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BaanERP Finance

Financial Budget System and CostAccounting

Module Procedure UP040A US

Financial Budget System and Cost Accounting

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Document code : UP040A USDocument group : User DocumentationDocument title : Financial Budget System and Cost AccountingEdition : ADate : July 1998

© Copyright 1998 Baan Development B.V. All rights reservedThe information in this document is subject to change without notice. No part of this documentmay be reproduced, stored or transmitted in any form or by any means, electronic or mechanical,for any purpose, without the express written permission of Baan Development B.V.Baan Development B.V. assumes no liability for any damages incurred, directly or indirectly, fromany errors, omissions or discrepancies between the software and the information contained in thisdocument.

Financial Budget System and Cost Accountingi

Table of contents

1. The Financial Budget System (FBS) module and the Cost Accountingmodule (CAT) in BaanERP 1-1

1.1 The FBS/CAT concept as applied in BaanERP 1-11.2 FBS’s/CAT’s functional procedures 1-41.3 The modules related to FBS/CAT 1-51.4 The functionality of FBS’s/CAT’s business objects 1-7

2. The multi dimension budgeting procedure 2-12.1 To carry out a multi dimension budgeting procedure 2-1

3. The single dimension budget procedure 3-13.1 To carry out the single dimension budget procedure 3-13.2 To use other optional sessions in the single dimension budgeting procedure 3-7

4. The activity-based budgeting procedure 4-14.1 To carry out the activity-based budgeting procedure 4-14.2 To use optional sessions in the activity-based budgeting procedure 4-7

5. The single-dimension controlling-procedure 5-15.1 To carry out a single-dimension controlling-procedure 5-1

6. The activity-based management procedure 6-16.1 To carry out the activity-based management procedure 6-1

Financial Budget System and Cost Accountingii

Financial Budget System and Cost Accounting1

About this document

Read this document to get an overview of the Financial Budget System(FBS)/Cost Accounting (CAT) module’s functionality and to learn more aboutthe functional procedures that are related to FBS/CAT.

You need no detailed knowledge of the BAAN software to read this document.However, you are more likely to understand the contents if you are familiarwith:

n The overall structure of packages, modules, and sessions within theBaanERP software

n The general business procedures used in everyday business practicen Principles of budgeting and cost controllingn The basic concepts of enterprise resource planning

For detailed descriptions of the module’s sessions, refer to BaanERP’scomprehensive online Help.

To use this document

Read Chapter 1, The Financial Budget System (FBS) module and CostAccounting (CAT) module in BaanERP, if you want to know more about:

n The module’s functionalityn The relationship of the module with other modulesn The functionality of the module’s business objects

Read Chapter 2, The Multi dimension budgeting procedure, if you want toknow more about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the procedure

Read Chapter 3, The single dimension budgeting procedure, if you want toknow more about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the proceduren The optional procedures that are related to the procedure

Read Chapter 4, The activity-based budgeting procedure, if you want to knowmore about:

n The sessions in the proceduren The results of the proceduren The sessions that are related to the proceduren The optional procedures that are related to the procedure


Read Chapter 5, The single dimension controlling procedure, if you want toknow more about:


Read Chapter 6, The activity management procedure, if you want to know moreabout:


Acronyms used in this document

ACR Accounts Receivable

BOM Bill of Material

CAT Cost Accounting

CMG Cash Management

COM General Data

CPR Cost price Calculation

EMM Enterprise Modeling Management

FBS Financial Budget System

FST Financial Statements

GLD General Ledger

HRA Hours Accounting

IBD Item Base Data

IPD Item Product Data

MCS Tables

OLAP On-line Analytical Processing

PCS Project Control System

PUR Purchase Control

ROU Routing

SFC Shop Floor Control

SLI Sales Invoicing

SLS Sales Control

TD BaanERP Order Management

TF BaanERP Finance

TI BaanERP Manufacturing

TP BaanERP Project

TS BaanERP Service

WH BaanERP Warehousing


Legend

Mandatorysession

Indicates a mandatory session

Optionalsession

Indicates an optional session

Mandatorybusiness object

Indicates a mandatory business object

Optionalbusiness object

Indicates an optional business object

TFIndicates a package

FBSIndicates a module

FBSIndicates a module that is described in the module procedure

Financial Budget System and Cost Accounting1-1

This chapter provides information on:

n The FBS/CAT concept as applied in BaanERPn FBS’s and CAT’s functional proceduresn The modules related to FBS/CATn The functionality of FBS/CAT business objects

1.1 The FBS/CAT concept as applied in BaanERP

Planning and comparison of actual results with budgeted amounts and quantitiesare important issues of financial analysis for a company.

