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Order related Budgeting with Project Systems

Hi Everyone,

Introduction

Project can accumulate costs from PO from MM, Plant Maintenance Order from PM etc.

Budget Availability Control upon the Costs triggering from PM Order when cost is incurred for Plant Maintenance Activity which is part of  a Project or WBS.

This blog post is on Work Order related Budgeting and complete end to end cycle, till settlement of the WBS.

Work Order related Budgeting with Project Systems -Operational Expenses

Project Creation: CJ20N

Use relevant Project Profile with Object Class- Overhead Cost (Non-Capital)

For Ex: Project Profile- Zxxxxxx–Non-Capital Proj

Co. Code: XXXX

Object Class: OCOST

 

We are trying to manage Operating Expenses in this case.

Budget Allocation to the Project/WBS- T.code –CJ30

Settlement Rule

Create settlement Rule- Edit- Costs-settlement Rule

Settlement Receiver  as CTR- XXXXXXXX to whatever cost center we want to settle.

Create Maintenance Order using T.Code : IW31

 

Budget Exceeded error, as the Material Price is more than Budget Allocated for WBS- TEST12345-2-1

Budget Allocated is 75

 

 

 

Budget exceeded error is due to the fact that the value of each is more than 75 value

Create Maintenance Order using T.Code : IW31

Maintenance Order – created successfully with material price less than 75 amount, which is less than the budget allocation for the WBS- TEST12345-2-1

 

 

 

 

 

Once MIGO is done actual cost flows to WBS

 MIGO Done and the Material Doc No : 4903073184

 

Check the Actual Cost Posted to WBS

Now, use CJ88 and complete the settlement which is normally a period end activity

One can see the settled Values using T.code : S_ALR_87013588

 

Conclusion :

Project System budget control is a versatile functionality which would control the budget availability at the WBS level and users have advantage to control and monitor their expenses doesn’t cross the allocated Budget.

Costs can come into project from various quarters like Purchase Order, Plant Maintenance Order or even from FI Postings through Journal Entry and of course all these shall be assigned with WBS as assignment to use this budget control functionality.

This particular blog post envisages upon the Costs coming from Plant Maintenance Order  as Operational Expense.

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