_BCS_Concept$20 original

SAP Fund Management Budget Control System (FM - BCS)

AgendaBudget Overview Budget Control System (BCS) Revenue Budgeting Budgeting Process in SAP

Budget OverviewWhat is BudgetType of Budget

BudgetWhat is Budget

An important instrument of the financial management used as aid in planning, programming and control

A budget may be defined as a financial and quantitative statement, prepared and approved prior to defined period of time, of the policy to be pursued during that period for the purpose of achieving the given objective.

Type of Budget

Operating revenue budget- related to volume of work anticipated

Operating expenditure budget: recurring expenditures for operation and maintenance of services e.g. salaries and wages, supplies, support utilities, maintenance

Capital budget ( non recurrent ): meant for growth ( new facilities), replacement of obsolete. Needs are many prioritize

Cash budget : provision for anticipated cash expenditures , for planning the cash flow e.g. salaries, bills etc.

Budget Control System (BCS)Describe the major features of the new Budget Control System (BCS)Discuss differences between BCS and Former Budgeting SystemDescribe how to enter budgets in BCSDescribe availability control using BCS

Why BCS?Topic: Budget Control System (BCS)Why did we develop this functionality? JFMIP Requirement:Funds Management functionAgency Requirement:Agencies have asked for more flexibility and capability What is the Business Process?Functionality to support full range of activity associated with BCS:BudgetingAvailability controlBCS replaces the old Funds Management, now called Former BudgetingNot just federal. State, local, and others can also use it.

Main Ideas of BCS No hierarchies in budgeting data itself Organizational changes simplifiedHierarchical evaluation of data via reportingEnhanced usability and clarity of data storedBetter performanceC: 300 $B: 250 $A: 1000 $BudgetingReporting

Main Ideas of BCS Concept of process and budget typeProcesses are defined by SAP and represent the budgeting framework provided Enter Transfer (Send/Receive) Return Supplement Carry Over (Send/Receive)Budget Types are specified by the customer to refine this framework to the needs of the customer Possible uses of Budget Types: Refinement/differentiation of processes (budget type as sub process) Keep information of original process during transfers/returns (budget distribution) Budget type to hold budget status information (US Federal)

Main Ideas of BCS Concept of Key FiguresCustomer defined views on budget dataUse in multiple contexts Transparent Consistency ChecksAll Consistency Checks are customer defined Powerful Availability ControlFlexibilityScalabilityEncapsulation from budgeting Introduction of a Status Management to control different phases within the budgeting cycle

Main Ideas of BCS Flexible Budget Structure independent of master data hierarchy Extensive use of CO-PA Assignment ToolAvailability ControlBudget Structure Various BAdIs

Features of Former Budgeting vs. Budget Control System

FeaturesFormer Budgeting SystemBudget Control SystemHierarchy In Budget valueYesNoBudget categoriesXXVersionsXXBudget TypeX (SAP)X (Customer)Process-X (SAP)ReleasesXXMaster Data Used In BudgetingFund CenterFund CenterCommitment ItemCommitment ItemFundFundFunctional Area (Optional)Functional Area (Optional)Funded program (optional)Grants (optional)Multilevel Availability ControlNoYesPreliminary Budget PostingYesYesTolerance Limit (Absolute / Percentage)Yes / YesYes / YesDocument Type for Budgeting documentNoYesDefinition of Key Figure (e g current budget)NoYesCreate Budget Document with ReferenceYesYesDefinition Posting Objects also for revenue account assignments XXBudget Structure Plan From YearPer Year

FBS or BCS?FBS and BCS are both available.Use FBS if:You cannot use BCS Release restriction, e.g., you are a German Local AuthorityMissing functionality, e.g., Year of Cash EffectivityUse BCS for:Grants Management integration with FM budgetingNew master data dimensions (grant, funded program)New architecture (no hierarchy as previously)New functionalities (US)If there is no special need to use FBS

Budget Control System BCS BudgetingBudget StructureBudgeting WorkbenchKey FiguresConsistency ChecksStatus Management

Functional Overview: Budget Structure Definition of allowed FM account assignmentsBudgeting (Budget Addresses)Posting (Posting Addresses) Definition of link between Posting and Budget Addresses for Availability ControlCarry Over of residual budgetCarry Over of budget for commitments