All budgeting functionalities are contained in the FBS module, whereas thefunctionalities for cost analysis and cost allocation are implemented in the CATmodule.

You can use FBS for registering, handling, and monitoring all budget amountsand quantities necessary for planning by ledger account or by dimension or by acombination of both.

In case of single dimension budgeting you can:

n Perform single dimension-oriented budgeting: Budgets for ledger accounts(for example, cost types) are ordered by dimension

n Set up performance budgets for reference units (for example, cost drivers)

n Carry out flexible budgeting by introducing the destinction between fixedand variable budget amounts and quantities

n Perform activity-based budgeting in connection with the Cost Accounting(CAT) module

n Perform bottom-up budgeting

n Define multiple hierarchies for analysis purposes

n Integrate budget cost-rates and budget surcharges in the Cost PriceCalculation (CPR) module and the Project Control System (PCS) module inBaanERP Manufacturing

n Perform variance analysis in conjunction with single-dimensional budgeting

n Export FBS data to Hyperion products

n Compare budgets with other budgets

In case of multi dimension budgeting you can:

n Perform ledger account budgetingn Perform (multi) dimension-oriented budgeting, such as setting up budgets

with dimensions of different types in combinationn Perform top-down budgetingn Perform bottom-up budgetingn Compare budgets with other budgets or actual data

1. The Financial Budget System (FBS) module and the CostAccounting module (CAT) in BaanERP

The Financial Budget System (FBS) module and the Cost Accounting module (CAT) in BaanERP


You can use CAT for controlling costs for single dimension-based budgets: forexample, the overhead costs of cost centers. CAT also defines performance andallocation relations and carries out cost allocation for budgeted and actualfigures.

You can:

n Build flexible allocation relations for budget and actual scenarios

n Import actual figures (amounts and quantities) from GLD and the BaanERPsystem

n Analyze the actual figures compared with the budgeted figures

n Determine the allowed costs and deviations based on the flexible budgetsand post the deviations to GLD

n Integrate actual cost rates and actual surcharges in the Cost PriceCalculation (CPR) module and the Project Control System (PCS) module inBaanERP Manufacturing

n Perform activity-based costing

n Export budget and cost analysis data to Hyperion OLAP

CAT has integrations with the logistic part of BaanERP from whichperformance values can be imported. The cost accounting results are used in thecalculation procedures in the Cost Price Calculation (CPR) module and theProject Control System (PCS) module.



Figure 1 shows how the FBS/CAT module is positioned in BaanERP.

Project

Logistics

Basic data

MCS

EMM

FBS

Finance

GLD

CMG

COM IBD

TI

WH

TD

TP

Central Invoicing

SLI

Service

TS

CAT

Figure 1, The FBS/CAT module in BaanERP

FBS is a budgeting and planning module.

The basic data that FBS uses includes:

n The ledger accounts and dimensionsn The currencies usedn Cost object defining attributes, like item, warehouse, or projectsn Projects defined in PCSn Basic cost-price calculation data like cost-price calculation code, cost

component, operation rates, surcharges

CAT is a controlling module.

The basic data that CAT uses includes:

n The ledger accounts and dimensionsn Cost object defining attributes, like item, warehouse, or projectsn Projects defined in PCSn Work centers, employees, machines, tasks



1.2 FBS’s/CAT’s functional procedures

FBS/CAT contains 5 functional procedures.

1 Multi dimension budgeting2 Single dimension budgeting3 Activity-based budgeting4 Single dimension controlling5 Activity-based management

The budgeting procedure consists of the steps necessary for defining andexamining financial budgets. The steps cover the definition of the budgets, andthe distribution of the budget amounts over the budget periods:

n For budget comparisonn For integration of budget cost-rates to CPR/PCSn For controlling/analysis purposes

It also contains optional sessions that enable:

n Recalculation of budget data based on actual datan Rebuilding budgets, multi dimension budgets with budgeting method

bottom-up onlyn Copying from actual data in GLD to a budget or from some other budget

In the CAT-related procedures, single dimension controlling and activity-basedmanagement, you can perform the analysis procedure based upon singledimension budgets. This implies that you can import actual performances (forexample, from logistic modules like HRA) and amounts (from GLD) for therelated (budgeted) dimensions and reference units.

You can define allocation relations and perform price iteration on these to getthe correct allocated costs (secondary costs) for dimensions/reference units ofbudget and actual data.

