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HI Team,

Several time we will have budget issues in project system.  I am giving some examples how the Project System availability control behaves & its consequences.

Note :  In this case I am taking example of direct FI Posting to the WBS Elements

Step 1 ) Creation of 4 WBS elements for Testing

PS Bud1.jpg

Step 2) Assigning & releasing budget for the specific Budget H-0021-4

Here I enter Rs.1000/- as a Budget & released Rs.800/- only. The same you can get it in the PS Budget Report CJ32

Note the Budget is allocated only in the higher WBS Element i.e., H-021 only

PS Bud2.jpg

Step 3 ) Booking the expenses using FB50 for the 4th level WBS element H-0021-04, even though the budget allocated at Higher WBS Element.  Here system will allow to post expenses or not..? let see..!

PS Bud3.jpg

Its saving with out giving any error message & it consider the Budget from the top level WBS Element.  isn’t it..?

Step 4 ) Check the Budget Report :

You can observe in the 4th line item, availability as 100 -ve value & the actual and assigned value as 100/-. It is because we have done some postings to the 4th level WBS Element.

In the top level WBS Element,  Current budget is 1000/-,  Released is 800/-,  Actual cost is 100/- (This is 4th Level WBS Element Actual amount), Finally it is showing that Available Budget as 900.

PS Bud4.jpg

Step 5) Now, I  distributed budget amount 200/- to the 4th level WBS Element

Here it shows that available or remaining 200/- at 4th WBS  Element.  If you are trying to post 100 then, will the system allow you to post ..?  Lets see…! A document has posted with 100/- INR.  Now the Available balance is 100/- INR.

PS Bud5.jpg

Step 6)  If the Available balance is 100/- INR, then trying to post 250/- to the 4th level WBS.  As per the standard report it should allow up to 200 since its showing for 200/-, but here the life has changed to error message…!

As expected system should through an error message stating that “150/- Budget exceed.   (Since Available Balance = 100 & Posted amount 250 = -150)

PS Bud7.jpg

its giving the error message for 150/- even through 200/- available in the specific WBS Element budget.

Reason :  System behavior is, after distribution to the 4th WBS system will consider 100/- already consumed with -ve value.  After assigning that it will consume the first & remain value would be 100/- & the invoicing amount would 250/- that is the reason, error triggered for 150.

But the budget report it shows availability for 200/-.  max time business have a confusing since it showing in budget available, even though system will not allow you to process further due to the above error.

Regards

Raj

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27 Comments

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  1. Mohamed Rafi

    1) I Would have appreciated if you had checked for any spelling, typo and grammatical error before publishing this document. I read first few sentences thought I would correct myself but it went on and seemed like I rewrite the whole document. Next time onwards please check for those error before publishing it.

    2) There is no confusion as you have stated in your document, system works perfectly, you are trying to convey in your document that when you allocate the budget to 4th level WBSE, the previously posted value are not showing in the 4th level but still it shows in top level. I simulated your case, once I allocated budget to lower level WBS element, system automatically moves the assigned value from the top level to the 4th level WBS element.

    So, I would suggest you to search for any OSS notes to correct your system issue. Also, I suggest other forum members to simulate this case in your system come back with the findings.

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      1. Deepak Pitale

        Hello Raja,

        It is really good document to learn budgeting scenario, I have one question if anyone can answer….

        I have Leve1, Level 2 and many Level 3 WBS elements….Can I just do budgeting for level 2 WBS element and availibity control is ristricted to that level only? I do business transactions at lower level WBS element but availibity check will be done at 2nd level only…?

        Deepak Pitale

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        1. raja sekhar Post author

          HI Deepak,

          Thanks for your appreciation.  Long back i have been moved form PS to FICO, so now its again new task for me to recollect all the information.  Moreover you please check the notes : 166394, it has a beautiful concept of availability check at budget. 

          Lets see others replies..!

