Planning and Budgeting of Investment Programs
Purpose
The most important task of an investment program is to manage planned costs and approved budget values for a given time period.
Budget values are different from plan values in regard to how binding they are. In the planning phase, you have to estimate the costs for a program position as exactly as possible. In the approval phase, the funds are supplied in the form of the budget, which is thereby more binding.
You can plan costs for an investment program either directly on the program positions, or by rolling up planned costs from the measures and appropriation requests assigned to the measures.
Prerequisites
You have to have defined planning profiles and budget profiles in Customizing. You assign a planning profile and a budget profile to each program type. This allows you to control planning and budgeting differently for each program type.
You have to have created a program definition and program positions, and also have assigned measures and appropriation requests to the program positions.
See also:
Implementation Guide (IMG)
: Investment Programs
Planning in Program
Cost Planning
Maintain Planning Profiles
or
Budgeting in Program
Define Budget Profiles for Investment Programs
Process Flow
You enter plan values at the level of measures and appropriation requests.
You roll up the plan values from the bottom up to the investment program positions.
You can plan different values on different program versions.
You distribute budget top-down to the individual program positions and measures.
Using budget distribution, the system can also ensure that the amount of budget distributed to the individual measures is never higher than the amount of budget on the program positions.
Using the supplement and return functions, you can make necessary updates to an existing original budget.
If the investment program is valid for more than one approval year, then you can use the fiscal year change functions in IM to copy the investment program structure and carry forward the values of measures and appropriation requests that are not yet closed.
When you use the
Open New Approval Year – Repeat Run
function, the carryforward of measures and appropriation requests and their values is statistical only. The carryforward is needed here only for the purposes of reporting.
When you use the
Closing the Old Approval Year
function, the measures and appropriation requests that are carried forward are actually operative in the new investment program. The operative plan and budget values of the new investment program are increased consistently by the amounts carried forward.
See also:
Cost Planning on the Investment Program
Result
You can get an overview of your planned and budgeted investments in the Information System of Investment Management.