After that, you can make a variance analysis with different reports and ahierarchical analysis in Hyperion OLAP after export. You can also import therates/surcharges into CPR/PCS.

In Activity-based management you can control activities (logistic processes)with their reference units (cost drivers) through a bill of activities and activityresults.



1.3 The modules related to FBS/CAT

Figure 2 shows the modules that are related to FBS/CAT.

CPR

FST

PCS

FBS CAT

GLD

CMG

CPR

Manufacturing

Distribution

FST

PCS

CAT

IPD

FBS

GLD

SFC

ROU

BOM

PUR

SLSCommon

COM

HRA

Figure 2, The modules related to the FBS/CAT module

FBS receives information from:

n The general ledger (GLD).The actual values posted on respective ledgeraccounts and dimensions can be copied to a budget or can be displayedduring the budgeting process

n The Cost Accounting (CAT) module. Adjusting or creating budgetperformances for the defined reference unit per specified budget as a resultof cost allocation. (In case of retrograde planning)



CAT receives information from:

n The general ledger (GLD): Actual cost that can be used for cost controllingand actual allocations

n The Financial Budget System (FBS): CAT uses the master data and thedimension and the performance-oriented planning figures as a base for thevariance analyses

n BaanERP Logistics: Actual performances can be imported automatically, ifthe links are defined in FBS. This is, for example, needed for activity-basedcosting

n The Hours Accounting (HRA) module: The actual performance quantitiescan be imported according to a linking scheme

FBS/CAT uses the following information to set up budgets, hierarchies,structures, planning and controlling:

n The ledger account and dimension data from the General Ledger (GLD)module

n The finalized transactions and non-finalized transactions present in theGeneral Ledger (GLD) module

n Cost-price calculation data like cost-price component, cost-price calculationcode and so on defined in the Cost Price Calculation (CPR) module todefine an integration scheme and so on

n Master data like item, warehouse, project to define integration schemes

n Hierarchy of ledger accounts and dimensions from the General Ledger(GLD) module

The Financial Budget System (FBS) module and the Cost Accounting (CAT)module are related to the following modules:

n General Ledger (GLD) module, which transfers actual amounts andquantities (optional) posted on ledger accounts and dimensions. Thebudgeted figures can also be viewed/printed in the inquiries and reports of.The General Ledger (GLD) module

n The Cash Management (CMG) module uses budget amounts for a cashforecast procedure

n The Financial Statement (FST) module includes reports listing the valuesentered in the FBS module

n Budgeted surcharges/rates (from FBS) and actual surcharges/rates (fromCAT) to be used as base data for the item and project calculation, can beintegrated into the Cost Price Calculation(CPR) module

n Budgeted project surcharges (from FBS) and project surcharges (fromCAT) can be integrated into the Project Control System (PCS) module



n The Cost Allocation (CAT) module, which analyses the actual values andthe allocation procedures for budgets and actuals (Only for FBS)

n The Financial Budgeting module, which provides the whole planningfunctionality (only CAT)

n The Hours Accounting (HRA) module to retrieve actual performancequantities for time reference units (only CAT)

n Other logistic modules like Sales (SLS) and Purchase (PUR) for theimportation of actual performances (Activity Bases Costing)

1.4 The functionality of FBS’s/CAT’s business objects

FBS contains the following business objects:

n Master Datan Budget Data

CAT contains the following business objects:

n Master Datan Cost Analysisn Hierarchical Analysis with Hyperion OLAPn Cost Allocationn Activity-Based Costing



Figure 3 shows the main flow between the business objects.

Budget Data

FBS Master Data

GLD

FST

CMGPCS

CPR

SFC

ROU

BOM

IPD

HRA

PUR

SLS

Cost Analysis

CAT Master Data

Hierarchical Analysiswith OLAP

Cost Allocation

Activity-Based Costing

Figure 3, Main flow between the business objects in the FBS/CAT module

Master Data (FBS)

Use the Master Data business object for definition and modification of the staticdata. For example:

n Budgets master data like budget currency and parent-child relationsbetween budgets

n Budget distributionn Budget defaultsn Reference unitsn Hierarchiesn Report structuresn Ledger account structuren Dependencies between ledger accounts



Budget Data

The Budget Data business object contains the maintenance of budget data, suchas amounts and quantities and/or performances. The purpose is to set upfinancial budgets with wich the actual results can be compared.

Budgeting can be carried out in relation to ledger accounts or dimensions.Budget amounts and quantities are planned per year and broken down intoperiod values. In case of performance-dependant budgeting, rates andsurcharges are calculated for the year values and can be integrated into the CostPrice Calculation (CPR) module. Only project surcharges are integrated into theProject Control System (PCS) module.

