Example: Budget Structure for Central Budgeting

  1. Definition of Budget Structure Templates

  2. In the first step, you create the budget structure template (BS template). Template T1 contains all commitment items, top commitment item I0 , and subordinate commitment items I1, I2 and I3 . Template T2 contains commitment items 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 BS 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 contained in the templates.

  5. Budget Hierarchy: Central Budget Allocation

The system sets up the budget hierarchy corresponding to the budget structure. In accordance with template assignment, all commitment items can be budgeted in top funds center F0 . Only subordinate commitment items I1, I2 and I3 can be budgeted in the subordinate funds centers.

You can now firstly distribute the budget from top commitment item I0 to subordinate commitment items I1, I2 and I3 within top funds center F0 . You then distribute the budget from subordinate commitment items I1 , I2, and I3 to I1, I2 and I3 of subordinate funds centers F1 and F2 .