Regards,
Ravi.

Maybe you can try having the account assignment 'U' in the service PO which will then allow you only to enter the account assignment only in the service entry sheet for budget checking.

Budget checking purchasing

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