Master Data (CAT)

Use the Master Data business object for definition and modification of masterdata. This business object contains:

1 The parameters for the CAT module, for example, the accounting method tobe applied for calculating the deviations

2 Cost categories to be used for the allocation functionality

3 Accounting scheme for operating results. For posting remaining costs likefixed costs and deviations to other dimensions

Cost Analysis

This business object handles the actual amounts and performance quantities thatare used to control the deviations and the comparison data. This business objectis subdivided into the following sub-functions:

n Actual costs: To import and distribute actual costs from the GLD module

n Actual performance: To import actual quantities from logistic modules, likeHRA, or to maintain them manually

n Actual rates and surcharges: To enable integration of post-calculatedoperation rates and surcharges into the cost price calculation

n Deviation analysis: To analyse the imported actual costs based on theflexible budget, which consists of the budget data from FBS and actualperformances

n Reporting systems: To be able to print out actual cost allocation sheets

Hierarchical Analysis with Hyperion OLAP

This business object can be used for export to Hyperion OLAP for hierarchicalanalysis of single-dimension budgets and deviation-analysis results according tomultiple hierarchies on ledger accounts and dimensions as defined in the FBSmodule.



Cost Allocation

The aim of this business object is to build a model of allocation relationsbetween dimensions. You can define allocation relations for actuals andbudgets. Allocations can be done by means of performance quantities,percentages, or amounts. Because of the strong relationship betweenperformance budgets and allocation relations, this business object is also part ofthe single-dimension process. The price iteration and integration of iterationresults can transfer the precise secondary costs into the Financial BudgetSystem (FBS) in case of budgeted allocation and to the General Ledger (GLD)module, or Cost Accounting (CAT) module in case of actual allocation. There isalso a strong relationship between this business object and the Activity BasedCosting business object. A bill of activities can be derived based on theallocation relations.

Activity Based Costing

By means of all the business objects in the FBS and CAT modules an activity-based costing system can be set up. Activities are selected as one of the fivedimension types like cost-center accounting or cost-object accounting. Thisbusiness object contains only the functionality that is specific for activity-basedcosting.


This chapter describes:

n The multi dimension budgeting proceduren The sessions that are related to the multi dimension proceduren The optional sessions that can be used

2.1 To carry out a multi dimension budgeting procedure

You can use the multi dimension budgeting procedure to carry out many aspectsof a budget in a ledger account or in multi dimension based budgeting system.A multi dimension budget is the ledger-account-oriented approach where costscan be related to multiple dimensions at a time.

You can choose between annual budgets, and/or budgets which are distributedaccording to a predefined distribution method over periods.

The budgeting procedure consists of the steps necessary to define and examinefinancial budgets. The steps cover the definition of the budgets, and thedistribution of the budget amounts over the budget periods.

Budget amounts and quantities can be compared with actual and comparisonbudgets.

When all master data needed is defined, the budget amounts and quantities canbe entered and the distribution over periods can take place.

2. The multi dimension budgeting procedure

The budgetingaccounting procedure’sresult s

The multi dimension budgeting procedure


Figure 4 shows the steps in the multi dimension budgeting procedure fordefining annual budgets. To complete budgeting, you must at least carry outsteps 1 to 13.

FBS 2-1

2

4

5

6

11

10

9

3

1FBS Parameters(tffbs0100s000)

Budget Distribution(tffbs0101m000)

Budget DistributionData by Period

(tffbs0102m000)

Budgets(tffbs0503m000)

Generate Budget Distribution Data by Period

(tffbs0202m000)

Budgets by Year(tffbs0505m000)

Copy Budgets(tffbs1202m000)

Budget Defaults by LedgerAccount/Dimension

(tffbs0504m000)

Budget Amounts andQuantities per Year

(tffbs1500m000)

Rebuild Sublevels(tffbs1204m000)

Recalculate Budget Databased on Actual Data

(tffbs1205m000)

Budget Amounts andQuantities by Period

(tffbs1101m000)

Compare Budgets(tffbs1203m000)

Delete/ArchiveBudgets

(tffbs1201m000)

Print Budget Amountsand Quantities

(tffbs1400m000)

7

12

14

15

13

16

Relations betweenLedger Accounts(tffbs0121m000)

8

Figure 4, The multi dimension budgeting procedure



The procedure consists of the following steps:

Step 1 FBS Parameters (tffbs0100s000)

All the parameters for the FBS module are stored in this session. You can usethese parameters to indicate how you want to work with the Financial BudgetSystem (FBS) module. You must fill the default home currency.

