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Purpose

In this Document we will capture GL Planning/ Budgeting Process, Scenarios and requirement of an Organization.

This component is used to handle GL accounting transactions that you can Prepare Future forecast, Allocation in a Particular Department.

You can use the planning function in General Ledger accounting to enter and distribute plan data to create budgets, forecasts, and other reports.

You can quickly and easily enter large amounts of plan data. You have the following options for plan data entry:

  1. You can enter amounts as plan totals that are (automatically or manually) distributed to the planning periods.
  2. You can enter amounts as period amounts that are automatically totaled.
  3. You can enter a combination of both totals and period amounts.

Features

Planning in General Ledger Accounting comprises the following functions:

  1. You can perform planning locally. When setting up planning, you provide a framework for the individual planners and assign authorizations. You can also adapt the entry screen layout.
  2. For balance sheet accounts, you can choose between planning balance sheet change values or balance sheet values.
  3. For each fiscal year, you can post plan data to multiple versions.
  4. You can compare actual and plan data
  5. You can display totals records of your plan data.
  6. You can display individual plan documents.
  7. You can use allocations to allocate/distribute plan data

Planning

Planning is generally part of controlling. However, we can plan for the general ledger accounts in finance module of sap. This can be done to prepare the variance analysis within financial accounting.

Cost Center Planning

The planning application “cost center planning” enables the planning of the necessary budget of cost centers in the organizational structure of your company. You identify and value the relevant cost drivers, define manually entered prices (also called “political prices”) for the internal activity allocation and enter primary and secondary costs.

Cost center planning involves entering plan figures for costs, activities, prices or statistical key figures for a particular cost center and a particular planning period. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. These variances (see: Variance Calculation) serve as a signal to make the necessary changes to your business processes.

Cost center planning forms part of the overall business planning process, and is a prerequisite for standard costing. The main characteristic of standard costing is that values and quantities are planned for specified time frames, independently of the actual values from previous periods.

Prerequisites

You have to activate the delivered planning application. For more information

Process Flow

The general process flow of cost center planning covers the following steps:

  • Preparation: Planning cost drivers for externally related activities and the manually entered prices for internal activity allocation
  • Planning of primary costs
  • Planning of secondary costs
  • Analysis of results in the SAP Business Information Warehouse
  • Optional: Returning the plan data into the operational Cost Center Accounting of the R/3 System

Profit center Planning

Profit center planning forms is a part of corporate planning. For this reason, planning integration and reconciliation are particularly important.

Planning is a combination of top-down/bottom-up planning on several aggregation levels. The different roles of the persons involved in the planning process are reproduced with the help of various Planning Profiles, which enable a role-specific view of the existing planning objects.

Process Flow

Process1.jpg

Process Flow

The persons responsible for planning for their respective company call up their planning folder and plan revenue cost of sales, working capital, investments, and depreciation corresponding to the sequence suggested in the planning folder.

Process2.jpg

Master Data

The following profit center master data is maintained in the central master data maintenance system and distributed from there to the local systems:

  1. Profit centers
  2. Profit center groups
  3. Account groups

Planning Program Update

Description:

Planning tables Update

Transaction Code:

GLPLINSTALL

Menu Path:

Client dependent settings:

Yes / No

Process3.jpg

Cost Center Planning

Define versions

Description:

Define versions

Transaction Code:

SPRO

Menu Path:

  1. IMG –> Enterprise Structure –> Controlling –>Cost Center Accounting–>Planning–>Basic Settings for Planning–>Define versions

Client dependent settings:

Yes / No

Process4.jpg

Process5.jpg

Maintain fiscal Year -Select Version “0” and double Click on Settings for Each Fiscal Year .

Process6.jpg

Define Defined Planner Profiles

You use planner profiles to control the way planning is carried out. In a planner profile, you specify per planning area which planning layout is to be used with which default values. Per planning area, you can create as many planning layouts as you require. The profile item determines the order of the planning layouts within a planning area and can be used to assign the same planning layout to a planner profile in multiple areas, but with a different default setting each time.

Description:

Define Planner Profile

Transaction Code:

GLPLADM

Menu Path:

  1. IMG –> Enterprise Structure –> Financial Accounting (New) –> General Ledger Accounting (New)–>Planning–>Define Planner Profile

Client dependent settings:

Yes / No

Process7.jpg

Define Plan Versions

In this activity you can maintain plan versions for each ledger. For each fiscal year, you can post plan data to an unlimited number of versions.

