Budgeting is to make sure that we are within the bounds of what an organization can afford.
The objective of this chapter is to help in funding a compensation plan, creating a budget structure, uploading budget values, understanding the underlying configuration options, working on the exception.
4 Budgeting
Budgeting is an important part of compensation management. Though it’s an optional thing to have a budget for a plan, it will most certainly be used in most cases because of the value it brings. Budgeting helps in managing the overall money that is available for distribution. If a manager goes above the budget, the system itself might not allow it or at least gives the manager a alert that he/she is going over the budget.
There are different ways that the company might arrive at the budget. There is a lot of survey information that the company can avail themselves of. This market information will assist them in defining the target bonus. The target bonus is a bonus that an employee in a particular job might be eligible for if they have performed at par during the year.
Internally the company can review the payments they have made during the years and do some what-if scenario simulation. If they like one of the scenarios they could transfer that information directly as a budgeting amount.
It’s important to remember that the whole budgeting exercise depends on the organizational structure that the company has adopted. There is one organization structure within SAP that is used for multiple functions. The standard setting for this plan version is ‘01” by default. It is used also for workflow, reporting, position management, linking it to employee records etc…
4.1 Using Job Pricing and Market Surveys [make it a different chapter]
Job pricing helps us determine the pay structure of each of job in the company. For example: HR manager is the company is paid $60,000 basic pay and $6,000 bonus but on analyzing the comparable job from the market survey’s the company might find that the market average is $70,000 basic pay and $10,000 bonus. Now the company can decide what it wants to do. Does it want to continue to lag the market with lower pay, does it want to make it at par or does it want to lead the market by substantially increasing the salary and bonus.
This whole process with its more detailed steps is laid out in the process figure below.
Figure 4.1 Job pricing process
We will describe each job pricing step in details. Compensation Specialist use Portal screens since it provides comprehensive functionality. It allows you to setup the Provider data, then import their data into the system, followed by matching the jobs in the system to the jobs of the provider, then aging the data to ensure relevancy, combining results from multiple vendors and create a composite result, then make salary structure changes if required.
Figure 4.2 Job pricing launcher
4.1.1 Job analysis
Jobs are created in the system based on the requirements of the company. Also the job descriptions are created to define the job. This is an important task but there is a lot of debate on the how to define the job. One school of thought is to define it to the detailed level that exactly lays down the duties and responsibilities of the job. Another school of thought is to define the job broadly. The reason is that we are in a dynamic environment and jobs should be broad enough to be adaptable to this evolving environment. We will leave this for the HR professionals to figure out. ECM provides the ability to capture it either way.
4.1.2 Select Survey provider
There are a lot of survey providers. There are survey providers that cater to specific industry or specific location or specific jobs etc… There are also larger providers that provide all kinds of survey. There is a cost associated for buying these surveys and hence it’s important to figure out which ones do you want to buy. There are also special incentives that the survey provider gives if your company participates in the survey itself.
ECM allows us to create and maintain as many survey providers as we want by selecting the ‘Provider Data” link.
Figure 4.3 Create and maintain salary survey providers
The provider data screen displays data as you start clicking on the provider. It builds information based on the selections.
Figure 4.4 More information on the Provider data screen
4.1.3 Receive Survey data
Survey provider provides you with the survey data. The data can include a lot of information including the date of the survey (normally the year of the survey), the jobs surveyed, and the aggregate pay information from the companies that participated in the survey at 10 percentile, 25 percentile, 50 percentile, 60 percentile, 75 percentile and 90 percentile.
Once we receive the data, we would need to decide which one is still relevant for us to upload into the system. We should validate the data at a high level to ensure that we are loading only what we need.
4.1.4 Import survey data
It requires some basic training to navigate the ECM Portal screens. There is a particular way in which the portal works and need to be understood. It’s very important to remember that till you don’t make the selections, you will not see the subsequent screens. The portal screen ‘builds” up dynamically as you make your selections.
Once we click on Import Data, we must select our Survey provider from our list. We can search all the survey providers by entering ‘*” in the Search for field and hit ‘Go”. All the available survey providers will be displayed and we can click on the one we want.
Figure 4.5 Import survey data selection screen.
Once you click on the left most columns that have theo, the next view adds into the frame. On selecting one of the providers, we will get another screen that will guide us through the subsequent steps.
Figure 4.6 Import salary data upload options
Each provider provides their own proprietary formats to upload the file. There are a couple of parameters to upload the file. We need 3 types of data files to import to complete the process. Before we can start uploading the survey information, we need to setup the Survey catalog and the survey job description.