Main Ideas of BCSSupport of six dimensions (plus hidden customer dimension)FundFunds centerCommitment itemFunctional areaFunded ProgramGrant (integration with GM)Two Budget Categories: payment and commitment budgetUS public sector uses only payment budgetMultiple Budget Versions in parallelNew FM functionality is and will be targeted at using BCS, not Former BudgetingReporting (only in R/3, not BW) Check on allowed objects can be deactivated separately for budget and posting objects Definition of link between posting and budget objects via derivation rules (CO-PA Tool)

Budget Structure: Graphical Overview

Functional Overview: Budgeting Workbench Budgeting Workbench (FMBB)Document oriented transaction to enter budget dataSingle entry transaction offering all functionality related to budget entry documentsSome flexibility in layout (choose fields for header/lines, display key figures)Held DocumentsHeader areaNavigation areaItem area

Functional Overview: Key Figures Key figures (FMKFDEF)Rules for data aggregation from various data sources Budget data Commitment and actual data AVC dataKey Figure category defines scope of use Display in Reporting/Display in BWB Mass transfers/Year end process Consistency ChecksKey FigurevalueBudgetlinesKey figure evaluation

Functional Overview: Consistency Checks Consistency Checks (FMCCA, FMCCD)Customer defined checks based on key figuresTwo kind of checks are included in the tool: Address oriented checks: Take into account all values for a given address Entry document oriented checks: Take into account all lines of a given document

Status ManagementThe budgeting cycle can be split up into different phases.For each phase (status code), you specify which combinations of budgeting processes and budget types are allowed.You also specify which status code applies to each budget version.Authorization groups can be assigned to status/process/budget type combinations.

Status Management Example

tJuly 1Sept 1OctMarJuly AugOct20022003Budgeting calendar for:

FM Area 0001Version 0Budget category PBFiscal year 2003Fund FUND1

Budget Control System

BCS Availability ControlConcept and functional overview

Basics of availability control The availability control checks that the consumed amount does not exceed the consumable budget on a control object taking into account tolerances, which can be customized in the system.

Basic Questions of Availability Control (AVC) What kind of budget has to be checked?Budgeting: What contributes to the consumable budget? Where is the budget against which the consumptions should be checked?Posting: Where is the object holds the consumable budget? How must the check be performed?

Principle Goals of BCS AVCFlexibilitySimplified use Definition of rules for deriving the check objects (= control objects) Definition of consumable budget (e.g. active version) Centralized Customizing No implicit rules

Availability Control Ledgers The AVC writes data to a so-called Availability Control LedgerAn availability control ledger is a specific view on (or aggregation of) a complete budget and the assigned budget consumptionsThe user activates one or several availability control ledgers for each budget category.

Filters AVC filters define which values are relevant for Availability ControlExample: filters for budget values determine which kind of budget values define the consumable budget for postings

Concept of AVC Control Objects Derivation rules determine where budget consumptions are compared to the consumable budget ( definition of the control object)are attached to each availability ledgerare defined as Strategies of the CO-PA Derivation Tool

Tolerance Profiles Availability Control actionsErrorWarningWarning with mail Tolerance limit: relative usage rate (in %) In Tolerance Profiles per activity group different tolerance limits together with corresponding actions can be assigned Activity groups are customizable

General Remarks about Technical Design AVC data kept completely separate from budget data in AVC Ledgers Possibility to keep multiple Ledgers in parallel and therefore to allow multiple checks in parallel AVC Ledgers technically are ledgers of an FI-SL table group (FMAVC)

Multi Level Availability ControlControl object 1Control object 2Control object 3Control object 4StrategiesPayroll postingAVC Standard Ledger 9HAVC Customer Ledger $2AVC Customer Ledger $1AVC Customer Ledger C1

Requirement

Posting on: Commitment Item 11.11Fund Center 10042Fund 400

Must be checked on:

Level 1Commitment Item 11.Fund Center 10042Fund 400




Example for multi-level checks$1300FC1 / CI TOP$400Payroll$900FC2 / CI 2$400FC3 / CI 2$400FC4 / CI 2Level:Level 1Level 2Level 3Check type:fatalfatalinformationalValues = expendable budgetExpendable budget =Consumable budget Consumed amountFC2 / CI2s cons. budget =FC2 / CI2s own budget +FC3 / CI2s own budget +FC4 / CI2s own budget

Example for multi-level checks 1st posting: $1200 to payroll node$100FC1 / CI TOP-$800Payroll$900FC2 / CI 2$400FC3 / CI 2$400FC4 / CI 2Level:Level 1Level 2Level 3Check type:fatalfatalinformationalPosting passes all check levels due to tolerance settings for activity group payroll

