Assignment of Budget

Assignment of Budget

Purpose

This process describes how you assign budgets to the budget structure elements that you have created.

You take a budget hierarchy, which you defined in the process Definition of Budget Hierarchy, and assign budgets (either monetary or FTE budgets) to the individual budget structure elements contained in this hierarchy. In the case of FTE budgets, assigning budgets involves assigning the full-time equivalents, and also classifying the budget (i.e. assigning the appropriate pay scale characteristics).

Budget assignment provides a basis for executing the overall budget (for example, for the purposes of financing persons or positions).

Prerequisites

You must have made the following Customizing settings for HR Funds and Position Management:

In the Customizing step Overall budget ® Budget structure element types ® Define budget structure element types, you must have specified how every budget structure element type in your budget hierarchy should be classified (i.e. whether the budget of a specific budget structure element should be defined in monetary amounts or full-time equivalents, and whether it is possible to allocate the budget of this budget structure element or if the budget structure element in question is merely a summarization item).
In the Customizing step Overall Budget ® Define default values, you must have specified the default values to be used for the various pay scale groups and special pay scale groups if you intend to define FTE budgets in your overall budget.

The monetary pay scale classification stored for FTE budgets is always the planned average pay of the corresponding pay scale grouping. The actual pay that a person receives is not used for classifying budgets.

You must also have defined a budget hierarchy (i.e. created individual budget structure elements), and the overall budget must have the budget status Proposed or Being revised.

If you create a new overall budget, or carry forward an existing budget, it is automatically given the status Proposed.

Process Flow

You can use various search functions in the R/3 System to help you find the budget structure element to which you wish to assign a budget.

There are two types of budget assignment (funds allocation): top-down and bottom-up.

The top-down method allows you to display the budget still available, and to allocate this budget to lower-level budget structure elements.

In the bottom-up method, the budgets at the lowest level of the budget hierarchy are maintained first. The available budget for the higher-level budget structure element is flagged as Exceeded and can be assigned accordingly.

A combination of both methods is also possible.

The following budget assignment scenarios are possible:

- If the budget is a monetary budget, enter the appropriate monetary amount as the original budget.

- If the budget is a full-time-equivalent budget (FTE budget), enter the appropriate number of FTEs as the original budget.

In all cases, the R/3 System summarizes the budgets assigned over the various levels of the budget hierarchy. FTEs are converted into monetary amounts.

If necessary, you can change, copy, or delete budget structure elements after they have been assigned a budget.

Result

You have assigned budgets to your budget structure elements. You can use the function Display: Overall Budget to display different views of the overall budget and the individual budgets assigned to it, to print out this display, and also to run an additional consistency check.

Once the budget status has been changed, you can start executing the overall budget (i.e. financing persons or positions with the budgets assigned to the budget structure elements).

See also:

Top-Down Budget Assignment

Bottom-Up Budget Assignment