Step 2 Budget Distribution (tffbs0101m000)

In the optional Budget Distribution (tffbs0101m000) session, distribution codesare maintained to distinguish between methods of distributing budget amountsover a number of periods. Define budget distribution codes with the twodifferent distribution methods: percentage or factor.

Step 3 Generate Budget Distribution Data per Period (tffbs0202m000)

This optional session can be used to define a scheme to distribute budgetamounts and budget quantities over the defined number of distribution periods.

Step 4 Budget Distribution Data by Period (tffbs0102m000)

The percentages or factors, which apply to the respective periods, aremaintained per distribution code in this optional session.

Step 5 Budgets (tffbs0503m000)

Budget characteristics such as number of budget periods, type of budget, linkwith ledger accounts and the dimension types used are maintained in thissession. A budgeting method can be linked to the budget and othercharacteristics such as a link with ledger accounts and the dimension types usedare maintained.

You can choose between single dimension budgets and multi dimensionbudgets. For single dimension budgets cost analysis, flexible budgeting bymeans of performance budgets and cost allocation can be carried out, but onlyone dimension of one type can be used. For the multi dimension budgets all fivedimension types can be used in combination, whereas flexible budgeting andcost allocation is not possible.

You can choose between methods of calculating budgets, bottom-up or top-down. Single dimension budgets are always bottom-up budgets.

If a budget is calculated bottom-up the budget amounts are registered by ledgeraccount and dimension on sublevel 0. BaanERP automatically calculates theapplicable amounts on higher sublevels according to the GLD hierarchies.

Step 6 Budgets by Year (tffbs0505m000)

With this Budgets by Year (tffbs0505m000) session you can define the budgetattributes, that belong to a budget year with the parent budget, the budgetcurrencies, its relation with home currencies and the definitive status.



Step 7 Budget Defaults by Ledger Account/Dimension (tffbs0504m000)

Default distribution codes can be defined in this optional session for a ledgeraccount, or dimension. It is also possible to do this for a combination of ledgeraccount and dimension(s).

This data is used as a default value in the Budget Amounts and Quantities perYear (tffbs1500m000) session.

Step 8 Relations between Ledger Accounts (tffbs0121m000)

You can define dependencies between ledger accounts expressed in apercentage with this optional Relations between Ledger Accounts(tffbs0121m000) session.

This functionality is used to calculate the amount of target ledger accountsbased on budgets on the budgeted amounts of source ledger accounts during thebudgeting process.

Step 9 Copy Budgets (tffbs1202m000)

In this optional Copy Budgets (tffbs1202m000) session it is possible to copy abudget or actual data (amounts and quantities) into another budget. If thebudgeting method is bottom-up, only ledger accounts and dimensions atsublevel 0 will be copied. If the target budget has a bottom-up budgetingmethod, than budgets at higher sublevels are rebuilt.

It is not possible to copy from a multi dimension budget to a single dimensionbudget.

Step 10 Budget Amounts and Quantities by Year (tffbs1500m000)

In this session budget amounts and quantities for multi dimension budgets canbe entered. In case of a bottom-up budget you cannot enter budget amounts andquantities for ledger accounts and/or dimensions with a sublevel greater than 0.The different periodic distribution modes can be used.

Step 11 Rebuild Sublevels (tffbs1204m000)

To rebuild budgets for the ledger accounts and dimensions structure defined inthe General Ledger (GLD) module, you can use this optional Rebuild Sublevels(tffbs1204m000) session. You can only rebuild bottom-up budgets.

Step 12 Recalculate Budget Data based on Actual Data (tffbs1205m000)

The budget amounts can be recalculated during the year with this optionalRecalculate Budget Data Based on Actual Data (tffbs1205m000) session byusing the actual data in the General Ledger module.

Step 13 Budget Amounts and Quantities by Period (tffbs1101m000)

In this session the budget amounts and quantities can be maintained by period incase the periodic distribution mode is not applicable.

The total amount of all periods together will match in the Budget Amounts andQuantities per Year (tffbs1500m000) session.



Step 14 Print Budget Amounts and Quantities (tffbs1400m000)

In this optional session budget amounts and quantities by year or by year andperiod in selected range can be printed.

Parent-child relations of budgets can be taken into account.

Step 15 Compare Budgets (tffbs1203m000)

Use this optional session to compare budget amount and quantities between abase budget and a comparison budget in terms of percentages and amounts.

You can compare other multi dimension budgets or single dimension budgets.

