Budget Entry and Release

SAP FM BCS Business Blueprint

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SAP Funds Management

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Document Code : 2030 02
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Budget Entry and Release

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Neither this document nor any part thereof may be copied or reproduced in any
form or by any means, or translated into another language, without the prior
consent of FmBcs.com. The information contained in this document is subject to
change and supplement without prior notice.

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Budget Entry and Release

Contents
Overview ................................................................................................................................................. 4
Budget Entry and Budgeting Tool ........................................................................................................... 5
Budget Release ....................................................................................................................................... 5
Budget Entry and Release Process Example ........................................................................................... 6
Organization Overview ........................................................................................................................... 7
Master Data ............................................................................................................................................ 8
AS IS Process ......................................................................................................................................... 14
Budget Entry Process in SAP ................................................................................................................. 15
Budgeting Workbench ...................................................................................................................... 16
Create / Change Budget Document .................................................................................................. 17
Budget Release Process in SAP ............................................................................................................. 18
Budget Release Scenario ................................................................................................................... 20
Document Version History .................................................................................................................... 21

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Budget Entry and Release

Overview

This document can be used as,

1. Sample Business Blueprints for SAP Budget entry and release process.
2. This document as been made on general assumption and you may find difference in business
process depending upon your industry and organization practice.
3. This document has been created for demo company “Dolphin Corporation” for illustrative
purpose.
4. You need to change this document before actually using it for your live project.
5. This document is a part of entire documents of fmbcs.com
6. This document tries to cover most of the business requirements. List will not be exhaustive.

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Budget Entry and Release

Budget Entry and Budgeting Tool

In the Budget Control System, you can enter budget in several different ways. You can work with a
single budgeting document using Transaction FMBBC, or use one of the following two tools to enter
budget and create more than one document at a time:

· Budgeting Workbench (BWB)

· Multiple Budget Entry Tool

You can use either tool for budgeting. The main difference between the above two tools is that you
can only carry out budgeting for one budget category in the Budgeting Workbench (Transaction
FMBB), but in the Multiple Budget Entry Tool (Transaction FMPEP), you can carry out budgeting for
several budget categories simultaneously.

Budget Release

In many organizations, distributing a budget is not the same as releasing the funds allocated to it.
For this reason, the Budget Control System contains a transaction (FMMPRELEN) for releases, which
you can use to partially release the budget. Note the following:

A release is based on the current total budget, which you can release at one time. You can also
release your budget periodically. However, the check to prevent you from releasing more budget
than you have is annual or overall, depending on your time horizon. If you want to define a
periodical budget release, it is recommended to define budget types that represent the period. In
doing so, you can easily report on unreleased budget and define appropriate checks.

If you have defined consumable budget types in Customizing, only these budget types will be
considered as "releasable" budget.

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Budget Entry and Release

Budget Entry and Release Process Example

1. Collection of All the plan value for next year

2. Consolidate Plan Value and Given it to Top Management for approval
3. On Approval from Top management, it become budget
4. Enter budget in System
5. Release budget Monthly or as per requirement

Top Management
Department A
Consolidate Budget
For Approval
Budget plan Year +1
For Year +1 Entire

Organization

Approved
Capital Expenditure A

Budget plan Year +1

Budget for

Year +1

Distribute
Event Plan Expenditure

Budget plan Year +1

Enter Budget into System

By Fund, Fund Centre or

Commitment Item
Release

Use Budget in Business Release Budget into System

Actual Expense
1. PO, GR, IV By Fund, Fund Centre or
2. Expense Commitment Item
3. Purchase

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Budget Entry and Release

Organization Overview
Dolphin Corporation Inc, is an incorporated under prevailing corporate law. This organization is
having business of manufacturing and trading cars.

Dolphin Corporation is an illustrative set up. This organization does not in existence. This name is
used to demonstrate concepts and understanding for SAP Funds Management.

Any resemblance with this setup or organization profile does not have any meaning and it should
not be linked with any other organization.