The survey job catalog allows loading all the jobs related to the survey provider.
The Survey description allows loading all the job descriptions from the survey provider.
The survey market data allows loading all the market survey information from the survey provider.
Each of the file loading activity follows a process
Upload the file
Map the fields from the vendor to SAP
Import the data
4.1.5 Job Matching
Each survey has their job titles. They have to be deliberately matched to the job titles in the company. Same titles don’t guarantee that the jobs are the same. There has to be a due diligence that needs to be done before the mapping exercise is completed and approved. After the data import is complete, the jobs from company are matched to the jobs from the survey.
Figure 4.7 Job Matching
If you try to match the same job to multiple survey jobs, you could get the following error
Figure 4.8 Job matching error
In certain cases you might get a short dump when you try to unmatch jobs. There is an SAP note Note 921064 that can help resolve the issue.
4.1.6 Import Job Market Data
Once the jobs have been matched, then next step is to import the job market data. This step ensures that the data is correctly aligned to the actual jobs.
In certain cases, survey data upload doesn’t store the 60th percentile. There is an SAP note Note 886465 that can help resolve the issue.
Figure 4.9 Import Survey market data
Figure 4.10 Field assignments/ mapping
The final step is import the data.
4.1.7 Age data
If you had bought a survey a couple of years back and would like to use it today then you need to age it accordingly. The system allows for aging either by market movement rate or age factor.
Figure 4.11 Aging market data
Once you decide that you want to age by market movement rate, you enter the annual rate that the pay might have increased. If the initial survey is 4 years old and the market movement rate is 2%, then when you hit Age Market data, the salary will be adjusted by about 8%.
If you were to use age factor, it would increase the pay by that flat amount.
4.1.8 Weigh data
The data can be collected from various sources but then they can be weighed so that the final result reflects the calculations accurately. For example, you would have collected the base salary for a Sales employee from a survey with the same job and another one from a little less matching job. You can weigh the survey which had the same job higher than the one that had a less matching one. We can also provide the market movement data rate to make a more current comparison.
Figure 4.12 Weighing Data along with aging parameters
Once you decide the right weight, you can click on the Build composite result,
4.1.9 Compile market data
You can choose the appropriate data that you want to use to create a composite structure. In the case below, we have selected the 2 relevant surveys for our job to create a composite. You can also store this information using the ‘Save As’option.
Figure 4.13 Build composite results
This data gets store on the job infotype 1271.
Figure 4.14 Composite Results infotype
You will see that the 60th percentile row field incorrectly displays 0.00. If you see a similar thing, please review the SAP note 886465. This is related to the problem during the ‘Import Data’ step.
4.1.10 Data Analysis
These allows us to compare the internal job with the composite result of the external survey. The job is evaluated with all the different percentiles.
Figure 4.15 Compare internal and external compensation
4.1.11 Determine market gap
In this way, the compensation specialists will determine the market gaps for the jobs they need to make the determination.
4.1.12 Philosophy
The philosophy of the company will drive the route it takes to bridge the gap. If it is lagging behind the market and choses to lag behind, it doesn’t need to take further action. But if it wants to be at par or even lead the market, it will need to make the determination of what the new structure needs to look like.
4.1.13 Identify jobs
After reviewing the data, the company will identify the jobs that need to have the salary structures changed.
4.1.14 Adjust salary structure
It is very important to remember that we have been doing job pricing for the job but when it comes to updating, it the salary structure. The salary structure could be used by multiple jobs. It could happen the inadvertently we might update the salary structure thinking we are updating it based on the job analysis, but effectively it might change it for other jobs that we didn’t intend to.
Figure 4.16 Salary adjustment with current salary structure
The composite market data is available.
Figure 4.17 Composite Market data
Now we have seen the existing structure and market structure. We have to decide on the planned structure. The final tab Planned Salary Structure will display a merged result.
Figure 4.18 Merged planned salary structure
Please note that it’s very important to remember that the selections that you make on the previous screen are considered for the proposal. In the market data on the previous screen, we had selected ‘Managers composite’and hence we get this result. If we select something else, the results will change.
Before save this as the new proposed structure, we can view many graphical representation of our data. We can compare the percentage different between the internal salary structure and planned salary structure. The bars show the difference. Where there are no bars, means that there is no difference from the existing internal pay structure.
