Definition of Budget Hierarchy
This process describes how you define and maintain a budget hierarchy for an overall budget that you want to set up in HR Funds and Position Management.
The budget hierarchy is used to determine what the individualbudget structure elements are and to show how they are linked hierarchically. Defining a budget hierarchy is the first step in setting up an overall budget.
Budgets (either monetary or FTE budgets) are assigned to the budget structure elements in the budget hierarchy. These budgets can then be used for the purposes of financing persons or positions.
The budget of a budget structure element is the funding that can be used for financing the persons or positions in an overall budget.
In this process, you define the basic structure of the overall budget. This process does not, however, involve assigning budgets to budget structure elements.
In Customizing, you must have made the necessary settings in the section entitled Overall Budget (especially the step Define Budget Structure Element Types). You can then define the budget hierarchy to suit the individual needs of your organization.
The followingbudget hierarchy is used in the examples given in this documentation.
You have defined a budget hierarchy with budget structure elements to which you canassign budgets.
If the overall budget already exists, you can copy the budget hierarchy over to the subsequent financial year by working through the process entitledCarrying Forward of and Overall Budget. In this case, you do not have to re-enter the budget structure elements that are already contained in the budget hierarchy.
You can also create
See also:Defining a Budget Hierarchy Maintaining a Budget Hierarchy Budget Structure Element