Example for multi-level checks 2nd posting: $500 to node FC4 / CI2-$100FC1 / CI TOP-$1000Payroll$900 ($400?)FC2 / CI 2$400FC3 / CI 2$400(-$100?)FC4 / CI 2Level:Level 1Level 2Level 3Check type:fatalfatalinformationalPosting would pass due to available budget Posting would pass due to informational Posting does not pass this level error

Example for multi-level checks Ledger 1: Control objects only on check level 1$1100FC1 / CI TOP($200)Payroll($100)FC2 / CI 2($400)FC3 / CI 2($400)FC4 / CI 2Level:Level 1Level 2Level 3Control objects:YesNoNoDefault tolerance profile: fatal

Example for multi-level checks Ledger 2: Control objects on check levels 1 and 2$0FC1 / CI TOP$200Payroll$900FC2 / CI 2($400)FC3 / CI 2($400)FC4 / CI 2Level:Level 1Level 2Level 3Control objects:YesYesNoDefault tolerance profile: fatal

Example for multi-level checks Ledger 3: Control objects on check levels 1, 2, 3$0FC1 / CI TOP$200Payroll$100FC2 / CI 2$400FC3 / CI 2$400FC4 / CI 2Level:Level 1Level 2Level 3Control objects:YesYesYesDefault tolerance profile: informational

Revenue BudgetingRevenue ProjectionBasic business benefits

Revenue ProjectionsWhat is Revenue Projection ?How do you project revenue? Part science Part artPart philosophy Part luck

GOAL: Some revenue sources exceed projections by similar amounts that other revenue sources lag behind projections.

Basic Benefits of Revenue Budgeting Basic Benefits

Quantitative expression of the Revenue planning Evaluation of financial performance in accordance with plansOptimizing RevenueControlling costs Optimizing the use of resourcesDirecting the total efforts in to the most profitable channels

Budgeting in SAPBudget Planning Budget ExecutionActual / Commitment UpdateReporting and Monitoring

Budgeting in SAPSAP Budget Control System provide extensive functionality in following aspects

Budget Planning Budget ExecutionActual / Commitment UpdateReporting and Monitoring

Budget PlanningYou may do Budget Planning by following tools

From SEM-BPS, Strategic Enterprise Management Business Planning SimulationFrom ControllingFrom external data, legacy systems, and MS ExcelFrom BCS Entry document-oriented copy transactions

Budget Planning Process

You can use budget plans from previous years as a template for budget planning.

