Example: Budget Structure for Local Budgeting 

Defining Commitment Item Groups

In the first step, you create the commitment item groups. Here Group G1 contains top commitment item F0 and Group G2 contains commitment items F0, F1, F2 and F3. All commitment items within the groups are flagged as budget objects.

Defining the Budget Structure Using Commitment Item Groups

In a second step, you assign the commitment item groups to the funds centers when defining the budget structure.

Here Group G1 is assigned to top funds center C0 and Group G2 is assigned to funds center C0 and subordinate funds centers C1 and C2. When you generate the budget structure, the system then automatically defines the budget objects in the respective funds centers for all commitment items that are contained in the groups.

Budget Hierarchy: Local Budget Allocation

The system sets up the budget hierarchy in line with the budget structure. In accordance with group assignment, only top commitment item F0 can be budgeted in top funds center S0. You can then distribute the budget from S0/F0 to subordinate funds centers S1 and S2 and their top commitment item F0. You then distribute the budget within funds centers S1 and S2 to subordinate commitment items F1 and F2 and F3.