Example: Budget Structure for Local Budgeting

  1. Definition of Budget Structure Templates

  2. In the first step, you create the budget structure template (BS templates). Template T1 contains top commitment item I0 and template T2 contains commitment items I0 , I1 , I2 and I3 . All commitment items within the templates are flagged as budget objects.

  3. Definition of BS with BS Templates

  4. In a second step, you assign the templates to the funds centers when defining the budget structure.

    Here Template T1 is assigned to top funds center F0 and template T2 is assigned to funds center F0 and subordinate funds centers F1 and F2 . When you generate the budget structure, the system then automatically defines the budget objects in the respective funds centers for all commitment items that are contained in the templates.

  5. Budget Hierarchy: Local Budget Allocation

The system sets up the budget hierarchy in line with the budget structure. In accordance with template assignment, only top commitment item I0 can be budgeted in top funds center F0 . You can then distribute the budget from F0/I0 to subordinate funds centers F1 and F2 and their top commitment item I0 . You then distribute the budget within funds centers F1 and F2 to subordinate commitment items I1 and I2 and I3 .