Budget Allocation 

Purpose

This process describes how you allocate the budget of a budget structure element in your budget hierarchy for the purposes of financing a person or a position.

The budget allocation process is closely linked to the Financing process (since in both processes, budget is assigned to cover personnel expenditures).

However, in the Budget Allocation process, funding is supplied using a budget structure element as the point of departure, whereas a position or person is the point of departure in the Financing process.

You can only use the Budget Allocation process for allocatable budget structure elements.

The budget structure elements in HR Funds and Position Management correspond to a combination of fund, funds center and commitment item in an FM area (Funds Management account assignment) in Funds Management.

If you allocate the budget of a budget structure element for the purpose of financing a person or position, the system determines the financing required for the object you are trying to finance, and creates a funds reservation for the corresponding Funds Management account assignment.

The table below shows the various ways in which the system can determine the financing required. In Customizing, you can determine how the financing required should be determined.

 

Financing Object

Determine Financing Required Using

Default Value

Payroll Simulation

Person

X

X

Staffed position

X

X

Unstaffed position

X

  

 

Prerequisites

You must have defined a budget hierarchy with budget structure elements and budgets, an organizational structure with positions, HR master data, and (if applicable) relationships between positions and HR master data (staffing details).

The overall budget must have the budget status Released, Released provisionally, or Being revised.

You must also have specified how the financing required for specific employee groupings is to be determined (step: Overall Budget ® Settings for Financing Persons/Positions ® Determining Financing Requirements).

Process Flow

  1. You use the search functions available in the system to find the budget structure element that is to be used for financing.
  2. Select the object (person or position) that you want to finance.
  3. The system displays the financing status for the availability period in question (represented by means of the traffic-light icons / / ).
  4. You assign the budget required for financing the person/position, or you use the Financing Wizard () to generate proposed values for the financing assignment.
  5. If you create or change a financing relationship, the system performs an availability check. This is to ensure that the budget is not being asked to provide more funds than it can supply.
  6. Depending on the type of financing involved, a commitment or precommitment is created in Funds Management.
  7. You can display a where-used list to see where else the budget is used (application of budget).
  8. The system performs a plausibility check for the financing. Depending on the outcome of this check (and any warnings that may be issued), the system saves the data.