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 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.

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 of the budget structure element in question is not being required to provide more funds than it can supply.
  6. You can display a where-used list to see where else the budget is used (application of budget).
  7. 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.

 

See also:

Allocating Budgets