Budget Hierarchy Creation (SAP Library - HR Funds and Position Management (PA-PM))

Budget Hierarchy Creation

Purpose

This process describes how to define and edit a budget hierarchy.

The budget hierarchy is used to define the budget structure elements and to show how they are linked hierarchically. The basic structure of the overall HR Funds and Position Management budget is based on the budget hierarchy generated in the R/3 Funds Management component.

The budget structure elements contained within the overall budget hierarchy are assigned budgets for the purposes of financing persons or positions.

You can break down this Funds Management budget hierarchy further for HR Funds and Position Management by creating budget structure elements for personnel expenditures.

In other words, the overall HR Funds and Position Management budget hierarchy can be seen as more detailed view of the budgets for personnel expenditures managed in Funds Management.

The structure of the overall budget is defined in this process. This process does not, however, involve assigning budgets for personnel expenditures to budget structure elements.

Prerequisites

In Customizing for HR Funds and Position Management, you must already have

Defined financial years and a budget currency (step: Overall Budget ® Overall Budget Basics)

Made all the necessary settings in the step Overall Budget ® Defining Budget Structure Elements (especially the step Define Budget Structure Element Types) and in this way tailored the budget hierarchy to meet your own organizational requirements

Made all the necessary settings in the step Integration ® Integration with Funds Management

In Customizing for Funds Management, you must have made the necessary settings in the section Actual and Commitment Update/Integration ® Integration ® Integration with HR Funds and Position Management.

Process Flow

You generate the budget hierarchy for HR Funds and Position Management in Funds Management. You can generate the budget structure elements for individual funds or for several funds.

The budget structure elements that are generated for HR Funds and Position Management contain the monetary Funds Management budgets for personnel expenditures.

You break down this budget hierarchy further for HR Funds and Position Management by creating budget structure elements for personnel expenditures.

If required, you can specify additional information on the budget structure elements (e.g. who is responsible for a budget, the external budget number and a plain text description).

You can also assign the budget structure elements and their budgets to employee groups and subgroups, or to organizational units and positions (via earmarkings).

Result

You have defined an overall budget hierarchy for HR Funds and Position Management.

You can now distribute the budgets that come from Funds Management among the budget structure elements created for personnel expenditures.

You can then allocate the budgets of these budget structure elements for the purposes of financing persons or positions.

Generating Budget Structure Elements for Several Funds

Setting Up Budget Structure Elements for Personnel Expenditure

Budget Structure Element