Create Cost Budget – A summary of the activity

You can create three different types of cost budgets. They are

• budgets for costs incurred for “Detail” cost centers,

• budgets for costs and quantities at “Cost Element” level for each “Cost Center”,

• budgets for costs and quantities at ‘’Analysis and Sub Analysis Code’’ level for each ‘’Cost Center-Cost Element’’ combination.

A Cost Budget is created at the business unit level of the organization structure. It can also be created for the individual organization units that have been mapped to the business unit in which this “Cost Budget” business component has been installed. You can define a comprehensive “Aggregate” budget or a “Period” budget for a specified duration. You can enter the quantity or the value of the newly created budget. A newly created cost budget is always updated to a “Fresh” status.

This activity also allows you to automatically generate a budget. If parameter for cost budget- ‘’Automatically roll up Cost Budgets from Definition Type - CC-Analysis-CE’' in ‘‘Set Finance Process Parameter’’ is set as ‘’Yes’’, then Budget No. shall get generated for other definition types- 'Cost Center' and 'Cost Center - Cost Element' on performing the Create & Authorize task.

A new Budget No. shall get generated for other 2 definition type viz., Cost Center and Cost Center-Cost Element by replicating the Budget No. provided for definition type- 'CC-Analysis-CE' with '-1' and '-2' for the Transaction Type "Auto-Cost Budget".

Note: Automatically generated cost budgets cannot be modified. But if cost budget type- CC-Analysis-CE is amended then the other higher level budgets which were automatically created against the same shall get amended with new version number on authorization, irrespective of the set options in ‘’Set Finance Process Parameter’’.

The quantity or the amount of the newly generated budget could also be increased or decreased from the quantities or values based on which it has been generated.

This activity also allows you to authorize a cost budget. The system updates status of the cost budget as “Active”. The system also stores the login ID of the user and the system date along with the newly created budget details.

Getting familiar with the pages inside

What you can do in this activity

Create budget

Create new budget versions

Authorize budget

Create budget

Operational cost budgets can be created for “Detail” cost centers or for costs and quantities at “Cost Element” level for each “Cost Center” or for costs and quantities of “Items” for consumption or output from a “Cost Center” and for input costs of different “Cost Elements” and output volumes for “Items”. The duration of the cost budget can be assigned to it. An aggregate or a period budget can be created for the quantity or value.

• Go to “Create Budget Header” page.

• Enter the common information and create the budget header.

• Go to “Create Budget Details” page.

• Enter the budget values and create the budget details.

Create new budget versions

A budget can have multiple versions. All the versions of the budget must be defined for the same accounting period, same entity and of the same type. The system increments the version number sequentially when a new version of an existing budget is created.

• Go to “Create Budget Header” page

• Enter the budget number for which a new version must be created and create a new budget version.

Authorize budget

A budget that is in the “Fresh” status can be authorized. The system updates the status of the budget after authorization as “Active”. Modifications cannot be made to the budget in “Active” status.

• Go to “Create Budget Details” page.

• Authorize the budget.