GM Budgeting: Revenues Increasing the Budget (RIB) 

Purpose

Often, budgets are made available for expenditure only after the corresponding revenue has been recognized. This is true for the already approved budget as well as for additional portions of the budget that were not part of the original approved or voted budget. For such requirements, Revenues Increasing the Budget (RIB) enable you to define rules for when and how such budget increases should take place.

In order to use Revenues Increasing the Budget, you must define RIB calculation formulas and RIB rules for RIB objects:

●     A RIB calculation formula is used to calculate the amount (“RIB amount”) available in the RIB process. This is the amount posted in RIB documents that increases the budget of receiving budget addresses.

●     A RIB rule contains all definitions necessary for increasing the budget of specified expenditure budget addresses from specific revenues. It is assigned to a RIB object and comprises, amongst others, the RIB calculation formula and the receiving budget addresses.

●     A RIB object is an aggregation object for the application of a RIB calculation formula. The RIB object is derived from a revenues budget address using a derivation strategy defined in Customizing.

RIB objects are created for the purpose of bundling revenues to be used for increasing the budget. After the bundling, the “RIB amount” obtained by applying a RIB rule can be distributed to different expenditure budget addresses, as shown in the graphic below.

Implementation Considerations

If your organization has revenues that can be used to increase the budget in Grants Management (GM), carry out the Customizing activities in the Implementation Guide (IMG) under Public Sector Management  ® Grants Management ® Grantee Management ® Budgeting and Availability Control  ® Revenues Increasing the Budget:

●     Define Derivation Strategy for GM RIB

●     Maintain Calculation Rule for GM RIB

●     Maintain Derivation Strategy for Rule Generation

After changing the derivation strategy for RIB objects, you must reconstruct the index that assigns budget addresses to RIB objects using transaction GMRBIDXREC.

Integration

The RIB feature is fully integrated with Grantee Management. FI-GL and Accounts Receivable are also integrated.

Features

You can use RIB to choose between different phases of revenue recognition (invoice or actual cash received in bank account). The expenditure budget is then increased in the budget address according to the stipulated RIB rules.

In the RIB calculation formulas defined in Customizing, you can also set lower and upper thresholds for the increase, requiring a base revenue before the increase starts and limiting it to a maximum amount of increase. You have the option of defining -RIB rules that use the surplus amount exceeding the upper threshold to increase the expenditure budget of an assigned surplus budget address. If you do this, the grant in the surplus budget address should be the same one as in the RIB object.

In GM-GTE, SAP provides an automated totals-based distribution procedure for increasing the expenditure budget using revenues intended for a specific purpose.