Creating a Budget Proposal 

Purpose

You want to perform a budget planning for plant maintenance and customer service and to create a budget proposal.

Prerequisites

You have prepared the budget planning for plant maintenance and customer service. For more information, see Preparing the Budget Planning

Process Flow for Manager

The manager plans the strategic budget for his area and sends this budget proposal to the responsible maintenance planner (top-down budgeting process).

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       1.      You call up the Budget Planning for Plant Maintenance and Customer Service via the Web UI-link and choose Budget Distribution on the start page.

       2.      You define a planning version for the budget specification (for example, a minimum version, normal version, or maximum version).

       3.      You open the total overview.

This gives you a graphic and a tabular overview of the budget proposal.

       4.      You check the settings under Functions ® Selection Criteria.

       5.         You can draw on historic data as the basis for your specification for the budget planning. You determine this via BW reports.

In the BW Reports menu, choose the reports that are suitable for you and copy the data in your specification to the budget planning.

       6.      Complete your budget specifications for each budget group (that is, for each maintenance planner) and for each budget category.

       7.      You copy the data of your budget specification into another planning version, if necessary, to create further budget specifications.

You can find the copy or delete functions for this under Functions ® Functions.

       8.      You decide on a version and use Send Budget to send this as budget specification to the responsible planner.

       9.      After the planner has returned your budget specification, you can reject the budget proposal if necessary.

   10.      Various BW Reports are available for evaluation purposes. These reports include a detailed itemization of the budget planning, comparisons of budget proposals with historic actual or planned costs, as well as a budget check for the current year.

Process Flow for Planner

The planner plans the budget on the basis of historic or simulated data (bottom-up budgeting process). It is possible to create multiple versions of budget proposals simultaneously (for example, a minimum planning, a normal planning, or a maximum planning). After the planning, the planner decides on a version and sends this to his or her manager for approval.

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       1.      You call up the Budget Planning for Plant Maintenance and Customer Service via the Web UI-link and choose Budget Planning on the start page.

       2.      You define a planning version for the budget planning (for example, a minimum version, normal version, or maximum version). You select a cost center.

       3.      You open the total overview.

This gives you a graphic and a tabular overview of the budget proposal.  You also see the manager’s budget specification.

       4.      You check the settings under Functions ® Selection Criteria.

       5.      You have the following options to plan your budget:

¡        With the history-based budgeting method

¡        With the zero-based budgeting method

¡        You determine historic data via BW reports.

In the BW Reports menu in the Web UI, choose the reports that are suitable for you and copy the data to the budget planning.

You determine the data basis for the budget planning using various functions in the Web UI (such as, Simulated Costs Copy, Actual Costs Copy).

       6.      Create New Budget Proposal

You complete or change your new budget proposals for each budget category and, if necessary, calculate surcharges or discounts.

¡        History-Based Budgeting Method

The history-based budgeting method is based on the actual costs of the selected cost center of the previous budgeting year.

§         You copy the actual costs of the previous budgeting year.

§         You can also create ad hoc data under Ad hoc (Hist.).

¡        Zero-Based Budgeting Method

The zero-based budgeting method is composed of three scenarios that combine to produce the overall budget proposal. The data displayed is taken from maintenance plans and task lists for equipment or functional locations, for which you are responsible (for example, via the assigned cost center or planner group).

You can process the planning scenario in any order you like.

§         Task list scenario

Here you can add additional task lists, if required.

§         Maintenance plan scenario

Here you can create new rows.

§         Ad hoc scenario

Here you can also create ad hoc data under Ad hoc (Hist.).

¡        Combination of history-based and zero-based budgeting methods

The combined budgeting method is composed of the scenarios that are used as the basis, which are combined to produce the overall budget proposal.

Note that the system performs Checks during the creation of new rows.

       7.      Distribution to Periods

You distribute the data to the defined periods, either manually or using planning functions. The planning functions are as follows:

¡        History-Based Budgeting Method

§         History-based scenario

You can configure the period distribution with the global planning sequence Histories: Distribute Dates to Periods (see Planning Levels and Global Planning Sequences). You have the following alternatives:

·         The budget proposal is distributed to the periods such that the costs are incurred according to the orders.

·         The budget proposal is distributed equally to the periods.

§         Ad hoc scenario

The budget proposal is distributed equally to the periods.

¡        Zero-Based Budgeting Method

§         Task list scenario

The budget proposal is distributed equally to the periods.

§         Maintenance plan scenario

The budget proposal is distributed to the periods such that the costs are incurred according to the maintenance plan scheduling.

§         Ad hoc scenario

The budget proposal is distributed equally to the periods.

       8.      Alternative planning versions

You copy the data of your budget proposal into another planning version, if necessary, to create further budget proposals. You can find the copy or delete functions for this under Functions ® Functions.

       9.      Template for Approval

You decide on a planning version and send this budget proposal to your responsible manager for approval (bottom-up planning).

¡        If you are working without STS (Status und Tracking-System), you can find the approval functions under Functions ® Functions.

¡        If you are working with STS, this function is performed via the STS.

   10.      Evaluation

Various BW Reports are available for evaluation purposes. These reports include a detailed itemization of the budget planning, comparison of the budget proposal with historic actual or planned costs, as well as a budget check for the current year.

   11.      Adoption of Approved Budget Proposals

By implementing corresponding BAdI interfaces (Business Add-Ins), you can copy approved budget proposals, for example,

¡        Retraction in your ERP system as an active budget

¡        Updating of further data records of your BW system