Description:

Define Plan version

Transaction Code:

GLPV

Menu Path:

  1. IMG –> Enterprise Structure –>Financial Accounting (New) –> General Ledger Accounting (New)–>PlanningàPlan Versions–>Define Plan Versions

Client dependent settings:

Yes / No

Process8.jpg

Assign Fiscal Year to Version

In this activity, you can specify fiscal-year-dependent parameters for the plan versions of your ledgers. In so doing, you assign the desired fiscal year and posting period to your plan versions and activate them. You can also lock a plan version.

Description:

Define Plan version

Transaction Code:

GLPV

Menu Path:

  1. IMG –> Enterprise Structure –> Financial Accounting (New) –> General Ledger Accounting (New)–>Planning–>Plan Versions–>Fiscal-Year-Dependent Version Parameters

Client dependent settings:

Yes / No

Process9.jpg

Define Plan Period

In this activity you can determine the posting periods allowed for entering planning data. You can create permitted posting periods in the form of variants, which can then be assigned to company codes.


Description:

Define Plan version

Transaction Code:

GCP5

Menu Path:

  1. IMG –> Enterprise Structure –> Financial Accounting (New) –> General Ledger Accounting (New)–>Planning–>Define Plan Periods

Client dependent settings:

Yes / No

Process10.jpg

Define Number Ranges for Plan Documents

In this IMG activity, you define the number range for your planning documents in General Ledger Accounting. You specify the following number range details for each company code:

  • A number interval from which the document numbers are to be chosen
  • The type of number assignment (internal or external)

Process11.jpg

Activate Line Items for Planning

In this activity you determine in the planning if summaries as well as plan line items are to be written.

Description:

Define Plan version

Transaction Code:

GLPV

Menu Path:

  1. IMG –> Enterprise Structure –> Financial Accounting (New) –> General Ledger Accounting (New)>Planning–>Plan Versions–>Activate Line Items for Planning

Client dependent settings:

Yes / No

Process12.jpg

And execute to update

User-Defined Planning Layouts

To be able to plan for cost elements, you first need to define the planning layout. In the planning layout, you specify the format of the planning screens.

Description:

User-Defined Planning Layouts

Transaction Code:

SPRO

Menu Path:

  1. IMG –> Enterprise Structure –> Controlling –> Cost Center Accounting–>Planning–>Manual Planning–>User-Defined Planning Layouts–>Create Planning Layouts for Cost Element Planning

Client dependent settings:

Yes / No

Planning data


Transaction GP12N

Process13.jpg

Display Plan Data F.01

Here Plan Version “0” used for display Plan data

Process14.jpg

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36 Comments

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  1. Osvaldo Lopez

    Great documment! More than 300 views and no-one tell nothing!

     

    Well, I did!

    Excellent post.

    Please if u have more information about “cash flow”, tell me.

     

    Regards,

    Oswald

    (0) 
      1. Lokesh Thimmappa

        Dear Raheem,

         

        Very useful document, it can be road map for activating planning.

         

        Could you please let me know if there is a way to copy actual Blance sheet data to any version. Also I would like to know if we can transfer plan data of CO (KP06 & 7KE1) to Balance sheet.

         

        Thanks,

        Lokesh

        (0) 
  2. Hai Tran

    Hi,

     

    Can you tell what is purpose of creating number range? I didn’t see it from your document.

     

    Also, can you share how to generate file description?

     

     

    Thanks

    Hai

    (0) 
    1. RAHEEM BAKSH Post author

      Dear Hai Tran ,

       

      Number range is used for planning documents for object “FAGL_PL_LC“, This is require if you have activated planning in line item level.

       

       

      Activate it line item Level path – MG –> Financial Accounting (New) –> General Ledger Accounting (New)>Planning–>Plan Versions–> Fiscal-Year-Dependent Version Parameters–> Activate Line Items for Planning

       

       

      Regards

      Raheem

      (0) 
      1. Hai Tran

        Hi Raheem,

         

        Thank you for your advise.

        Previously, I can create document and I can see it from line item display with FAGLP03.

        However, currently I am unable to generate planned document number even I have configured everything needed.

        Can you share me your ideas?

        Thanks

        Hai

        (0) 

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