Planning and Budgeting of Investment Programs 

Purpose

The most important task of an investment program is to manage planned costs and approved budget values for a given time period.

Budget values are different from plan values in regard to how binding they are. In the planning phase, you have to estimate the costs for a program position as exactly as possible. In the approval phase, the funds are supplied in the form of the budget, which is thereby more binding.

You can plan costs for an investment program either directly on the program positions, or by rolling up planned costs from the measures and appropriation requests assigned to the measures.

Prerequisites

You have to have defined planning profiles and budget profiles in Customizing. You assign a planning profile and a budget profile to each program type. This allows you to control planning and budgeting differently for each program type.

You have to have created a program definition and program positions, and also have assigned measures and appropriation requests to the program positions.

See also:

Implementation Guide (IMG): Investment Programs ® Planning in Program ® Cost Planning ® Maintain Planning Profiles or Budgeting in Program ® Maintain Budget Profiles

Creating the Program Definition

Creating the Program Positions and Structures

Process Flow

  1. You enter plan values at the level of measures and appropriation requests.
  2. You roll up the plan values from the bottom up to the investment program positions.

    3. You can plan different values on different program versions.

  3. You distribute budget top-down to the individual program positions and measures.
  4. When availability control is active, the system can also ensure that the amount of budget distributed to the individual measures is never higher than the amount of budget on the program positions.
  5. Using the supplement and return functions, you can make necessary updates to an existing original budget.
  6. If you want your investment program to be valid for more than one approval year, you use the Fiscal Year Change function. It copies the program structure and carries the values forward into the next fiscal year.

The values for measures that were not closed in one year are forwarded at the end of the approval year to another investment program with the same name in the following approval year. This applies to those measures that have Released status and are not yet closed. The plan and budget values are then displayed in a separate value category on the new investment program. The budget, therefore, does not necessarily have to be entirely used by approved measures in the approval year. It can also be used in later years.

See also:

Cost Planning on the Investment Program

Budgeting of Investment Programs

Versions for Planning

Supplements and Returns

Fiscal Year Change

Result

You can get an overview of your planned and budgeted investments in the Information System of Investment Management.