Investment Program Budgeting (Top Down)

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Procedure

1. Choose Budgeting  Edit original . You can enter budget values for all program positions in this transaction.

2. Select the Planned total column.

3. Select all the program positions for editing ( Edit  Select  Select all).

4. Choose Edit  Copy view to copy the Planned total view to the Overall values column of the budget .

5. Make any necessary increases or reductions to the budget values. For this purpose, you can use the Revaluate function
( Edit  Revaluate ), as you do for planned values. The system informs you of any errors in budgeting when you save your entries. You
can call up an error log by choosing Extras .

6. In addition to the overall values, you can also create annual values in order to specify when the overall approved budget becomes
available, according to year. In that case, you have to carry out steps 1 to 4 separately for each requested year.

7. If you created and approved the program budget in this way, you now have two options for how to handle the program budget or
measure budget:

• You can choose that the budgets of all measures belonging to a program position always have to be directly distributed to the
measures. For this option, set the Budget dist. overall indicator in the master record of the program position. (A default value for this
indicator is specified in the program type.) Once this indicator is set, it is no longer possible to budget the investment measures with
functions for budgeting orders and projects.

• With the other option, you do not set the Budget dist. overall indicator in the program position. In this case, the system cannot
transfer budget from the program position to the measures assigned to it. However, you can compare the total of the budget for the
measures to the budget of the program position in reporting (the two budgets are shown side by side). This comparison takes place
on a periodic basis. You carry out the budgeting of the investment measures separately, using the corresponding functions for orders
or projects.

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Distributing Budget to Measures

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Procedure

1. Choose Budgeting  Budget distribution  Edit  .

2. Enter the program position, to which the investment measure you want to work with is assigned. You could enter a program node
instead. The system then selects all end nodes of the program that are below the node you selected, along with their measures.

3. Select the measure type you want to process (order or WBS element).

4. Specify the type of activity you want - either distribution of original budget, supplements or returns.

5. Choose Execute . The system displays all measures for the program position you entered.
6. Assign the supplements/returns for the overall budget or the annual budget of the assigned measures. These supplements/returns
change the assigned value of the program positions they are assigned to.

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Budget Categories
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Use
You can manage several budgets in parallel for an investment program.

This is useful for managing separate budgets for costs to be capitalized and incidental costs that are not capitalized.

Prerequisites
You defined your budget categories per program type in Customizing for Investment Management (choose Investment
Programs → Budgeting in Program → Budget Categories ). The following budget categories are provided in the standard system:

1: Costs to be capitalized

2: Incidental costs not eligible for capitalization

You specified separation by budget categories in the definition of the investment program.

You assigned a usage indicator to the budget categories. This indicator permits the system to separate the actual values that come
due according to budget categories.

Features
When you have stipulated the use of budget categories in the definition of the investment program, you have to enter the values
separately for the budget categories when you budget the program. In the same way, you always have to enter plan values by budget
category.

Budget Categories and Measures

Investment measures do not allow for entering values by budget category, as is the case on investment program positions. On
investment measures, you enter plan and budget values without making any distinction regarding the budget category.

However, it is still possible to establish the proportion of plan and budget values from an individual measure that can be attributed to
defined budget categories (comparison in reporting). To do this, you can specify corresponding percentage rates per budget category.
This is done when assigning the individual measure to the investment program position. The plan and budget values of the individual
measure are then weighted with these percentage rates, and can be assigned to the appropriate budget categories.
Budget Categories

When you use budget categories, you have to budget your investment measures yourself directly. Budget distribution is not possible
from the program positions higher in the hierarchy (refer to Distributing the Budget from the Program Position to the Measures ).
Availability control is therefore only possible using reports in the Information System.

Standard Assignment of Actual Values to Budget Categories

For actual values, the standard system can distinguish the following kinds of debits:

Those settled to a fixed asset (= budget category 1, costs for capitalization)

Those settled to costs (= budget category 2, incidental costs not eligible for capitalization).

You assign actual values to budget categories by setting the usage indicator for the budget category (see above). However, this
separation of the actual values is only possible once the periodic settlement has been carried out (refer to Settlement of Investment
Measures ).
Be careful if the capitalization keys of an investment measure specify that less should be capitalized in the book depreciation area
than in the cost accounting depreciation area. (That is, a certain percentage of the amount to be settled is settled to nonoperating
expense, rather than to assets - refer to Periodic Settlement to an Asset under Construction ). If this is the case, the settlement
amount is nonetheless calculated with the total percentage of the cost depreciation area (at the moment always 100%) of budget
category 1 (= costs to be capitalized).

User-Defined Assignment of Actual Values to Budget Categories

There is another option in addition to the standard assignment of the actual values to budget categories 1 and 2. You can use user
exit AAIP0001 to create your own assignments to budget categories you have defined yourself (for example, by cost elements or cost
element groups).

For more information, see the online documentation for customer exit AAIP0001 (in transaction CMOD under Help ).

Information System

The individual budget categories are displayed separately at the level of the investment program, as well as at the level of the
individual measure, in the Information System.

Standard drilldowns report on budget categories 1 and 2 that are provided by SAP. If you work with your own user-defined budget
categories, then you have to enter them in the form so that the system can select the data records.

Example
The following graphic shows how the different budget categories are displayed in reporting:
The investment program has a capital budget of 1900, and a budget for costs that are not capitalized of 600. At the level of the
assigned investment measure, it was specified that the budget for the measure (2000) should be made up of 80% capital budget and
20% costs budget. Of the posted actual debits of 900, 600 are settled to an asset and 300 are settled to a cost center.

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