Budget

 

Planned value for sales deductions based on price reductions scheduled in price planning. Price increases do not affect the budget therefore no budget is released.

 

You plan budgets for price planning in SAP Strategic Enterprise Management (SAP SEM) and SAP BI. You can use different budgets for the rule-based markdown control, promotion, and manual price change planning processes, or you can use the same budget for all planning process.

The system calculates the value of the sales deduction from the price difference for the current sales price and the sales quantity. In the planning phase, the system uses the current stock for manual price plans and markdown price plans. For promotion price plans, you enter a planned quantity. When you activate price plans, the system updates the budgets with the current stock.

In the work area in the Price Planning Workbench (PPW), you can display the effects of price reductions on the relevant budget. A price plan can be linked to several budgets for different article groupings and periods. The Budget Monitor provides you with an overview of all the budgets involved.

To highlight the use of budgets in the different stages of processing for price plans, the system distinguishes between different budget values:

  • Planned budget

    The budget defined in planning as being available for different budget keys (article groupings and periods) and planning processes.

  • Exhausted budget

    The budget that is posted as having been used for each budget key when markdown price plans and manual price plans are activated.

  • Blocked budget

    The budget that is reserved for each budget key when activating promotion price plans.

  • Cumulative budget

    The budget for each budget key that results from the difference between the planned budget and the exhausted budget at period-end closing. The cumulative budget can be positive or negative.

    For more information, see Calculating the Cumulative Budget.

  • Committed budget

    The budget expected to be used for each budget key in the planning phase for price plans. Depending on the processing status of price plans, the following budget planning levels apply:

    • Commitment level 1: Budget consumption for a budget key that results from the creation of a price plan using the current price planning.

    • Commitment level 2: Planned future budget consumption for a budget key that results from price plans with the statuses In Process and Resubmit.

    • Commitment level 3: Planned future budget consumption for a budget key that results from price plans with the statuses Conditions Created and Released.

  • Available budget

    Available budget = planned budget + cumulative budget – exhausted budget – blocked budget – commitment level 1,2,3

Integration

If you want to use the budget-managed view in the Budget Monitor in the PPW, you need to make the settings for budget planning in SAP BI and SAP ECC.

More Information

Budget Monitor