You are on page 1of 64

SAP Fund Management

Budget Control System


(FM - BCS)

Agenda

Budget Overview
Budget Control System (BCS)
Revenue Budgeting
Budgeting Process in SAP

Budget Overview

1.

What is Budget

2.

Type of Budget

Budget
What is Budget

An important instrument of
the financial management
used as aid in planning,
programming and control

A budget may be defined as a


financial and quantitative
statement, prepared and
approved prior to defined
period of time, of the policy to
be pursued during that period
for the purpose of achieving
the given objective.

Type of Budget

Operating revenue budget- related to volume of work anticipated

Operating expenditure budget: recurring expenditures for operation


and maintenance of services e.g. salaries and wages, supplies,
support utilities, maintenance

Capital budget ( non recurrent ): meant for growth ( new facilities),


replacement of obsolete. Needs are many prioritize

Cash budget : provision for anticipated cash expenditures , for


planning the cash flow e.g. salaries, bills etc.

Budget Control
System (BCS)

1.
2.
3.
4.

Describe the major features of the new Budget Control System (BCS)
Discuss differences between BCS and Former Budgeting System
Describe how to enter budgets in BCS
Describe availability control using BCS

Why BCS?
Topic:
Budget Control System (BCS)
Why did we develop this functionality?

JFMIP Requirement:

Funds Management function

Agency Requirement:

Agencies have asked for more flexibility and capability

What is the Business Process?

Functionality to support full range of activity associated with BCS:

Budgeting

Availability control

BCS replaces the old Funds Management, now called Former Budgeting

Not just federal. State, local, and others can also use it.

Main Ideas of BCS


No hierarchies in budgeting data itself

Organizational changes simplified

Hierarchical evaluation of data via reporting

Enhanced usability and clarity of data stored

Better performance
Reporting

Budgeting

C: 300 $

A: 1550 $

B: 250 $
A: 1000 $

B: 250 $

C: 300 $

Main Ideas of BCS


Concept of process and budget type

Processes are defined by SAP and represent the budgeting


framework provided

Enter

Transfer (Send/Receive)

Return

Supplement

Carry Over (Send/Receive)

Budget Types are specified by the customer to refine this framework


to the needs of the customer
Possible uses of Budget Types:

Refinement/differentiation of processes
(budget type as sub process)

Keep information of original process during transfers/returns


(budget distribution)

Budget type to hold budget status information (US Federal)

Main Ideas of BCS


Concept of Key Figures

Customer defined views on budget data

Use in multiple contexts

Transparent Consistency Checks

All Consistency Checks are customer defined

Powerful Availability Control

Flexibility

Scalability

Encapsulation from budgeting

Introduction of a Status Management to control


different phases within the budgeting cycle

Main Ideas of BCS


Flexible Budget Structure independent of master
data hierarchy
Extensive use of CO-PA Assignment Tool

Availability Control

Budget Structure

Various BAdIs

Features of Former Budgeting vs. Budget Control


System
Features

Former Budgeting System

Budget Control System

Yes

No

Budget categories

Versions

X (SAP)

X (Customer)

Process

X (SAP)

Releases

Fund Center

Fund Center

Commitment Item

Commitment Item

Fund

Fund

Functional Area (Optional)

Functional Area (Optional)

Hierarchy In Budget value

Budget Type

Master Data Used In Budgeting

Funded program (optional)


Grants (optional)
Multilevel Availability Control

No

Yes

Preliminary Budget Posting

Yes

Yes

Tolerance Limit (Absolute / Percentage)

Yes / Yes

Yes / Yes

Document Type for Budgeting document

No

Yes

Definition of Key Figure (e g current budget)

No

Yes

Create Budget Document with Reference

Yes

Yes

From Year

Per Year

Definition Posting Objects also for revenue account assignments


Budget Structure Plan

FBS or BCS?
FBS and BCS are both available.
Use FBS if:

You cannot use BCS

Release restriction, e.g., you are a German Local Authority


Missing functionality, e.g., Year of Cash Effectivity

Use BCS for:

Grants Management integration with FM budgeting

New master data dimensions (grant, funded program)

New architecture (no hierarchy as previously)

New functionalities (US)

If there is no special need to use FBS

Budget Control System

BCS Budgeting

Budget Structure

Budgeting Workbench

Key Figures

Consistency Checks

Status Management

Functional Overview: Budget Structure

Definition of allowed FM account assignments

Budgeting (Budget Addresses)

Posting (Posting Addresses)

Definition of link between Posting and Budget


Addresses for

Availability Control

Carry Over of residual budget

Carry Over of budget for commitments

Main Ideas of BCS


Support of six dimensions (plus hidden customer dimension)