Dolphin Group has following two legal entities to run business.

1. Dolphin Manufacturing Corporation (DMC)

2. Dolphin Service Corporation (DSC)

For More Details ref our documents

“2010 01 Organization Profile”

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Budget Entry and Release

Master Data

Note : This section is illustrative and you need to put your real master data which you are going to
use. It depends upon your organization structure, department hierarchy, division structure.

Following master data will be created for Dolphin Corporation.

Company Codes

DM01 Dolphin Manufacturing Corporation (DMC)

DS01 Dolphin Service Corporation (DSC)

FM Area
DC01 Dolphin Corporation

Functional Area
FM-CAR CAR - Passenger Car
FM-SUV SUV - Sports Utility Vehicle
FM-MUV MUV - Multi Utility vehicle

Funds
INTERNAL Internal
EXTERNAL External

Fund Center
DMC10 DMC - Corporate
DMC20 DMC – Finance
DMC30 DMC – Manufacturing
DMC40 DMC - Procurement
DMC50 DMC – Sales and Distribution
DMC60 DMC – HR
DMC31 DMC East – Plant
DMC32 DMC West – Plant
DMC33 DMC North – plant
DMC34 DMC South – plant

DSC10 DSC - Corporate

DSC20 DSC – Finance
DSC30 DSC – Service Station
DSC40 DSC - Procurement

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Budget Entry and Release

DSC50 DSC – HR
DSC31 DSC East – Service Station
DSC32 DSC West – Service Station
DSC33 DSC North – Service Station
DSC34 DSC South – Service Station

Commitment
Items

Asset Accounts

Current Assets

1000 Petty Cash

1010 Cash on Hand (e.g. in cash registers)
1020 Regular Checking Account
1030 Payroll Checking Account
1040 Savings Account
1050 Special Account
1060 Investments - Money Market
1070 Investments - Certificates of Deposit
1100 Accounts Receivable
1140 Other Receivables
1150 Allowance for Doubtful Accounts
1200 Raw Materials Inventory
1205 Supplies Inventory
1210 Work in Progress Inventory
1215 Finished Goods Inventory - Product #1
1220 Finished Goods Inventory - Product #2
1230 Finished Goods Inventory - Product #3
1400 Prepaid Expenses
1410 Employee Advances
1420 Notes Receivable - Current
1430 Prepaid Interest
1470 Other Current Assets

Fixed Assets

1500 Furniture and Fixtures

1510 Equipment
1520 Vehicles
1530 Other Depreciable Property
1540 Leasehold Improvements
1550 Buildings

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Budget Entry and Release

1560 Building Improvements

1690 Land
1700 Accumulated Depreciation, Furniture and Fixtures
1710 Accumulated Depreciation, Equipment
1720 Accumulated Depreciation, Vehicles
1730 Accumulated Depreciation, Other
1740 Accumulated Depreciation, Leasehold
1750 Accumulated Depreciation, Buildings
1760 Accumulated Depreciation, Building Improvements

Other Assets

1900 Deposits
1910 Organization Costs
1915 Accumulated Amortization, Organization Costs
1920 Notes Receivable, Non-current
1990 Other Non-current Assets

Liability Accounts

Current Liabilities

2000 Accounts Payable

2300 Accrued Expenses
2310 Sales Tax Payable
2320 Wages Payable
2330 401-K Deductions Payable
2335 Health Insurance Payable
2340 Federal Payroll Taxes Payable
2350 FUTA Tax Payable
2360 State Payroll Taxes Payable
2370 SUTA Payable
2380 Local Payroll Taxes Payable
2390 Income Taxes Payable
2400 Other Taxes Payable
2410 Employee Benefits Payable
2420 Current Portion of Long-term Debt
2440 Deposits from Customers
2480 Other Current Liabilities

Long-term
Liabilities

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Budget Entry and Release

2700 Notes Payable

2702 Land Payable
2704 Equipment Payable
2706 Vehicles Payable
2708 Bank Loans Payable
2710 Deferred Revenue
2740 Other Long-term Liabilities