Figure 4.19 Graphical representation of internal v/s planned salary structure
If needed, you can make arbitrary changes to the structure. This might be required for the purposes of rounding or aligning with company’s internal guidelines. We can overwrite the salary structure as in the case below where we have changed the planned structure for grade GRD01/ level 00 from 26400/38400/50400 to 27000/38400/51000.
Figure 4.20 Changing the proposed structure
We can save different planned salary structures in the system.
Figure 4.21 Saving the planned salary structure.
4.1.15 Activate salary structure
Once it’s decided that you have a winner, and then the system needs to be updated to reflect the new salary structure.
There is a twist here. All the data is in the production system but salary structure changes are normally done in the development system and transport to production. This is achieved by providing the RFC connectivity.
Once in Development environment, go to Personnel Management • Enterprise Compensation Management • Job Pricing • Pay Grades and Levels • Update Pay Grade Amounts from Market Data. This might need to be done by a configurator rather than the compensation specialist.
Enter all the requisite information and also the RFC destination of the production system from where the Salary Adjustment Version has be retrieved.
Figure 4.22 Update salary structure
Once the new salary structure is retrieved, it can be displayed before a transport is created.
Figure 4.23 Perform salary structure update and create the relevant transport
This ends the compensation specialist process for updating the salary structure. If an employee’s salary needs to be changed, then it will be a part of master data administration separately.
4.1.1. Receiving data from Market Surveys (is captured above)
4.1.2. Sending data for Markey Surveys
Many companies take part in market surveys. To facilitate submitting the data for the salary survey, ECM provides extraction report. Execute transaction code PECM_QUERY_SURVEY
Figure 4.24 Sending salary survey data
The salary survey data can be extracted for a particular population using the selection criteria.
The compensation jobgroup is very specific to ECM. It allows the selection to be limited by jobgroups. It is also important to note that the internal jobs should be mapped to the survey jobs before this report can be run.
Figure 4.25 Salary survey participation details.
SAP provides standard output. You might need to work with your vendor to validate if the output will work for them.
The standard pay categories that are delivered are Base pay, bonus and total compensation. In case you want to add other pay categories, you have to begin with the configuration:
Figure 4.26 Additional configuration for pay categories
Let’s add another pay category ‘Training Cost’. To do that, we will add it using ‘Define Additional Pay Categories’
Figure 4.27 Adding Pay category
We also need to define how we are going to calculate this field using ‘Define Pay Category attributes’
Figure 4.28 Training Cost attributes
The standard survey participation reports also needs to be modified if this information needs to be send to the external vendors that provide relevant survey data.
Note: Compensation Jobgroups
Compensation jobgroups are used to group jobs based on the company’s need. This attribute is one of the newer attributes that is attached to the job using the infotype 5050. The jobgroups need to be configured first in the IMG for ECM at Job pricing • Define Compensation Job Groups
Figure 4.29 Define Compensation Job Groups
This job groups then need to be assigned to the appropriate jobs. We will use transaction code PP01 • Select a job • create ‘Compensation job groups’ • assign the job group
Figure 4.30 Assign compensation job group to the job
This information can then be used in the salary survey participation data selection criteria.
There is one more aspect that I want to cover here. This is related to Job Evaluation. Internal job evaluations were also very common some time back. Each job was evaluated internally and given points based on its importance. The information can still be captured using the infotype
Figure 4.31 Job evaluation
ECM provides multiple methods to do job evaluation. Different methods might to linked to different vendors.
The results can be points or evaluation group. An Evaluation group is a grouping of jobs that have a similar internal worth.
Figure 4.32 Job Evaluation groups
During an implementation, certain configurations can be realigned to fit the requirements. In the above case, the evaluation methods could be classified as Internal and External and the evalution groups could be configured as vendors.
4.1.3. Aging the Market Survey data (is captured above)
4.1.16 Technical information
All the information of the Job Pricing is stored in tables that begin with T71JPR. There are 42 such tables.
Figure 4.33 Job Pricing tables
4.2. Using Personnel Cost Planning
4.2.1. Data for PCP
4.2.2. What-if scenarios
4.2.3. Configuration
4.2 Budgeting
Budgeting is a very useful though optional functionality for compensation management. Budgeting helps in managing and distributing the compensation money across the organization. The compensation specialists compile data, run through different what-if scenarios to come with a budget for a compensation plan. Traditionally, spreadsheets have been used for most of the work but SAP also provides Personnel Cost Planning module to facilitate this process sometimes called funding a plan. Once the funds are approved, they become budget and are loaded in to the system. If there are employee movements after the budget has been approved, the budgets can be reassigned even after they have been released.