Fund
Funds center
Commitment item
Functional area
Funded Program
Grant (integration with GM)

Two Budget Categories: payment and commitment budget

US public sector uses only payment budget

Multiple Budget Versions in parallel


New FM functionality is and will be targeted at using BCS, not Former
Budgeting

Reporting (only in R/3, not BW)

Check on allowed objects can be deactivated


separately for budget and posting objects
Definition of link between posting and budget objects
via derivation rules (CO-PA Tool)

Budget Structure: Graphical Overview

Availability Control

Budgeting

Posting

Budget Structure

Functional Overview: Budgeting Workbench


Budgeting Workbench (FMBB)

Document oriented transaction to enter budget data

Single entry transaction offering all functionality related to


budget entry documents

Some flexibility in layout (choose fields for header/lines, display


key figures)

Held Documents
Header area

Item area

Navigation area

Functional Overview: Key Figures


Key figures (FMKFDEF)

Rules for data aggregation from various data sources

Budget data

Commitment and actual data

AVC data

Key Figure category defines scope of use

Display in Reporting/Display in BWB

Mass transfers/Year end process

Consistency Checks

Budget
lines

DB

Key Figure
value

Key figure
evaluation

Functional Overview: Consistency Checks


Consistency Checks (FMCCA, FMCCD)

Customer defined checks based on key figures

Two kind of checks are included in the tool:

Address oriented checks:


Take into account all values for a given address

Entry document oriented checks:


Take into account all lines of a given document

Status Management

The budgeting cycle can be split up into different phases.


For each phase (status code), you specify which combinations of
budgeting processes and budget types are allowed.
You also specify which status code applies to each budget
version.
Authorization groups can be assigned to status/process/budget
type combinations.

Status Management Example


Budgeting calendar for:

2002
July 1

FM Area 0001

Version 0

Budget category PB

Fiscal year 2003

Fund FUND1

2003
Sept 1

Status 1

Oct

Status 2

Preparation

Cons. of
preparation

Original

Original

restricted
user group

Mar

Status 3

Operation 1
Transfer 1
Transfer 2

July

Status4

Operation 2

Transfer 2
Transfer 3

Aug
Status 6

Oct
Status 7

Status 8

Internal
adjustments

Year end

Block

Transfer 3

Carry
Forward

Nothing
allowed

Budget Control System

BCS Availability Control

Concept and functional overview

Basics of availability control

The availability control checks that the consumed amount does


not exceed the consumable budget on a control object taking
into account tolerances, which can be customized in the system.

Basic Questions of Availability Control (AVC)


What kind of budget has to be checked?

Budgeting: What contributes to the consumable budget?

Where is the budget against which the consumptions


should be checked?

Posting:

Where is the object holds the consumable budget?

How must the check be performed?

BCS:

What?

Filters ( consumable budget )

Where?

Derivation rules for control objects

How?

Tolerance profiles

Principle Goals of BCS AVC

Flexibility

Simplified use

Definition of rules for deriving the


check objects (= control objects)
Definition of consumable budget
(e.g. active version)

Centralized Customizing
No implicit rules

Availability Control Ledgers

The AVC writes data to a so-called


Availability Control Ledger

An availability control ledger is a specific view on (or aggregation of) a


complete budget and the assigned budget consumptions

The user activates one or several availability control ledgers for each
budget category.

AVC ledger 1

AVC ledger 2

Payment

Commitment

(delivered by SAP)

(delivered by SAP)

AVC ledger 3

AVC ledger 4

Payment

Commitment

(created by customer)

(created by customer)

Filters

AVC filters define which values are relevant


for Availability Control

Example: filters for budget values determine which kind of budget


values define the consumable budget for postings

Budget version
Document state
Budget type

Concept of AVC Control Objects

Derivation rules

determine where budget consumptions are compared to the


consumable budget ( definition of the control object)

are attached to each availability ledger

are defined as Strategies of the CO-PA Derivation Tool

Tolerance Profiles

Availability Control actions

Error

Warning

Warning with mail

Tolerance limit: relative usage rate (in %)


In Tolerance Profiles per activity group different
tolerance limits together with corresponding actions
can be assigned
Activity groups are customizable

General Remarks about Technical Design

AVC data kept completely separate from budget data


in AVC Ledgers
Possibility to keep multiple Ledgers in parallel and
therefore to allow multiple checks in parallel
AVC Ledgers technically are ledgers of an FI-SL table
group (FMAVC)

Multi Level Availability Control


AVC Standard
Ledger 9H

AVC Customer

Control object 4

Control object 3

Ledger $2

AVC Customer
Ledger $1

Control object 2

Strategies
AVC Customer
Ledger C1

Control object 1

Payroll posting
Budget object
Posting object
Post budget
Post actuals/commitments

Requirement
Posting on:
Commitment Item 11.11

Fund Center 10042

Fund 400

Must be checked on:


Level 1

Commitment Item 11.

