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

Budget Assignments

Purpose

This process involves assigning budgets to the budget structure elements you have created.

You take a budget hierarchy, which you defined in the process Definition of Budget Hierarchy, and assign the appropriate budgets (either monetary or full-time equivalent) to the individual budget structure elements contained in this hierarchy. In the case of FTE budgets, assigning budgets involves assigning the full-time equivalents, and also classifying the budget (i.e. assigning the appropriate pay scale characteristics).

Budget assignment provides a basis for executing the budget (e.g. for financing persons or positions).

Prerequisites

You must have made the following Customizing settings for HR Funds and Position Management:

In the Customizing step Overall Budget ® Defining Budget Structure Element Types ® Define Budget Structure Element Types, you specified how every budget structure element type in your budget hierarchy should be classified (i.e. whether the budget of a specific budget structure element should be defined in monetary amounts or full-time equivalents, and whether it is possible to allocate the budget of this budget structure element).
If you want to work with FTE budgets, you must have defined the default values to be used for the various pay scale groups and special pay scale groups (step: Overall Budget ® Pay Scales and Pay Scale Classifications ® Defining Default Values).

The monetary pay scale classification (default value amount) stored for FTE budgets is always the average pay of the pay scale group in question. A person’s actual pay is not used for classifying budgets.

You must also have defined a budget hierarchy (i.e. created individual budget structure elements), and the overall budget must have the budget status Proposed or Being revised.

If you create a new overall budget, or carry forward an existing budget, it is automatically given the status Proposed.

Process Flow

You can use various search functions in the SAP System to help you find the budget structure element to which you wish to assign a budget.

There are two ways of assigning budget: top-down and bottom-up.

The top-down method allows you to display the budget still available, and to allocate this budget to lower-level budget structure elements.

In the bottom-up method, the budgets at the lowest level of the budget hierarchy are processed first. The available budget for the higher-level budget structure element is flagged as Exceeded and can be assigned accordingly.

A combination of both methods is also possible.

The following budget assignment scenarios are possible:

If the budget is a monetary budget, enter the appropriate monetary amount as the original budget.
If the budget is a full-time-equivalent budget (FTE budget), enter the original budget as FTEs.

In all cases, the SAP System summarizes the budgets assigned at the various levels of the budget hierarchy. Any FTEs are converted into monetary amounts.

If necessary, you can change, copy, or delete budget structure elements after they have been assigned budgets.

Result

You have assigned budgets to your budget structure elements. For information and monitoring purposes, you can use the Display: Overall Budget function to display and print out your overall budget and the individual budgets in it. You can also start a consistency check.

Once the budget status has been changed, you can start executing the overall budget (i.e. financing persons or positions with the budgets assigned to the budget structure elements).

See also:

Top-Down Budget Assignment

Bottom-Up Budget Assignment