These options are provided using the Compensation Budgeting Portal option of Budget maintenance. The compensation specialist would have access to this.
Figure 4.34 Initial Budgeting Screen
4.2.1 Creating the Budget Structure (rename it to Budget Maintenance)
By pressing the ‘Create’ button we can start the process of creating a new budget. We can select the budget type, budget period, top organizational unit to begin the budget from and the depth till which the budget should be created. The column ‘Units’ will be used in case we are use stock based rewards. Once all the values are entered and we click save, the budget units are created. Budget units are SAP objects that make budgeting possible. Each budget directly finances the organizational unit it is connected to and any organizational unit under it that doesn’t have a budget unit. In the simplest form, one budget unit can be assigned to the top most organizational unit and the rest of the organizational units will get their allocations deducted from the big pot. If we create budget for each of the organizational unit, we will have the ability to assign budgets to each organizational unit and the hierarchy created automatically forms the budget hierarchy.
Figure 4.35 Creating Budgets
There are 3 steps in budget maintenance
V Creating the budget structure by copying from existing organization structure
Modifying the budget structure
Populating the budget amounts
Copying from existing Organizational Structure
It’s very easy to create the budget structure. The following information is needed:
Budget type- We have an Annual bonus budget that is going to be used in the year 2008 for the performance in the year 2007.
Budget period- This needs to be clear. It refers to the year when the budget will be used. The plan’s other values like eligibility and awards would be applicable for 2007.
Org unit
ID- This refers to the highest level of org unit that we want to budget from. If the org unit ID is known, it can be entered otherwise help can be used to search for the org unit ID.
Depth- This is important to understand the impact. If we keep it zero, budget structure will be created for each of the org units in the hierarchy. If we keep it 3, then it will create budget units up to 3 levels from the highest level This is preferred in some companies where the managers at a lower level in the hierarchy don’t have a separate budget but align to a bigger pool from senior managers.
Unit- This is applicable with Long term incentives.
Figure 4.36 Create a budget structure
The output is a complete budget structure financing the organizational structure. The system allows you to add the total budget. The distributable budget at an org unit level is calculated by total budget at the org unit level less the total budget under it’s hierarchy. The budget unit 50039103 is financing the Org unit 00000300 Executive Board-
USA. The budgeting works bottom-up. You assign the budget to the lower level budget unit.
Figure 4.37 Budget structure financing the Organizational structure
Modifying the Budget structure
The budget structure can be modified where we can create/ delete budget units or add/ remove financing relationships.
We can add more budget units to the existing structure. Select the budget unit under which you want to add a sub-budget unit • click ‘Create’ • Provide the name and abbreviation of the budget unit • click ‘Save’. The budget unit will get added and it’s a good idea to click ‘Collapse all’ and then reopen the structure.
Figure 4.38 Modify budget structure to add budget unit
To move another budget unit under ‘Support Service’ budget unit, you have to first ‘Delete Assignment’ and then ‘Assign Budget’ to the ‘Support Service’
Figure 4.39 Reassign budget
This maintenance helps in creating different budget structure than an existing organizational structure. Though it’s not recommended, it might come in handy in case of exceptions.
When creating an org structure automatically, one budget unit is created for each and every org unit. It might not be required in certain cases. Multiple org units can be attached to one budget unit.
Note: Saving the changes
You will always have to click save that is on the top left to save any changes you make to the structure. Though not very intuitive, any change the you see on the portal screen is not committed till you click that save button. It’s like the master save button for any budget structure changes.
Figure 4.40 Assigning multiple org units to one budget unit
The organizational unit of Hospitality and Operations is being financed by the one budget unit of Operations.
Populating the budget structure
Once we have created the budget hierarchy, we can start assigning the budget amounts. You can click on any budget unit and add the budget amounts.
There are multiple ways of adding the budget amounts.
V Manually add the budget amounts using the Portal
Automatically transfer budget amounts from PCP
Figure 4.41 Different options to update the budget amounts
Manually add the budget amounts using the portal
The manual process can work in 2 ways. Each individual manager can enter their own budgets and then we can hit roll-up on the top level budget unit to create the overall budget.
Figure 4.42 Manually entering the budget amount
The compensation specialist can do different scenario planning using Personnel Cost Planning. PCP is a totally different topic by itself but has this link with ECM to update the budget. There is ‘Import PCP data” option.
Figure 4.43 Using Import PCP data to upate the budget amounts
There is also a custom option. It provides a BAdI for companies to write their own custom logic to populate the budget structures.