          Regards

          Raj

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      1. Shanthi R

        Hello Raj,

        I have some Budget Display Issue.

        I have assigned Budget for WBS level 1: 1000

        I have returned Budget : 800

        But in the report of Cj30:

        Its showing like below

        Original Budget : 1000 Current Budget : 200

        But in the standard report its showing like over all budget : 200 instead of 1000.

        I have observed in your above screen shot of S_ALR_87013558

        It showing original budget, current budget and assigned

        If i want to see the report in that way. what i need to configure

        Can you please guide me.

        Thanks in advance.

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        1. raja sekhar Post author

          Hello Shanti,

          Pleaes find the below way to get the line item report the way you want.

          /wp-content/uploads/2014/02/cji3_379536.jpg

          CJI3 -2.jpg

          Select the Budget line items line item, I hope you ll get the required report…!

          Regards

          Raj

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              1. Shanthi R

                Hello Raj,

                Am able to see Budget Actual Committement and Remord plan , Assigned and Available.

                But not able to see Original Budget , but am seeing in your screen shot that as you shared in your thread.

                Can you please let me know how can i see Original Budget as well in the report

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              2. Shanthi R

                Hello Raj,

                Am not able to see Budget release, Original budget and all in the report,  want to see over all values like Original budget, Current Budegt, Budget release, PR committement, PO committement, Assigned Available like in your screen shot.

                For getting the above mentioned fields, what i need to change in the report.

                For me its showing fSix fields: Budget, Actual, committement, Remord Plan, Assigned and Available

                Please guide me, it would be very grateful to you.

                Thanks & Regards,

                Santha

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                1. raja sekhar Post author

                  HI Santha,

                  That was a  developed report.  The same report S_ALR_87013558 has been modified to get the data & made as per as user requirement.


                  Regards

                  Raj

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                  1. Shanthi R

                    Hello Raj,

                    We have the same requirement, can you please let me know how you have developed in the report S_ALR_87013558 above all mentioned fields.

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  2. Sergio Guidi

    Hello Raj,

    One important thing in order to understand budgeting in PS (and, as a mather of fact, any other controlling object that may bear active availability control, such as PM order and an internal CO order) is the difference between passive and active budget availability control.

    • The Passive Availability Control is carried out through the display of the typical controlling hierarchy reports (e.g. “Budget/Actual/Commitment/Remaining Order Plan/Assigned,” transaction code S_ALR_87013558). These reports show an overview of the assigned funds against (released) budget; for each WBS element of the project structure (no matter it has ever received budget values or budget release values), the system compares the current (released) budget v. the assigned funds.
      The assigned values in the passive availability control are calculated from: (1) actual costs posted to a WBS element or subordinate WBS elements, network activities, and/or assigned orders (PM, PP); (2) Statistical actual costs posted to a WBS elements or subordinate WBS elements, network activities, and/or assigned orders; (3) Commitments posted to a WBS element or subordinate WBS elements, network activities, and/or assigned orders; (4) Remaining order plan (i.e., if a positive value is the result of subtracting the actual costs and commitments to the planned costs, insofar all of them are posted to network activities, and/or assigned orders) of the WBS element and subordinate WBS elements.
      In the passive control, the assigned funds are shown in a summarized form in the project’s hierarchy.
    • The Active Availability Control, when allowed and set for the project, determines what is the current budget availability situation of the Controlling element (more about this later) against the funds that are trying to be assigned to the project through a certain business transaction. Based on that situation and on what have you established in the customizing settings for availability control and tolerance limits, you can prevent the assignment of too many funds and or simply issue warning messages. For projects, you can also use releases as an alternative to the current budget (this is the only difference in functionality when using availability control in internal CO orders and PM orders). So, only for each WBS element of the project structure that has once received budget values (or for which budget values were released), i.e., for each Controlling element, the system compares the current (released) budget v. the assigned funds. So the first difference with the passive control is that the control is carried out only in WBS elements that once received budget (released) values. If a WBS element has distributed all its (released) budget to a subordinate WBS element, it is still considered a Controlling element. (Of course, the available budget would be, in this case, 0).
      Then, the assigned values in the active availability control are calculated differently: (1) 
      Actual costs of WBS element carrying budget; (2) Statistical actual costs of WBS element carrying budget; (3) Actual costs of subordinate WBS elements if these do not carry budget; (4) Statistical actual costs of subordinate WBS elements if these do not carry budget; (5) Commitments of WBS element carrying budget; (6) Commitments of subordinate WBS elements if these do not carry budget; (7) Remaining order plan (maximum of plan and actual costs + commitments from assigned networks or orders); (8) Debit from settlement to WBS element; (9) Credit from settlement to budget-controlled object (internal order, WBS element).
      On the other hand, there are not part of the assigned values: (1) A
      ctual costs with a cost element defined in Customizing for availability control as an exempt cost element; (2) Actual costs that resulted from a business transaction that does not belong to the valid business transaction groups of availability control (also, this can be managed through the customizing settings for the tolerance limits); (3) Credits from settlement to an object that is not budget-controlled (for example, cost center); (4) Revenues posted to the project.
      Given that the active availability control is carried out in a different way, the controlling hierarchy reports (such as S_ALR_87013558) would not help you to monitor the availability control for a project. The “Availability Control Analysis” report (available in the Detail menu path in transactions CJ31 and/or CJ33) and (if available in your release) the “Monitor Availability Control for WBS Elements” report (transaction IM_AVCHANA_WBS) would the appropriate tools for this.