Step 16 Delete/Archive Budgets (tffbs1201m000)

This optional session can be used to archive budget data with the necessarymaster data or to delete budget data.

BaanERP deletes successfully archived budget data except for master budgetdata.



n The single dimension budget proceduren The sessions that are related to the single dimension budget proceduren The optional sessions that can be used

3.1 To carry out the single dimension budget procedure

You can use the single dimension budgeting procedure to carry out manyaspects of a single dimension budget, based on the performance of a cost center(dimension), in a budgeting system. This allows you to set up a flexibleperformance-dependant budget.

You can define:

n Reference units, which are performance measures of a cost center and forma calculation base to determine rates and surcharges

n Performance budget

n Single dimension budgets

n Allocation relations, to which a budgeted or actual amount are charged

n The integration of rates/surcharges into the CPR module and/or into thePCS module

The budgeting procedure consists of the steps necessary for defining andexamining financial budgets. The steps cover the definition of the budgets, andthe distribution of the budget amounts over the budget periods.

3. The single dimension budget procedure

The single dimensionbudget procedure’sresult s

The single dimension budget procedure


Figure 5 shows the steps in the procedure for defining single dimensionbudgets. To complete budgeting, you must at least carry out the mandatorysteps of the following procedure.

FBS 2-3

FBS Parameters(tffbs0100s000)

Budgets(ttffbs0503m000)

Budgets by Year(tffbs0505m000)

Budget Defaults by LedgerAccount/Dimension

(tffbs0504m000)

Ledger Account Structureby Dimension

(tffbs0120m000)

1

4

7

8

Reference Units(tffbs0530m000)

Performance Budgets by Year

(tffbs1120m000)

9

10

11

13

16

Copy Ledger AccountStructure by Dimension

(tffbs0220m000)

Relations betweenLedger Accounts(tffbs0121m000)

Copy Budgets(tffbs1202m000)

12

Budget Distribution(tffbs0101m000)

Budget Distribution Databy Period

(tffbs0102m000)

5

6

Generate Budget Distribution Data by Period

(tffbs0202m000)

Single Dimension Budget byPeriod

(tffbs1111m000)20

Integration Scheme for CostPrice Calculation(tffb1130s000)

Defaults for Cost PriceCalculation

(tffbs1131s000)

Integrate Budget OperationRates

(tffbs1230m000)

Integrate Budget Surcharges(tffbs1231m000)

A

21

22

23

24

Single Dimension Budget byYear

(tffbs1510m000)

Performance Budget byPeriod

(tffbs1121m000)

19

18

Effective Rates byReference Unit(tffbs1112s000)

Copy Budget Cost Rates intoEffective Rates(tffbs1210m000)

Compare Budgets(tffbs1203m000)

Delete/Archive Budgets(tffbs1201m000)

29

31

30

32

B

17

Chart of Accounts(tfgld0508m000)

Dimension Master(tfgld0510m000)

Cost Categories(tfcat0102m000)

Ledger Accounts byCost Category

(tfcat0103m000)

14

15

2

3

Figure 5, The single dimension budgeting procedure



The single-dimension budget-procedure consists of the following steps.


All the parameters for the FBS module are stored in this session. You can usethese parameters to indicate how you want to work with the Financial BudgetSystem (FBS) module. Here you define, whether you want to maintain effectiverates or not.

Step 2 Chart of Accounts (tfgld0508m000)

In the Chart of Accounts (tfgld0508m000) session you can list ledger accounts,which you can define and modify in the Chart of Accounts (tfgld0108s000)details session.

Step 3 Dimension Master (tfgld0510m000)

In the Dimension Master (tfgld0510m000) session you can list the dimensions.

Step 4 Budget Distribution (tffbs0101m000)

In the Budget Distribution (tffbs0101m000) session, distribution codes aremaintained to distinguish between methods of distributing budget amounts overa number of periods. Define budget distribution codes with the two differentdistribution methods: percentage or factor.

Step 5 Generate Budget Distribution Data by Period (tffbs0202m000)

This optional session can be used to define how to distribute budget amountsand budget quantities over the defined number of distribution periods.

Step 6 Budget Distribution Data by Period (tffbs0102m000)

In this session you can maintain the percentages or factors that apply to therespective periods per distribution code.

Step 7 Budgets (tffb0503m000)

Budget characteristics are maintained in this session. A budgeting method islinked to the budget and other characteristics such as a link with ledgeraccounts. The used dimension types are also maintained.

Here you must select the single dimension budget option. The field link withthe ledger account is mandatory for single dimension budgets.