Using Personnel Cost Planning
Assigning the budget amounts takes place using the ‘Budget Details’ tab. We can import it from PCP, use custom import using the BAdI, Roll-up values or change the existing values with a percentage change.
Figure 4.44 Assign budget amounts
Note: Budgeting in R/3
Though not recommended, you can do Budget maintenance through R/3 too. You can use the transactions HRCMP0011, HRCMP0012 and HRCMP0013 to create, change and display budget structures and budget amounts.
Configuration (to be removed. It will be covered at the end)
4.2.2 Check & release budget
Once the budget amounts have been assigned and before the managers start awarding their people, it’s required that the budget be checked for consistency and then released.
Figure 4.45 Check & Release the budget
Releasing the budget
It’s important to release the budget before allowing the managers to start awarding. If the budget is not released and the managers start awarding then it will cause inconsistency in the database and it’s very difficult to fix the problem. By default, the system doesn’t stop managers from awarding but does give a warning message stating that there is no budget assignment.
When we try to release budget just for the ‘Ft Worth Sales’, the system gives a message that it can’t be done and the entire budget structure has to be released. In our case we have to release it from the Executive Board-
US.
Figure 4.46 Releasing the budget for entire structure only
The budget can be reset to planning if the money has not yet been distributed.
Figure 4.47 Reset the budget to planning again
The Budget unit ID 50039053 has been reset along with the budget structure under it.
There are instances when an employee might move from one organization to another before or after the award has been assigned but before it’s been paid out. In this case, it still possible to re-assign the money from one organizational unit to another. This is a requirement in many companies so that the manager of the organizational unit have their budgets reflected correctly. The sending manager gives up the budget for that employee and the receiving manager gets the budget. This helps in ensuring that the receiving manager doesn’t run short of money due to an additional employee under their hierarchy. At the same time, the sending manager doesn’t have extra money since there is one less employee under them.
Figure 4.48 Budget reassignment
Figure 4.49 Budget reassignment process
The budget reassignment process is a 4 step process. First we chose the sending org unit, then we chose the receiving org unit, then we enter the amount that needs to be reassigned, then we review and approve the change.
We will first select the organizational unit (not the budget unit) that the transferring employee belongs to currently. Then we click ‘Next Step’
Figure 4.50 Selecting the sending organizational unit
We will now select the receiving organizational unit that the employee will belong to. Click ‘next step’
Figure 4.51 Selecting the receiving organizational unit
You would then assign the new budget amounts and click ‘Reassign’. You can reassign existing budget or spent budget.
Figure 4.52 Reassign budget
Finally you will see the change that can be saved by click ‘Save’ on the top.
Figure 4.53 Reviewing the change of the budget
All this is happening in the front-end but there are some settings that need to be configured before all these can happen.
4.2.3 Configuration
In this section we will review the budget configuration. The budget configuration needs to be reviewed every year to ensure that the right budget period is available to carry out the compensation plans.
Figure 4.54 Budgeting Configuration
The budgeting configuration has limited options. Budgeting is more data intensive than configuration intensive. It also provides an add-in to initialize budget values.
Reference currency:
This is important to convert data into single reference currency. It is useful when the budget are managed in different currencies but requires conversion into single currency viz currency of corporate HQ. At any given point in time there can only be single reference currency for compensation management.
Figure 4.55 Reference currency
Budget types
Budget types allow allocation of different budgets to the compensation programs. They are monetary or units based and they might be available for allocation or not. When money has to be distributed, it’s assigned as ‘Monetary Budget”. When number of stocks, options etc… has to be distributed, we will not check this option. When we are ready to start allocation of budget amount/ numbers, ‘Allocation” flag has to be checked. Different budgets are created for different plans. One budget can be assigned to multiple plans but one plan can only be assigned to one budget.
Figure 4.56 Budget types
Global Impact for languages:
The budget types can be translated in multiple languages so that the same can be used in multiple languages. This allows the same type of budget to be used in multiple countries easily.
Figure 4.57 Budget type description in different languages
The critical setting for budget is to setup the budget period. This period defines the period for which a budget is spent. It’s setup in conjunction with the compensation plan and the budget type.
Figure 4.58 Budget Periods
The budget period is the period during which you distribute the salary increases or distribute the bonus/shares.
The key date refers to the date on which you want currency conversion to take place in case you have budgets in multiple currencies. If it’s left blank then the currency conversion will take place when you create the budget units.