    In the “Availability Control Analysis” report (embedded in transactions CJ31 and CJ33) you would see which are the Controlling elements in your project (WBS elements in blue color) and, also, which assigned values do not contribute to the assigned funds (lines in red color):

    CJ33.jpg

    When the active availability control is activated for your project (i.e., through automatic activation with budget allocation, with background activation or with online activation carried out with transaction CJBV), the system: (1) Determines WBS element carrying budget (i.e., determines the “Controlling elements”); (2) Determines the associated assigned funds. It checks the assigned funds against the controlling element budget values. These assigned funds can be on the budget-carrying WBS element, the subordinate WBS elements and their assigned orders. After the activation, each posting to the project is checked by the availability control, according with the tolerance limits defined for the budget profile.

    Raj, try running transaction CJ31 or CJ33 and, through the Details menu path, go to the “Availability Control Analysis” report. Please, verify whether WBS element H-0021-4 is marked as a Controlling element (blue if it is, white if it is not). If it is a Controlling element (i.e., it’s blue), then see the amount of the available budget. If it is not a Controlling element, search in the hierarchy and locate which is the immediate Controlling element for that WBS element; then check what is the available budget for the Controlling element. The actual posting that you are trying to generate would be, in terms of availability control, checked against one of them. See if you have available budget for such posting.


    Finally, it is important to understand whether your project checks the availability control against overall/annual values and against budget or budget release values (these are the customizing settings in your budget profile).

    If you are using release budget values, make sure that those 200 INR distributed to WBS element H-0021-4 are also released through transaction CJ32.


    Best regards,


    Sergio.

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    1. Palakodeti Prasad

      Currently we are covering more than one fiscal year. So the budget will be distributed annually. So in the current configuration, for the year 2015, I will need to update the budget for FY 2016 as well, so that the budgets can be allocated.  Is there any other option to update the budgets for FY16, without assigning any values, as the budget for 2016 will not be available at the start of the Year.


      Please can you share the document, where the proposed steps and sequence is required to be carried out for the Year end carryforward.  We can test the same along with the Budget checks in our programs. Also we will be able to understand the changes if any required in the way we design the transaction.


      Thank you

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    2. Paulo Vitoriano

      Great comment by Sergio, better than original article IMHO.  Even that Raj took a great effort it gives rather simplistic overview for beginners, while your post goes deeper.

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