Equity Accounts

3010 Stated Capital

3020 Capital Surplus
3030 Retained Earnings

Revenue
Accounts

4000 Product #1 Sales

4020 Product #2 Sales
4040 Product #3 Sales
4060 Interest Income
4080 Other Income
4540 Finance Charge Income
4550 Shipping Charges Reimbursed
4800 Sales Returns and Allowances
4900 Sales Discounts

Cost of Goods
Sold

5000 Product #1 Cost

5010 Product #2 Cost
5020 Product #3 Cost
5050 Raw Material Purchases
5100 Direct Labor Costs
5150 Indirect Labor Costs
5200 Heat and Power
5250 Commissions
5300 Miscellaneous Factory Costs
5700 Cost of Goods Sold, Salaries and Wages

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Budget Entry and Release

5730 Cost of Goods Sold, Contract Labor

5750 Cost of Goods Sold, Freight
5800 Cost of Goods Sold, Other
5850 Inventory Adjustments
5900 Purchase Returns and Allowances
5950 Purchase Discounts

Expenses

6000 Default Purchase Expense

6010 Advertising Expense
6050 Amortization Expense
6100 Auto Expenses
6150 Bad Debt Expense
6200 Bank Fees
6250 Cash Over and Short
6300 Charitable Contributions Expense
6350 Commissions and Fees Expense
6400 Depreciation Expense
6450 Dues and Subscriptions Expense
6500 Employee Benefit Expense, Health Insurance
6510 Employee Benefit Expense, Pension Plans
6520 Employee Benefit Expense, Profit Sharing Plan
6530 Employee Benefit Expense, Other
6550 Freight Expense
6600 Gifts Expense
6650 Income Tax Expense, Federal
6660 Income Tax Expense, State
6670 Income Tax Expense, Local
6700 Insurance Expense, Product Liability
6710 Insurance Expense, Vehicle
6750 Interest Expense
6800 Laundry and Dry Cleaning Expense
6850 Legal and Professional Expense
6900 Licenses Expense
6950 Loss on NSF Checks
7000 Maintenance Expense
7050 Meals and Entertainment Expense
7100 Office Expense
7200 Payroll Tax Expense
7250 Penalties and Fines Expense
7300 Other Taxes
7350 Postage Expense
7400 Rent or Lease Expense

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Budget Entry and Release

7450 Repair and Maintenance Expense, Office

7460 Repair and Maintenance Expense, Vehicle
7550 Supplies Expense, Office
7600 Telephone Expense
7620 Training Expense
7650 Travel Expense
7700 Salaries Expense, Officers
7750 Wages Expense
7800 Utilities Expense
8900 Other Expense
9000 Gain/Loss on Sale of Assets

Note For updated list ref our document

“2040 20 Key Data Structure”

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Budget Entry and Release

AS IS Process

In this section you need to collect the information how budget entry and release happening within
organization. You need to figure out functional process of budget utilization, in most of the
organization budget planning data will be filled by individual department and it will be consolidated
by budget control department and after that it will be send for management approval.

Your questions may be like,

1. What is budget software used for entry and release purpose.

2. Who enter the budget data initially and when?
3. What is basis of budget release?
4. What is approval level required for budget release?
5. Annual budget or overall budget entry in system?
6. Budget distribution approach “bottom up” or “top down”?

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Budget Entry and Release

Budget Entry Process in SAP

In the Budget Control System, you can enter budget in several different ways. You can work with a
single budgeting document using Transaction FMBBC, or use one of the following two tools to enter
budget and create more than one document at a time:

· Budgeting Workbench (BWB)

· Multiple Budget Entry Tool

You can use either tool for budgeting. The main difference between the above two tools is that you
can only carry out budgeting for one budget category in the Budgeting Workbench (Transaction
FMBB), but in the Multiple Budget Entry Tool (Transaction FMPEP), you can carry out budgeting for
several budget categories simultaneously.