System Switches for budgeting
There are 2 system switches for budgeting that is applicable across the system and have to be decided irrespective of compensation plans.
Figure 4.59 System switches for budgeting
VI HRECM- BDGRA- Reassignment of budget allowed after the budget has been spent.
In this field, you determine whether you can reassign budgets or budget amounts.
Possible entries | Explanation |
' ' (empty) | If this field is empty, the system checks if any part of this budget has already been spent. If so, you cannot reassign this budget. |
'X' | If this field is checked, this means that you can reassign this budget, even if part of it has already been spent. |
VII PCOMP-MGBUD- Budget of line manager. If the budget of the line manager is assigned to org units they belong to
Possible entries | Explanation |
' ' (empty) | The budget of the line manager's organizational unit is used. If there is no budget, the budget of the next highest organizational unit (for which a budget exists), is used. That is, the line manager of the organizational unit must be paid from the same budget as the other employees in the organizational unit. Example Line manager 1 executes compensation administration for line manager 2, who has a budget available for his/her organizational unit. The budget for the adjustment amount comes from the organizational unit of line manager 2; that is, budget 2. |
'X' | The budget of the next highest organizational unit (for which a budget is available) is used. In other words, the line manager of an organizational unit is paid from a different budget to the other employees in the organizational unit. Example Line manager 1 executes compensation administration for line manager 2, who has a budget available for his/her organizational unit. The budget for the adjustment amount comes from line manager 1's organizational unit; that is, budget 1. |
Business Add-Ins to enable budget load
ECM also provides for business add-ins to upload your enterprise's initial budget values from another source (for example, spreadsheet or database), into the Budget Values infotype (1520). The values can be amounts for monetary budgets or numbers for stock based budgets.
You need to add your own code changes in order to upload these budget values.
Figure 4.60 BAdI for initializing budget values
The import parameters defines the budget that needs to be be updated. The export parameters define the new budget values for the budget.
Example
Method: DETERMINE_BUDGET_VALUES
Import parameters | Meaning |
plvar | Plan variant |
butyp | Budget type |
begda | Begin date of budget |
endda | End date of budget |
kcurr | Monetary budget indicator |
budot | Object type of budget unit, usually 'BU' |
budid | Budget unit id |
oldam | Old budget amount |
oldcu | Old budget currency |
oldno | Old budget number |
oldsu | Old budget stock unit |
Export parameters | Meaning |
newam | New budget amount |
newcu | New budget currency |
newno | New budget number |
newsu | New budget stock unit |
Hints:
If parameter kcurr is set to 'X', this is a monetary budget. Therefore you can only return an amount and a currency. If a number or stock unit is returned, SAP will generate an error.
If parameter kcurr is set to ' ', then it is a non-monetary budget and you can only return a number and a stock unit. If an amount or stock unit is returned, SAP will generate an error. When returning an amount or number, you must also return the currency and the stock unit respectively.
Using R/3
It’s expected that we would use the portal to do everything in ECM. But the underlying structure that’s been used for budgeting is the same one that was used for the old compensation management, we could use R/3 functions for budgeting. This is not the case for Job pricing where it’s not really possible to use R/3 effectively.
In case you want to manage some aspects of budgeting from R/3, use can use the following transaction PECM_GENERATE_BUDGET
Figure 4.61 Creating budget in R/3
We can also use the Transaction PECM_INIT_BUDGET, to initialize the budget from Personnel cost planning.
Figure 4.62 Getting budgets from Personnel Cost Planning
We can use more detailed selection to upload from Personnel Cost Planning.
Figure 4.63 Using different parameters to get the right PCP plan
We can Transaction PECM_DISPLAY_BUDGETS to display the status of the budget planned and budget used.
Figure 4.64 Displaying the budget units with budget & utilization reporting
Sometimes its more helpful to view the budget structure along with the organizational structure they are financing.
Figure 4.65 Displaying the budget units with the attached org units along with budget and utilization.
We can use the Transaction PECM_CHK_BUDGET, to check and release the budget.
Figure 4.66 Checking and releasing budgets from R/3
We can use the Transaction PECM_CONV_BDG_STKUN, to convert the stock units e.g. the conversion might be triggered due to stock split in the company.
Figure 4.67 Converting budget from old stock units to new ones.
4.3 Summary
In this chapter we covered the different aspects of budgeting. Budgeting is a key process. We reviewed different steps in managing the budget and configuration for budgeting. We also reviewed the flexibility in terms of currencies supported by budgeting.