With this Budgets by Year (tffbs0505m000) session you can define the budgetattributes that belong to a budget year together with the parent budget, the homecurrencies, comparison budget and definitive status.

Step 9 Budget Defaults by Ledger Account/Dimensions (tffbs0504m000)

You can use this optional session to define the default distribution code,variability and base rate by (combination of) ledger account or dimension or onthe top level.



Step 10 Ledger Account Structure by Dimension (tffbs0120m000)

In this optional session you can define a ledger account structure or a budgetstructure. This can be used as a model in both the Single Dimension Budget byYear (tffbs1510m000) session and the Single Dimension Budget by Period(tffbs1111m000) session.

Step 11 Copy Ledger Account Structure by Dimension (tffbs0220m000)

To copy ledger account structures from a dimension to another dimension or toa range of dimensions of the same dimension type, you can use this optionalCopy Ledger Account Structure by Dimension (tffbs0220m000) session.

Step 12 Relations between Ledger Accounts (tffbs0121m000)

You can define dependencies between ledger accounts expressed as apercentage with this optional Relations between Ledger Accounts(tffbs0121m000) session.

This functionality is used to calculate the number of target ledger-accounts-based budgets on the budgeted amounts of source ledger-accounts.

Step 13 Reference Units (tffbs0530m000)

In the Reference Units (tffbs0530m000) session reference units can be definedper dimension. You can define amount-based or quantity-based reference unitsthat will respectively result in surcharges or rates. The planning type can also bedefined: retrograde or progressive. In case of retrograde planning type, theperformance budgets are generated/backflushed during the allocation process,otherwise the performances must be entered manually.

The link with logistics or GLD data can be set, which is useful in order tocollect actual performance quantities from BaanERP with the Import ActualPerformance (tfcat2220m000) session.

Step 14 Cost Categories (tfcat0102m000)

In this optional Cost Categories (tfcat0102m000) session you can maintain costcategories. They are used for grouping ledger accounts.

Step 15 Ledger Accounts by Cost Category (tfcat0103m000)

In the optional Ledger Accounts by Cost Category (tfcat0103m000) session youcan maintain ledger accounts that belong to a cost category. To every ledgeraccount a percentage must be entered, which indicates which portion of theamounts belongs to this cost category.

You can also import ledger accounts from the General Ledger (GLD) module.

A cost category can be used in the Allocation Relations (tfcat4500m000)session to limit the cost that is to be allocated from, for example, one cost centerto another cost center. In this session only the (percentage of the) costs thatbelongs to a selected cost category are allocated.



Step 16 Copy Budgets (tffbs1202m000)

In this optional Copy Budgets (tffbs1202m000) session you can copy a budgetor actual data (amounts and quantities) into another budget. You can also copythe allocation relations and secondary costs.

It is not possible to copy from a multi dimension budget to a single dimensionbudget.

Step 17 Performance Budget by Year (tffbs1120m000)

You can use this Performance Budget by Year (tffbs1120m000) session todefine the performance budget by defining the performance quantity orsurcharge base amount per year, depending on whether the reference-unit typeis quantity-based or amount-based.

In case of retrograde planning type (only for quantity-based reference units)quantities are automatically backflushed afterwards when you define allocationrelations.

Step 18 Performance Budget by Period (tffbs1121m000)

In the Performance Budget by Period (tffbs1121m000) session you canmanually enter or change the performance budget by period, as long as theperiodic distribution mode in the respective Performance Budget by Year is notselected. Otherwise only overviews are possible.

Step 19 Single Dimension Budget by Year (tffbs1510m000)

You can define budget amounts by reference unit and by ledger account. Thesebudget amounts can be split up into variable and fixed portions, indicated by thevariability.

The budget amounts of secondary costs are determined afterwards during theallocation process. You can start the Allocation Relation (tfcat4500m000)session when you select a budget with a secondary debit/credit ledger account.

You can also view the sum of fixed, variable, and total budget amounts, budgetcost-rates and surcharges.

Step 20 Single Dimension Budget by Period (tffbs1111m000)

You can use this Single Dimension Budget by Period (tfffbs1111m000) sessionto manually define budget and quantities by periods. This is only allowed ifdistribution mode is not selected. If this is the case a zero budget must first bedefined in the Single Dimension Budget by Year (tffbs1100s000) session.

Step 21 Integration Scheme for Cost Price Calculation (tffbs1130s000)

Use this optional session to define an integration scheme by adimension/reference unit for a logistic company, as defined in the GeneralLedger (GLD) module. In case of quantity-based reference-units, you can definethe related operation rate and optionally a PCS project. In case of amount-basedreference-units you can define the related item group, item, warehouse or PCSproject for integration of surcharge portions.