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Budget Entry and Release

Budgeting Workbench

The Budgeting Workbench provides a user-defined interface with which you can process budget
documents and check the consistency of the budget. In addition, the Workbench comprehensively
logs changes to the use of budget documents.

The Budgeting Workbench provides two main features:

1. Entry and modification of budget documents (multi-fund documents)

2. Management of existing FM budget documents

It supports a two-step process (prepost/post) with or without a workflow setting and the ability to
handle drafts (documents on hold)

The design offers:

1. Screen layout flexibility (layouts)

2. Single-entry screen for all business procedures
3. Data selection (budget address, held & posted documents)
4. Informational data (key figures)

Transaction FMBB is used for the Budgeting Workbench (BWB). SAP menu --> Accounting --> Public
Sector Management --> Funds Management --> Budgeting --> Budget Control System (BCS) --> Entry
Documents -- > Budgeting Workbench

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Budget Entry and Release

Create / Change Budget Document

There are several ways to create a document:

Create

1. The screen is empty (except default values).

Create with Reference

1. The user can select a document.

Held Document

Effective Document (posted, preposted)

1. The document can be reused as a template.

2. The new document will then be pre-filled with the existing data.
3. This has no effect on the template.

Change held document

1. A held document is a draft.

2. The user can select the document again, change it, or complete the entry process.

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Budget Entry and Release

Budget Release Process in SAP

1. In some organizations, the assignment of a budget amount does not necessarily mean that
the funds have been released. As a result, the SAP system allows you to release budget
values so that they are available gradually.
2. You can release budget values as a percentage or as whole amounts.
3. Releases can refer to overall values or to annual values. However, you cannot release period
budget values.
4. You can make as many releases as you want, but they cannot exceed the existing budget.
5. You can carry out individual releases at any time.

You calculate and release budget data using the menu SAP Easy Access --> Accounting --> Public
Sector Management --> Funds Management --> Budgeting --> Budget Control System (BCS) --> Tools
--> Entry Documents --> Release Budget Data..

You use this program to calculate budget to be released and to release budget data. The calculation
of budget to be released is based on a key figure.

This key figure is available in this program only if you have specified the category ”Release” for it.

In the header data of the program you enter the FM area, budget category, version and fiscal year
for which the budget is to be released.

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Budget Entry and Release

The program calculates the budget to be released according to the specified key figure and creates
the corresponding budget entry document lines for all FM account assignments that match the
selection criteria. For the calculation, you can take into account either all periods or periods that you
specify individually.

Using the following processes leads to different results: If you choose the process:

1. Enter, you release budget

2. Supplement, further released budgets are created
3. Return, the release of the budget is cancelled

Customizing regarding status management, document type, consumable budget,… must be set up
accordingly.

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Budget Entry and Release

Budget Release Scenario

Two scenarios are available in SAP system:

1. Release, two steps process. You have to create and release your budget separately. This
creates two documents. You can define which part of your budget is released.
2. Automatic Release. Your budget is automatically and entirely released. Only one document
is created. When you enter your budget, a second line releasing it is generated by the
system.

A release scenario is activated per FM area but the rules (not released, released, automatically
released) can be adapted per fund type and/or fund.

Note that you can define only one budget type for releases for your FM area.

SAP supports only some processes for the release: entry, return, supplement. You can decide which
of these are relevant for your organization.

Using the document type you also control the scenario to be supported within an entry document.

You can choose between the following scenarios:

1. Budget only - only budgeted amounts are contained in the entry document
2. Release only - only released amounts are contained in the entry document
3. Budget with automatic release.

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Budget Entry and Release

Document Version History

Document Version Date Author Remarks

V 1.0 01Jan2011 FmBcs.com Initial Release
V 1.2 12Aug2012 FmBcs.com 1st Revision
V 1.3 02Jan2014 FmBcs.com 2nd Revision
V 1.4 30Jun2015 FmBcs.com 3rd Revision

For any help, suggestion or feedback please write us at

Help@FmBcs.com

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