Budget Planning Overview

Planning Tool I Planning with SEM BPS

Budget Planning II Planning with Controlling Data

Planning Tool III Planning In FM

Budget Execution : Budgeting workbench

SAP Screen FMBB for Budget Workbench

Budget Control System

Actual / Commitment Update : Integration

Integration with SD Module

Revenue Scenario

Reporting and MonitoringBCS Provide following reporting and monitoring system

SAP BCS Information SystemDrilldown Reporting SystemBIW Information System

Reporting in SAP BCS

Further Processing option

SAP BCS Information System

Sample Line Item Reporting

Drill down Reporting Tool

Sample Drilldown Report

SAP BW Reporting for BCS

No hierarchiesUsers do not think in hierarchiesUser interface and data more transparentMore flexibility in reportingOutlook/idea: If needed budgeting could interpret an (external) hierarchy to support specific processes (distribution, workflow,)Flexibility and usability aspect:Key figures and consistency checks are completely flexible, customer decides on complexityAVC must not be complex but can cover complex requestsFlexibility and usability aspect:Key figures and consistency checks are completely flexible, customer decides on complexityAVC must not be complex but can cover complex requestsBesides the above listed functions, there are two special ones, that can only be used when BCS is active:Multi-Year Budget Starting from SAP R/3 Enterprise Public Services 2.00 (EA-PS 2.00) you can use a year-dependent budget for Funds Management. This enables you to manage one of the budgets independent of a fiscal year. The activities of the fiscal year change are no longer required by a multi-year budget. The budget one entered can be managed as a multi year budget.General budgetary ledger As of SAP R/3 Enterprise Public Services 2.00 (EA-PS 2.00), you can use the budgetary ledger to post budget-relevant processes to SAP Financial Accounting (FI) by generating separate FI-GL document lines. You can post budget data from any budget and commitment/actual posting process to SAP Financial Accounting. This data is recorded in the General budgetary ledger (BL).Taking all four possibilities together one is very flexibleDue to customizable user interfaces usability of the transactions is ensuredEnhancement within BWB and copy can be imagined easily (Ideas: manual CF, specific transfers with different budget type for sender and receiver, copy interpreting organizational changes, n:1 copy,)Open pointsYear end process/carry forwardReportingAspect of flexibility and usabilityEasy to understand conceptIn principle no hard coded, non-transparent checks in the system (customer decides what should be checked)More transparency due to skip of hierarchy in budgeting dataNo fixed/non-transparent views, but customer defined key figuresChecksTotals oriented (address check) to ensure overall budget consistencyEntry document oriented checks (documents check) to ensure consistency within the documentAspect of flexibility and usabilityEasy to understand conceptIn principle no hard coded, non-transparent checks in the system (customer decides what should be checked)More transparency due to skip of hierarchy in budgeting dataNo fixed/non-transparent views, but customer defined key figuresChecksTotals oriented (address check) to ensure overall budget consistencyEntry document oriented checks (documents check) to ensure consistency within the documentDefinitions: Consumable budget = budget that can be assigned or consumed by postings Consumed amount = budget consumption (formerly called assigned values) by actuals or commitmentsAvailable amount = difference between the consumable budget and the consumed amount (amount that can still be consumed by further postings) New tool: Filters define, which kind of budget is available for postings, for instance which version or which budget value type. Derivation rules (Characteristic Derivation CO-PA) are used to define the element (= control objects) where consumed amounts are checked against consumable budget. Tolerance profile are sets of single tolerance limits, which are grouped together per availability control action and per activity group.Flexibility: The check objects (= control objects) are not derived from the Budget Structure any more, but can now be defined by Customizable derivation rules. It is now possible to choose another budget version as active version instead of 000, where availability control is performed. Currently checks are only possible against annual values.

Simplified use: The AVC Customizing is not distributed over several IMG chapters any more. The IMG activities for AVC are now separated from the Customizing for budgeting. There are no more dynamic control objects. The new derivation of control objects does not take into account any more, whether some budget object has some budget or not. Consumable budget and consumed amounts are stored in FI-SL ledgers called availability (control) ledgers. There is at least one availability control ledger per budget line (= budget category). Attached to each availability control ledger are rules for data aggregation ( filters and derivation strategies) and rules for carrying out the availability checks ( tolerance profiles). Each availability ledger must be activated per FM area and fiscal year. Filter for budget valuesCurrent filter attributes:Budget versionNew value type (BUKU_VALTYPE; e.g. budget or releases)Combination of workflow states (WFSTATE): parked and posted budget values or only posted valuesBudget typesFilter may be used for both sides of the availability ledger: For budget values entering as consumable budget ( usual case)For budget entering as consumed amount ( new application!)

Derivation rules for control objects are realized as strategies or Characteristic Derivations of the CO-PA tool. Changes in a strategy leading to changes of the assignment of control objects are now catchable, which allows for automatic reconstruction of the availability control ledger. Dynamic control objects are not used any more. The derivation of the control object is a two-step-process for posting objects. This is required by the year-end carry-over processes. At the moment only absolute tolerance limits are supported (= relative usage rates). Currently only two different availability control actions are provided, but it is planned to support fully Customizable actions later. Activity groups are derived by using CO-PA strategies. Transaction code for editing strategies: BUAVCDERIACTGAspect of flexibility and usabilityMore transparency in the assignment rule definitions than beforeScalability: Customer decides how complex his AVC rules should be

You can use budget plans from previous years as a template for budget planning.The procedure for drawing up a budget generally involves the discussion of different estimates bycommittees. The results of these discussions can be stored in the system as budget versions.Version management allows you to copy, change and block versions.You make the decision whether budget releases should be used for budget execution.

