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Budget Functionality in Project System

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HI Team,

 

Several time we will have budget issues in project system.  I am giving some examples how the Project System availability control behaves & its consequences.

 

Note :  In this case I am taking example of direct FI Posting to the WBS Elements

 

Step 1 ) Creation of 4 WBS elements for Testing

PS Bud1.jpg

 

Step 2) Assigning & releasing budget for the specific Budget H-0021-4

 

Here I enter Rs.1000/- as a Budget & released Rs.800/- only. The same you can get it in the PS Budget Report CJ32

 

Note the Budget is allocated only in the higher WBS Element i.e., H-021 only

PS Bud2.jpg

 

Step 3 ) Booking the expenses using FB50 for the 4th level WBS element H-0021-04, even though the budget allocated at Higher WBS Element.  Here system will allow to post expenses or not..? let see..!

 

PS Bud3.jpg

Its saving with out giving any error message & it consider the Budget from the top level WBS Element.  isn't it..?

 

Step 4 ) Check the Budget Report :

 

You can observe in the 4th line item, availability as 100 -ve value & the actual and assigned value as 100/-. It is because we have done some postings to the 4th level WBS Element.

 

In the top level WBS Element,  Current budget is 1000/-,  Released is 800/-,  Actual cost is 100/- (This is 4th Level WBS Element Actual amount), Finally it is showing that Available Budget as 900.

PS Bud4.jpg

 

Step 5) Now, I  distributed budget amount 200/- to the 4th level WBS Element

 

Here it shows that available or remaining 200/- at 4th WBS  Element.  If you are trying to post 100 then, will the system allow you to post ..?  Lets see...! A document has posted with 100/- INR.  Now the Available balance is 100/- INR.

PS Bud5.jpg

 

Step 6)  If the Available balance is 100/- INR, then trying to post 250/- to the 4th level WBS.  As per the standard report it should allow up to 200 since its showing for 200/-, but here the life has changed to error message...!

 

As expected system should through an error message stating that "150/- Budget exceed.   (Since Available Balance = 100 & Posted amount 250 = -150)

 

PS Bud7.jpg

 

its giving the error message for 150/- even through 200/- available in the specific WBS Element budget.

 

Reason :  System behavior is, after distribution to the 4th WBS system will consider 100/- already consumed with -ve value.  After assigning that it will consume the first & remain value would be 100/- & the invoicing amount would 250/- that is the reason, error triggered for 150.

 

But the budget report it shows availability for 200/-.  max time business have a confusing since it showing in budget available, even though system will not allow you to process further due to the above error.

 

 

Regards

 

Raj

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