Planning the Budget

Use

SAP provides a number of functions in Business Planning and Simulation (BW-PLA-BPS) to make budget planning easier. For example, you can copy reference data to the individual FM account assignment. The budget data from the previous year of the plan year can be used as reference data. You can also use the commitment and actual data from two years before the plan year.

To simplify the following description, it is assumed that the budget data is planned for the year following the current year. The default values for the budget data from the current year and the commitment and actual data from the previous year of the current year are therefore used. 

If the plan year is not the year that follows the current year, change the periods.

This reference data is read from the InfoCube Commitment/Actual and Budget in Funds Management (Former) ( 0PU_C01). This InfoCube is used for reporting the transaction data for the budget and the assigned funds. This ensures that the budget is planned on the basis of current data and everyone involved in the budgeting process accesses the same data.

Prerequisites

You have to connect the two standard planning areas to the InfoCubes so that you can plan budget. The following assignments are required:

Assignment of Planning Area to InfoCube

Planning Area

InfoCube

Public Sector: Demo Budget Planning (1)

0PU_C01

Public Sector: Demo Budget Planning (3)

0PU_C30

You make these assignments by entering the RFC destination of the planning area in the tab page Attributes. The connection is made to the SAP-SW system using these destinations. If you use Business Planning and Simulation (BW-PLA-BPS) in the same system that is used as the SAP BW in your system landscape, select the option Local as the BW installation type instead.

The process control can be mapped using the status and tracking system. The system automatically determines the persons who are participating in the planning process using the person responsible for financing of the FM account assignment affected.

Procedure

The following description of the procedure for budget planning takes the roles of the participants in the planning process into account.

Preparation by the Administrator

The administrator ensures that the budget data or commitment/actual data is available in the planning area Public Sector: Demo Budget Planning (3) in which the planning is carried out.  The functions Transfer Data plays a central role and will be explained in more detail.

You call up the planning folder Administrator PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting. Using the function Transfer Data, the commitment and actual data of the previous year is read from the planning area Public Sector: Demo Budget Planning (1) and copied to the planning area Public Sector: Demo Budget Planning (3) of the same year. In addition, the budget data from the budget version 0 of the current year is read from the planning area Public Sector: Demo Budget Planning (1) and copied to the planning area Public Sector: Demo Budget Planning (3) in budget version 0 of the same year.

Entry of Planned Budget Values by the Departments

The departments enter the budget values in the individual FM account assignments. The copied values are displayed in separate columns as comparison values. To make the planning easier, the departments can copy either budget data or commitment and actual data to the plan year as default values.

You call up the Planning Folder  Department PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting.

Call either the function Copy Commitment/Actual to Budget Plan Year or Copy Budget to Plan Year depending on whether you want to use the commitment/actual values of the previous year or the budget values of the current year.  

Choose the layout Requirement Notification of Department to adjust the default values.

Provision of Data from Departments for the Budget Department by the Administrator

If the departments have finished entering the planned budget values, the administrator copies the values entered from budget version 10 to budget version 20.

You call up the Planning Folder Administrator PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the functionDepartment -> Budget Department.

Consolidation of Planned Budget Values by the Budget Department

...

The budget department consolidates the registered budget data of the departments by processing the data at department level in funds centers, not at commitment item level.

You call up the Planning Folder Budget Department PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the function Consolidation.  

The functions Copy Commitment/Actual to Budget Plan Year and Copy Budget to Plan Year are available in the department and in the budget department. The difference is that the department only receives the data for its area of responsibility while the budget department has access to data from all areas. However, only one of the two departments should use this function.

Provision of Data from the Budget Department for the Head of Administration by the Administrator

If the departments have finished entering the planned budget values, the administrator copies the values entered from budget version 20 to budget version 30.

You call up the Planning Folder Administrator PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the function Department -> Budget Department Head of Administration.

Consolidation of Planned Budget Values by the Head of Department

...

In this step the data is summarized further, that is, the levels of the commitment items and funds centers are no longer visible for the head of administration.

You call up the Planning Folder Head of Administrator PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then change the given values if necessary.  

Providing Data of Head of Administration for the Budget Department by the Administrator

If the head of department has finished consolidating the planned budget values, the administrator copies the values entered from budget version 30 to budget version 40.

You call up the Planning Folder Administrator PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the function Head of Administration ->Budget Department.

Revision of Planned Budget Values by the Budget Department

The budget department processes the proposals of the head of administration at the level of the funds centers by incorporating the amounts that appear in the lines marked blue for the unspecified funds center into the funds centers underneath.  Version 40 can only be saved when the unspecified budget values are completely incorporated.

You call up the Planning Folder Budget Department PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the function Revision by Budget Department.  

Provision of Data of Budget Department for the Departments by the Administrator

Once the budget departments has included the proposals of the head of administration, the administrator copies the values entered from budget version 40 to budget version 50 which makes them available to the department.

You call up the Planning Folder Administrator PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the function Budget Department -> Department.

Revision of Planned Budget Values by the Departments

...

The departments process the proposals of the budget department at the level of the commitment items They do this by incorporating the amounts that appear in the lines marked blue for the unspecified commitment item into the commitment items underneath.  Version 50 can only be saved when the unspecified budget values are completely incorporated.

Projection of Planned Budget Data for the Next 5 Years

The budget department can project the consolidated budget values for the plan year for the next five years and map a medium-term financing plan, for example.  The projection is based on the budget data that is saved in budget version 50. SAP delivers a sample for this projection in which the budget values increase by 3% every year. You have to adjust the sample if you want to use other values. Check whether the periods in the sample suit your budget planning.

You call up the Planning Folder Budget Department PSM in the planning content Public Sector Management  ® Budget Planning ® Former Budgeting and then the layout Projection: Several Follow-On Years.  

Result

At the end of this planning process, you have saved planned budget values for the plan year and the next five years. You can transfer these budget values to your operative system for Former Budgeting using plan data transfer. You can find information on this in the implementation guide of Funds Management Government in the area Plan Data Transfer from SAP BW to Funds Management.