With the Budget Control System (BCS), you can load your planned budget to FM from various sources, depending on your scenarios and business processes.You use the retractor in order to post the results of your planning activities back to SEM BPS in the operational environment.You create your planning in SEM-BPS.You create a BW query in BW which collects planning data ( the ODBO flag must be activated in the query).You define a number range for postings in the Customizing for the retractor.You also maintain field assignments (mapping) of BW and FM data by using derivations.Example: you can define that BW budget values from planning version 150 are regarded as approved"budget" and are posted in budget version 000 (as original budget) in the SAP system. Start the data transfer from the SAP system. You can use a variant of a query in order to select the datain the query created in BW. The data transfer usually results in an error message if master data is imported from BW that does notexist in the SAP System. The reason: you need additional master data in the budget preparation phase,which is why you created this in BW. In this case, you must create the missing master data and start theretraction again. Program FMCYCOPI_CO copies plan version data from Controlling (CO) into a budget version inFunds Management (FM). You use this program to create the same budgets in FM by transferring COplanning data. This data transfer can take place as often as desired. Please note that this transfer will overwrite allmanual changes made in BCS. However, even if manual changes are overwritten, CO and BCS are stillsynchronized. CO acts as the reference in this case. In this respect, the budget in Funds Management istherefore independent of the CO planning data. The program determines the recipient in Funds Management based on the assignments from FM accountassignments to CO account assignments using the account assignment derivation tool. If you makechanges to the assignment, the planning data transferred into Funds Management until now will betransferred automatically to the new recipient with the next planning data transfer. The program considers the primary CO planning data in table COSP and the secondary CO planningdata in table COSS. As you can assign the fund and functional area directly in CO planning starting from Release 4.62A, youcan use program FMCYCOPI_CO and execute the entire budget planning process in controllingYou can only generate budget data in the target version using the internal budgeting process ENTR.Planning functions allow you to distribute planned FM account assignments to different planning tasks.The planning tasks that a planner has to carry out are defined in a planner profile. You define the entry mask of planning tasks in the planning layout. In a layout, you can display theavailable actual data and/or the planning data (such as the budget data from the previous fiscal year),which is to be used as a comparison for planning. You can also change the output values of thecorresponding columns using formula definitions. BCS Planning offers: Flexible definition of planning layouts- User-defined definition of header and spreadsheet- Additional display columns- Definition of formulas and inverse formulas Definition of planner profiles- Definition of default parameters- Grouping of planning tasks (for planning layout) Excel spreadsheet integrationThe Budgeting Workbench provides a user-defined interface with which you can process budgetdocuments and check the consistency of the budget. In addition, the Workbench comprehensively logschanges to the use of budget documents.. The Budgeting Workbench provides two main features: Entry and modification of budget documents (multi-fund documents) Management of existing FM budget documents. It supports a two-step process (prepost/post) with or without a workflow setting and the ability to handledrafts (documents on hold). The design offers: Screen layout flexibility (layouts) Single-entry screen for all business procedures Data selection (budget address, held & posted documents) Informational data (key figures)A revenue commitment occurs in Funds Management as a result of the sales order. You can define whether the active availability control (AVC) should also check postings to revenueitems. If it should, the total of revenues cannot be smaller than zero, through transfers for example. Ifyou have defined absolute tolerance limits when defining tolerance limits in the step Tolerances for theAvailability Control, the revenues total cannot be smaller than these. If negative budget values were entered for a revenue commitment item, the AVC checks the debit on therevenue position against this budget. This debit cannot be bigger than the negative budget. The checklogic for revenue items therefore is the same as that for expenditure items with the opposite +/- sign. The check for revenue items is only active when the AVC is active. If you deactivate the AVC, by notsetting the flag actively, no check for revenue items takes place.The executed drilldown report can be processed further using the following interfaces: Print: SAP, MS Word 6.0 or Excel Mail: SAP Office Graphics: Using menu option "Graphics", you can call up SAP Business Graphics (2D or 3D) and statisticalgraphics (line charts). It is possible to save graphics settings (excluding window size and position). MS Word: Print, further processing XXL List Viewer Excel: Print MS-EXCEL: Further processingOnly FM specific data can be evaluated in Funds Management. When using drilldown reports, you candefine your own specific "views" of FM data. By choosing characteristics and key figures for the FM data, you can have the system generate amultidimensional data cube. The user can then freely navigate through the dataset for this data cubewhen executing reports. By swapping characteristics interactively, you can specify any sequence yourequire. Only one of the many possible dimensions is ever displayed for the report that is being executed. Acombination of several dimensions is only possible through navigation. Drilldown reporting is a reporting tool in which the different characteristics of the application have"equal status" and can be combined (together with the appropriate data) according to your needs. For drilldown reporting, you must define: - how many "characteristics" are to be viewed - the sequence in which the report output should be totaled.SAP BW is the strategic evaluation tool of SAP Public Sector. The integration of both applications is constantly being improved. For example: New extract structures Master data substrings can be uploaded Texts can be uploaded A new logical database FMB has been set up Reports have been created