Scenario : To map a process in SAP , where a budget should be allocated to maintenance department for major maintenance task and user should not be allowed to exceed the expenses than budget amount .

Solution : Solution for the same is explained in two ways :

  1. with PM order budgeting [ Recommended]    and , 

  2. Internal Order budgeting [ can be used for information purpose at higher level ] .

Configuration : This involves configuration from both PM & CO side .

Configuration Steps CO :

1. Create Budget Profile :

3_maintain budget profile_path.PNG

4_budget profile_details.PNG

Here past , future & start field values indicate the period upto which you can do budgeting . Here above config means for a internal order , you can specify budget for next 5 years .

Activation type 1 is automatic activation of budget .

Save budget profile .

2. Define Internal Order Type :

1_define order type.PNG

2_order type details.PNG

In the Internal order , mention budget profile if the budgeting is also required at internal order level otherwise this budget profile should be assigned to maintenance order only .

Click Field selection button :

field selection_IO.PNG

field selection_IO_1.PNG

After saving the order type , create number ranges for the same order type .

3. Define Tolerance limit :



Here , Act. = 1 means warning and usage = 80 means when the actual expenses reach 80% of the allocated budget system issues warning .

In the second line Act = 3 and Usage 99 means at 99% system issues error message .

PM Configuration :

1. Assign budget profile to PM Order :

7_configure PM order types_path.PNG

8_configure PM order types_details.PNG

Transaction level :

1. Create Order (IW31 )  and save it .

2. Assign Budget to it ( tcode : KO22) .

NOTE : Here the budget is being allocated to PM order , if you want to compare actual cost with budget when issue is being done on PM order . If you want to do the same for internal order in KO22 use internal order and settle your PM order to internal order using tcode KO88. But using KO22 for PM orders is recommended , as it will fulfill process needs in a better way .

Drawback of using internal order could be that first you have to settle your PM order to this internal order and only then budget will be compared .

Generally we use internal order budgeting for PM to bring the cost to the notice of management . This notice can be after the actual consumption whereas budgeting at PM order level will help you to mitigate this drawback .

assign budget.PNG

Save it .

3. Create Reservation in Order ( IW32 ) :

Reserve a component in order . After you reserve components in order and save it . Cost will appear in Planned Cost column :

12_cost tab of order.PNG

Now as planned cost has increased budget system will not issue any error . Error will be issued when you will issue the component .

4. Issue component ( MIGO :

migo error.PNG

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    1. nikki saju

      Budgets entered can be checked for control per annual or overall basis (total for all years) also. This setting is available in the Budget profile for the CO Internal order. Please check that will be useful to you.

  1. Muthukumar T

    i want to know where this comparison happens actually,whether this happens while system calculating planned costs or it happens after teco in actual which exact point system calculates the costs and throws a pop message.

  2. Maheswaran KD .

    There are 2 concepts in Budgeting.

    1. Procurement Budget
    2. Consumption Budget

    Procurement budget will be helpful to restrict the PR / PO creation. Consumption budget will be helpful at the time of actual consumption.

    Using Funds management, we can have Procurement or Consumption budget or both.

    Not possible with Internal order / Maintenance order budgeting.

  3. Rajesh chowdary


    I Think its wrong Document BecauseĀ  In 2 The Screen Shot order category is 01 internal order ,WhileĀ  in 6th Screen Shot order category is 30 Mainte order……. If possible Share the Correct data


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