SAP FICO

User manual
Published by Team of
SAP Consultants
at
SAPTOPJOBS
Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted in any form, or by any means electronic or
mechanical including photocopying, recording or any information storage and
retrieval system without permission in writing from SAPTOPJOBS
Entering Budgets
You must first create a funds center hierarchy and a
commitment items hierarchy within the master data
maintenance, usually comprising more than one
partial hierarchies.
The funds center hierarchy represents the
organizational structure of your business.
The commitment item hierarchy represents a
functional split of the revenues and expenditures in
your business.
In Funds Management budgeting, the two hierarchies
are combined. This means that every funds center
contains all the available commitment item sub-
hierarchies.

You allocate your budget by distributing it directly to

the funds centers and commitment items.

You can allocate the original budget on the top-down

principle or the bottom-up principle.
• Top-Down Budgeting
With top-down budgeting, you assign the budget from
superior funds centers and commitment items to
subordinate ones. This is an analytical procedure with
which the budget estimate for the organizational and
functional sub-areas of an organization is developed
bit by bit.
Top-down budgeting is to be recommended, for
example, if the funds in your organization are available
as a total for a fiscal year and you want to distribute
the budget to subordinate funds centers and
commitment items with the help of the system. The
system then verifies the consistency of the budget
allocation.
• Bottom-Up Budgeting
With bottom-up budgeting, you enter budget values to
subordinate funds centers and commitment items. The
system then totals them for each superior level and
displays them there.
We recommend this procedure if, for example, budget
values exist for the individual sub-areas of your
organization.

Allocating Original Budget in the Hierarchy – FR04

Definition:
We can use this transaction while entering original
budget for the organization for a particular financial
Year
Prerequisites
Commitment items and Fund Centers should exist in
the system.
Menu Path:
Accounting -> Public Sector Management -> Funds
Management ->Fund Management -> Budgeting->
Original Budget -> Change in Hierarchy ->

Note : Entry and change is done with the same

transaction
Procedure:

Double Clik on FR04

Enter FM Area and click

Enter an FM area and the required data.

You can enter a particular budget version. If you do
not enter a version, the system automatically uses
version 0.
If you do not want to edit the whole funds center and
commitment item hierarchy, you can enter a funds
center and commitment item from which the hierarchy
is to be built up. See the values enter in the screen
below as example:
Otherwise system will display entire Hierarchy
Press Enter Key or click

System displays Budget entry screen for selected

combination of Fund Centers and commitment items

Now enter the Budget values for selected Fund center

and Commitment item combination as shown below:
Note: Enter budget amounts for lowest level as system
will automatically add them up to higher levels
Distribution Key:
Breaking or distribution of budget to period level
depends on ‘Distribution Key’ which is selected
Various Distribution Keys are available in the system
We have selected Key as ‘1’ hence budget is distributed
equally for all periods

Click on for doing Total- up of the budget to higher

level

System will ask for the Years to be used for total up as

below:

We are selecting 2007 as we are entering budget only

for one year , but range of years can also be selected

Press Enter Key or click

System shows budget totaled up to higher level

See the screen below:
Click on to check the budget

We can view the budget break-down at period levels by

selecting option on the screen
You can click on up or down arrows

to view distribution of budgets for various Fund

Centers
Go back to original screen and click Save button

System returns to initial screen with message about

budget documents posted

Result:
Budget for selected Fund center , commitment item
combination for the year is posted in the system

Comment:
Similarly, budget can be entered for all fund centers
and commitment items for the organization.
 SAP FICO
User manual
Published by Team of
SAP Consultants
at
SAPTOPJOBS
Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted in any form, or by any means electronic or
mechanical including photocopying, recording or any information storage and
retrieval system without permission in writing from SAPTOPJOBS