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 orrevenue cover groups :

  • 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.

  • A revenue cover group is a group of revenue budget addresses. It presents an alternative to RIB objects for creating RIB rules. Before you can create a RIB rule based on a revenue cover group, you must first create the revenue cover group.

RIB objects and revenue cover groups 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.

One revenue budget address may not contribute to a RIB object and to a revenue cover group at the same time but must be assigned to one or the other.

One, and only one, member of a revenue cover group is given the role RIB source address and it functions as the source address in budget documents using the RIB process.

Implementation Considerations

If your organization has revenues that can be used to increase the budget, carry out the Customizing activities in Start of the navigation path Funds Management Government Next navigation step   BCS Next navigation step   BCS Budgeting Next navigation step   Control Budgeting Flow Next navigation step Revenues Increasing the Budget: End of the navigation path

  • Activate Budget Memos for RIB

  • Define Derivation Strategy for RIB objects

  • Maintain Calculation Formulas for RIB

  • Maintain Derivation Strategy for Rule Generation

After carrying out the above Customizing activities, proceed as follows:

  1. If you want to use budget memos with RIB rules, you must first activate this function in Customizing.

  2. If you want to use RIB rules based on revenue cover groups or RIB rules with call procedure, then you must activate cover eligibility for your organization. Activate the use of RIB call procedure in Customizing for Public Sector Management under Funds Management Government -> Budget Control System (BCS) -> Budgeting -> Control Budgeting Flow → Cover Eligibility -> Activate Cover Eligibility

  3. You can create and edit RIB rules using the mass generation of RIB rules (transaction FMRBGENMD) or transaction FMRBRULE for editing single RIB rules. If you want to create RIB rules with call procedure, then you must also create automatic cover groups (automatic CE rules) and assign them to the RIB rules with call procedure.

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

  5. After creating RIB rules or changing existing RIB rules, you must reinitialize the RIB ledger using transaction FMRBREINIT if application data already exists.

Integration

The functionality of Revenues Increasing the Budget is fully integrated with the Budget Control System and SAP Public Sector Funds Management. Furthermore, FI-GL and Accounts Receivable are also integrated.

Features

Using Revenues Increasing the Budget, you can choose between different phases of revenue recognition (commitment from forecast of revenue or sales order, invoice, or true 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. As an option, you can define RIB rules that use the surplus amount exceeding the upper threshold to increase the expenditure budget of an assigned surplus budget address.

In BCS, SAP provides an automated totals-based distribution procedure for increasing the expenditure budget and a call procedure for increasing the consumable budget in automatic cover groups.

For RIB rules with distribution procedure, you directly increase the expenditure budget. Such rules allow you to automatically increase and distribute the expenditure budget in a mass process, transaction FMMPRBB.

RIB rules with call procedure are used to virtually increase the consumable budget in automatic cover groups. In doing so, availability control may use the additional budget resources provided by such RIB rules without the need to first increase the expenditure budget after the creation of budget documents.

Both types of RIB rules may also be used to manually increase the expenditure budget by creating budget entry documents in the Budgeting Workbench (transaction FMBB) using the budgeting process “Revenues Increasing the Budget”.