Internal Order Budget - Month wise

[Former Member]

Dear Experts,

We have a concern to upload Internal order wise budget for the monthly expenses for the controlling purpose. Can anyone tell me whether there is a standard code to enter month wise Internal order wise budget. Since we need to control the exceeds we need to allocate the budget to the respected GLs as well. KO22 & KPF6 Tcode can not fulfill the requirement.

Thank You

[former_member182098]

1. You should know the difference between plan and budget. Plan is for comparison with actual for variance analysis, whereas, budgets would work as threshold, provided, if you have activate the availability control.

2. You cannot achieve monthly budget control. This is NOT standard. I am sure even you CANNOT achieve this by doing any bespoke work.

3. Write a BDC or LSMW in order to load your budgets through excel. (as no integrated budgeting unlike integrated planning is available)

[Former Member]

Hi,

1. Planning won't impact on over budget postings. It will allow budget exceeds and then we have to run actual/planned variance reports to identify the exceeds. We need to control the postings as well.

2. Why monthly budget control is not standard. Internal orders can act as small projects and thus we can build expense controlling process easily, if we succeeded.

Thank You for the response.

[former_member182098]

What do you mean by activating internal order. I never heard such word in internal order accounting.

You need to use budgets not plan to control your over spending.

Hasini Wijesuriya
wrote:

2. Why monthly budget control is not standard.

You need to ask your second question to SAP.

[iklovski]

Monthly budget control is standard, but within the module, which is responsible for budget in SAP, i.e. PSM-FM I'm closing this issue, as the feedbacks received answer your questions: it's either non-standard development in CO or using standard functionalities of FM.

[Former Member]

@Abdullah Galal,

Hi,

We can not change the field status and mandatory the Order, since we have other expenses which don't have the internal order mapping. Anyway, I will try your suggestion as well.

Thanks a a lot.

Hasini

[Former Member]

Dear Hasini,

You can either copy a separate FS group for these expense accounts or create a validation rule

Regards,

A. Galal

[Former Member]

Hi,

No, we have more than 200 internal orders which are only active time to time and also for short period. Some times one internal order will be activated only for one month period and then again it will be activated after 3 months. Thus, our business process need to control the expenses related to those internal orders. Internal orders validation rules are different from each other. hus, we can not maintain one validation rule. We want to restrict the exceed postings.

Thanks for the response

[former_member219443]

Hi Hasini,

There is a no Monthly Internal Order budgeting facility in SAP, Budget is defined for a year. But if you need to control monthly expenses you can use the planning functionality. The idea is that each cost center owner has to control their OH cost monthly and through a report they can view their performances and then revise the plans for the next quarter/ month based on the actual
performance.Therefore generally we use monthly internal order planning functionality.

A budget can be set for the internal order annually.  But limiting the posting with the budget control
for all OH expenses would cause operational issues. But if there is a strong business need then with the help of an ABAP development you can be get it done.Second opinion is to create IO’s monthly which again a duplication of work.

The planning/budgeting is always against a particular GL account. There for you may use the opinion of GL and IO when setting the plans/budgets. Let me know if further clarifications are required.

GayaniP

[Former Member]

Hi Gayani,

Thank you so much for replying.

Internal order planning can not be perform for this scenario. We have a manual budget form in front-end and we want to link it to the SAP, internal order wise and control the postings to expense GLs. Usually that budget form is maintain for one month. Thus, we want to update the monthly budgets to the SAP through internal order wise. It is mandatory to control the payments. Thus, planning will not be effective. Limiting budget is the main target of this controlling process. So there will not be any operation issues. ABAP development will be great.

What about the Budget Work Bench, can't we use that. Can we link that to the Internal Orders.

If all the possibilities are not working creating new internal orders monthly is the option.

Again thanks a lot for the reply.

Hasini

[iklovski]

Neither creating monthly I/O nor ABAP development could be a good solution. If you really opt for flexible budget management, you should use PSM-FM module.

[Former Member]

Thanks for the reply.

No, We have to do something from FICO module.

[tamim_elmahmah]

Hello,

I am not sur it exists  a budget control by GL accounts (cost element) on Internal orders .

and KPF6 is for planning...

Please keep us posted

[Former Member]

Budget control is possible for internal order, but it for whole one year. We need monthly GL wise budgeting.

[iklovski]

Hi,

First of all, validate what kind of functionality you want: budget (KO22) or planning (KPF6). In budget module for I/O there is no possibility to introduce the figures by cost element: budget is inscribed entirely on cost object, i.e. internal order.

If it is planning that you are looking for, then you can either use distribution key for allocating the planning figures on periods, or use a planning layout, where you will introduce figures monthly.

Regards,

Eli

[Former Member]

Planing will not be sufficient for this scenario. We have to control the expenses.

[iklovski]

If you search SCN, you will see that there is a work-around, which was suggested several times to use the planning, but even this is done on annual basis. So, I have to repeat, in order to have proper solution, you have to implement PSM-FM.

[Former Member]

Is there any option to enter budgets monthly wise for certain elements. Are there any other thing which can be used instead of internal orders.

[iklovski]

No, only PSM-FM, if you want to stay in the reasonable boundaries of SAP standard. I don't say, that development is prohibited, but in this case it's quite extensive and not justified.

[former_member219443]

Hi,

I have responded to this query based on the practicality, I agree with you that there is a Standard SAP –Fund Management module to support this but there has to be a strong business case implement a new SAP module for a company. Anyways the ABAP solution is not an extensive program development; in fact we have implemented this solution to control the cost of Marketing & advertising expenses for several entities.

GayaniP

[Former Member]

Hi Gayani,

Yes, I can understand that getting another module just for the sake of one business process is not a good idea. We can go for the ABAP development. We will go for that.

Thanks again for the reply. I will let you the status and progress on that ASAP.

Thank You

Hasini

[iklovski]

I beg to disagree with you. Monthly-based control on internal orders with consideration to cost elements cannot be achieved by 'light' ABAP development. Of course, if you want your solution to be 100% accurate, i.e. able to deal with all possible financial flows.

PSM-FM, though, is not about 'getting another module': this module is in a basic ERP package.

[Former Member]

Hi,

We want to do this expense control using FICO & MM modules.

Thanks for the response.