Fund Center 10042

Fund 400

Level 2

Commitment Item 11.

Fund Center 1004

Fund 400

Level 3

Commitment Item 11.

Fund Center 100

Fund 400

Level 4

Commitment Item 11.

Fund Center 10

Fund 400

Example for multi-level checks

Level:
Level 1

Check
type:
$1300
FC1 / CI TOP

fatal

Values = expendable
budget
Expendable budget =
Consumable budget
Consumed amount
FC2 / CI2s cons. budget =

Level 2

fatal

$400
Payroll

$900
FC2 / CI 2

FC2 / CI2s own budget +


FC3 / CI2s own budget +
FC4 / CI2s own budget

Level 3

informational

$400
FC3 / CI 2

$400
FC4 / CI 2

Example for multi-level checks


1st posting: $1200 to payroll node
Level:

Check
type:

Level 1

fatal

Level 2

fatal

Level 3

informational

Posting passes all


check levels due to
tolerance settings
for activity group
payroll

$100
FC1 / CI TOP

-$800
Payroll

$900
FC2 / CI 2

$400
FC3 / CI 2

$400
FC4 / CI 2

Example for multi-level checks


2nd posting: $500 to node FC4 / CI2
Level:
Level 1

Level 2

Level 3

Check
type:
-$100
FC1 / CI TOP

fatal

fatal

informational

-$1000
Payroll

Posting does not pass


this level error

$900 ($400?)
FC2 / CI 2

$400
FC3 / CI 2

Posting would pass


due to available budget

$400(-$100?)
FC4 / CI 2

Posting would
pass due to
informational

Example for multi-level checks


Ledger 1: Control objects only on check level 1
Level:

Control
objects:

Level 1

Yes

Level 2

No

Level 3

No

Default tolerance
profile: fatal

$1100
FC1 / CI TOP

($200)
Payroll

($100)
FC2 / CI 2

($400)
FC3 / CI 2

($400)
FC4 / CI 2

Example for multi-level checks


Ledger 2: Control objects on check levels 1 and 2
Level:

Control
objects:

Level 1

Yes

Level 2

Yes

Level 3

No

Default tolerance
profile: fatal

$0
FC1 / CI TOP

$200
Payroll

$900
FC2 / CI 2

($400)
FC3 / CI 2

($400)
FC4 / CI 2

Example for multi-level checks


Ledger 3: Control objects on check levels 1, 2, 3
Level:

Control
objects:

Level 1

Yes

Level 2

Yes

Level 3

Yes

Default tolerance
profile:
informational

$0
FC1 / CI TOP

$200
Payroll

$100
FC2 / CI 2

$400
FC3 / CI 2

$400
FC4 / CI 2

Revenue Budgeting

1.

Revenue Projection

2.

Basic business benefits

Revenue Projections
What is Revenue Projection ?
How do you project revenue?

Part science

Part art

Part philosophy

Part luck

GOAL: Some revenue sources


exceed projections by similar
amounts that other revenue
sources lag behind projections.

Basic Benefits of Revenue Budgeting


Basic Benefits

Quantitative expression of the


Revenue planning

Evaluation of financial
performance in accordance
with plans

Optimizing Revenue

Controlling costs

Optimizing the use of


resources

Directing the total efforts in to


the most profitable channels

Budgeting in SAP

1.
2.
3.
4.

Budget Planning
Budget Execution
Actual / Commitment Update
Reporting and Monitoring

Budgeting in SAP
SAP Budget Control System provide extensive functionality in
following aspects

Budget Planning

Budget Execution

Actual / Commitment Update

Reporting and Monitoring

Budget Planning
You may do Budget Planning by following tools

From SEM-BPS, Strategic Enterprise Management Business Planning


Simulation

From Controlling

From external data, legacy systems, and MS Excel

From BCS Entry document-oriented copy transactions

Budget Planning Process

You can use budget plans from previous years as a template for
budget planning.

Budget Planning Overview

Planning Tool I Planning with SEM BPS

Budget Planning II Planning with Controlling Data

Planning Tool III Planning In FM

Budget Execution : Budgeting workbench

SAP Screen FMBB for Budget Workbench

Budget Control System

Actual / Commitment Update : Integration

Integration with SD Module

Revenue Scenario

Reporting and Monitoring


BCS Provide following reporting and monitoring system

SAP BCS Information System

Drilldown Reporting System

BIW Information System

Reporting in SAP BCS

Further Processing option

SAP BCS Information System

Sample Line Item Reporting

Drill down Reporting Tool

Sample Drilldown Report

SAP BW Reporting for BCS