Handling of Investment Programs 

Purpose

You use the Investment Programs scenario for the management of investment budgets for multiple measures, throughout your whole enterprise. The budget for the investment programs includes many individual measures. The individual measures can be internal orders, projects or maintenance orders. Therefore, you may need to use the Plant Maintenance area in addition to the Investments area.

Planning, managing and monitoring an enterprise-wide budget using an investment program can augment planning and budgeting on the level of individual measures. The functions of investment programs, therefore, are particularly suited to the needs of enterprises that create an investment plan and a budget annually, and wish to monitor the budget as a whole, rather than just at the level of individual measures.

The investment program consists of individual program positions, which are connected by a hierarchical structure. You can define this hierarchy in any way based on management accounting criterion. For example, the hierarchy can correspond to the organizational structure of your enterprise.

The scenario involves the initial structuring of an investment program, the creation of plan values, and the conversion of the plan values into an approved budget. You always have to define the investment program with an approval year. Therefore, the scenario also includes the fiscal year change to the investment program in the next fiscal year.

In this context, approval year means that the program has values that were approved in this year (but not necessarily for this year only).

Prerequisites

You must be using the basic functions of the CO and PS components.

Process Flow

  1. You create your investment program for the first time, and structure it according to your management accounting requirements. You assign measures and appropriation requests to the end nodes (lowest hierarchy nodes) of this hierarchical structure.
  2. You plan from the bottom up, as exactly as possible, for the individual measures and appropriation requests. Later, you roll up the plan values of the individual measures and appropriation requests on the investment program. If needed, you can then increase or decrease these values across the board.
  3. In the approval phase, the funds are supplied from the top down, in the form of the budget, to the individual end nodes of the investment program. The approved measures receive their budget from the investment program positions directly above them in the hierarchy. However, if you want to budget manually at the measure level, you can compare the budget values entered with the budget values on the program position level. You make this comparison in reporting.
  4. You can report on the investment program and its measures and appropriation requests in the IM Information System. You can generate reports regarding plan values, budgets, actual values and commitments.
  5. You carry out the fiscal year change. As part of the fiscal year change, you forward the budget values distributed to measures of the investment program to the following fiscal year. At the same time, you can copy the structure of the investment program to the new approval year.
    You also forward plan values from planned investments that take the form of appropriation requests.

Result

Planning and approval of the investment budget was carried out for one approval year.