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Budget Management

former_member220526
Active Participant
0 Kudos

Hi,

I've been researching on budget management for quit some time now but couldn't fine any solution for my scenario so i am posting this query hopping to find a possible solution. i have following scenario at hand:

Budget should be consumed when actual payment is made to vendor and not at the time of invoicing. with the help or some experts on this forum i came to know that this can be handled through online payment transfer function in SAP. i did tried it out but the problem is that it does not assume the amount of payment as consumed budget but it actually consumed the budget as whole at the time of invoice with invoiced amount. what my client want is that the amount of payment made should be the actual budget consumption and not the amount of invoice. let me explain the scenario with an example. i have a budget of 15,000 against commitment item "XYZ" Let say that i posted a vendor invoice with reference to this commitment item in system for 10,000, at this time budget is being consumed with full 10,000 but this invoice is not going to be paid in full. lets say i made the first payment of 1,000 against this invoice. this 1,000 payment is the actual budget consumption for my client. and client would like to see the budget report as bellow:


When Invoice is Posted in System

Original Consumable Budget  15,000

Commitment                         10,000

Budget Available                     5,000

When Payment is being made

Original Consumable Budget    15,000

Commitment                           19,000    

Consumed                                1,000

Available Budget                      14,000 (Original - Consumed)

Can this be achieved in SAP Funds management? or is there any other area which covers this?

1 ACCEPTED SOLUTION

iklovski
Active Contributor
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Hi,

You cannot skip the invoice and good receipt from budget consumption cycle; one of those must be registered in the loop. If you use payment transfer functionality, then it should be necessarily an invoice (with or without GR).

Regards,


Eli

View solution in original post

8 REPLIES 8

iklovski
Active Contributor
0 Kudos

Hi,

You cannot skip the invoice and good receipt from budget consumption cycle; one of those must be registered in the loop. If you use payment transfer functionality, then it should be necessarily an invoice (with or without GR).

Regards,


Eli

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Hi Eli,

so does this means that this scenario can not be handled in Funds management either we'll have to redesign out business process or we'll have to look for other option in SAP? is there any other area of SAP that can cover this process as per requirement?

Regards,

iklovski
Active Contributor
0 Kudos

I'm not sure why it is relevant for you to exclude invoice from budgetary cycle. You can control your final budget consumption on payment level if you want, but invoice will play its part. Exactly as PO/PR do, when the budget is equally consumed (committed).

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The reason why this is relevant in our scenario is because we book invoices to vendor with complete amount but the payment is being made to vendor in parts.. this is a standard practice. let say i purchased a Server for 200,000. The total budget for IT equipment is 200,0000 as well.. if the budget is consumed at invoice i wont be able to do any other purchase. but i do know that i have a contract with my vendor that i'll be paying him 20,000 per month. so my actual budget consumption would be 20,000 when i made the first payment. this will leave me with 180,000 budget for IT Equipment which can be further used for purchases. 

Regards,

iklovski
Active Contributor
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This is not accurate. In your example, you are not supposed to do any other purchase, because at the end, you will have to pay all 200K, even if you pay by tranches of 20K. Imagine, you have a budget of 200K, as you said. You had one contract for 200K, out of which you paid only 20K. What you are saying is that you want to consume now another 180K. But, in this case, overall consumption is 200K+180K = 380K, which you will have to pay sooner or later, considering the fact that you already have had your invoice. So, how do you suppose to do it if your budget is only 200K?

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clients budget is updated on sale basis. this means that every month their budget gets updated based on their sales.. in this case they will always have the amount they need to pay for their contracts. i know that this is a non realistic requirement by the client but we are just looking for a solution in sap for this.. so far i am unable to find one.. the logic presented by you  is completely true and realistic in case of funds management and budget consumption i totally agree with that.

Regards,

iklovski
Active Contributor
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Why, it is realistic, but it's called management of budget in two layers: commitment and consumption. Your commitment budget should be 200K and payment budget 20K. But, you will have to work with payment requests for this, i.e. your payment budget will be consumed by payment request and the payment will be initiated from it (i.e. you will use F111 for payment run, instead of F110).

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This was in my mind that it might be possible by maintaining two  budget types commitment and payment. but i am not clear about how this will work in SAP. if i maintain two separate budgets for commitments and payments how will the payment budget get consumed at the time of payment? i wont be able to make payments through F-53? How will derivation rules work in this case and how will system link payment budget with commitment budget? will i have to execute payment transfer in this case too? please guide m through the basic process please. it would be of great help .

Regards,