This data is used to integrate the rates/surcharges into the Cost Price Calculation(CPR) module and/or project surcharges to the Project Control (PCS) module inBaanERP.

Step 22 Defaults for Cost Price Calculation (tffbs1131s000)

With the Defaults for Cost Price Calculations (tffbs1131s000) session you candefine defaults for dimensions and/or reference units on several levels. You candefine the cost component of the rates/surcharges concerned and which part,variable or fixed, must be integrated.

Step 23 Integrate Budget Operation Rates (tffbs1230m000)

Budgeted or effective cost-rates can be integrated into the Operation Rate tableof the Cost Price Calculation (CPR) module by this Integrate Budget OperationRates (tffbs1230m000) session.

Step 24 Integrate Budget Surcharges (tffbs1231m000)

You can integrate budgeted or effective cost surcharges in the Cost PriceCalculation (CPR) module and/or project surcharges into the Project Control(PCS) module with this session.

These surcharges can be based on fixed costs and variable costs.



3.2 To use other optional sessions in the singledimension budgeting procedure

You can use the following other optional sessions in the single-dimensionprocedure.

Hierarchy (tffbs0510m000)

Hierarchy for Dimensions(tffbs0112m000)

Copy Chart of AccountsStructure in a Hierarchy for

Ledger Accounts(tffbs0211m000)

Delete Hierarchy (tffbs0210m000)

33

35

36

37

38Copy Dimensions into

Hierarchy for Dimensions (tffbs0212m000)

Copy Hierarchy(tffbs0213m000)

Hierarchy for Ledger Accounts

(tffbs0111m000)

Report Structuresby Dimension Type

(tffbs0140m000)

Report Structure Lines

(tffbs0141m000)

Summation Rules forReport Structure lines

(tffbs0142m000)

39

40

41

42

Print Budget Cost AllocationSheet

(tffbs1413m000)

Print Budget Cost AllocationComparison Sheet by Year

(tffbs1414m000)

43

44

A

34

Allocation Relations(tfcat4500m000)

Price Iteration(tfcat4210m000)

Integration of IterationResults

(tfcat4211m000)

25

26

27

B

Retrograde Calculation(tfcat4213m000)

28

Figure 6, Other optional sessions in the Single Dimension Budgeting Procedure

Step 25 Allocation Relations (tfcat4500m000)

With the optional Allocation Relations (tfcat4500m000) session you candefine/modify the details for the budget year and actual allocation relations.

Budget-period relations are automatically filled and can only be modified. Youcannot modify budget relations with a definitive budget.



Step 26 Retrograde Calculation (tfcat4213m000)

The optional Retrograde Calculation (tfcat4213m000) session can be used torecalculate the performance quantities of retrograde reference units and to adjustthe required quantity of the allocation relations according to the destinationvariability.

Step 27 Price Iteration (tfcat4210m000)

The optional Price Iteration (tfcat4210m000) session can be used to calculatethe exact rate for the budget year or the budget period based on the allocationrelations of the budget concerned. With this session, the precise secondary costsare determined. This iterative method is necessary especially in case of cyclicallocation graphs.

You cannot iterate prices for the budget year and budget the period allocationrelations of a definitive budget.

Step 28 Integration of Iteration Results (tfcat4211m000)

To integrate the results of the iteration process into the applicable budget youmust run the optional Integration of Iteration Results (tfcat4211m000) session.With this session the secondary costs are integrated to the single dimensionbudget concerned.

BaanERP cannot integrate the results of budget relations with a definitivebudget.

Step 29 Effective Rates by Reference Unit (tffbs1112s000)

At this point, the optional Effective Rates by Reference Unit (tffbs1112s000)session can be used to define/modify effective rates and surcharges perreference unit. Effective rates are also often called political prices, because theyare not the result of the analytical budgeting approach, but of a managementdecision to use those rates.

BaanERP can only run this session if you have selected the Use Effective Ratescheck box in the FBS Parameters (tffbs0100s000) session.

If the effective rates per reference unit changes, all effective rates for all ledgeraccounts under the specified reference unit and budget are recalculatedaccordingly.

Step 30 Copy Budget Cost Rates into Effective Rates (tffbs1210m000)

You can use this session to overwrite the manually maintained effectiverates/surcharges with the calculated rates.

The calculated rates are from the given range of the budgets in the SingleDimension Budget by Year (tffbs1110s000) session.

Step 31 Compare Budgets (tffbs1203m000)

Use this optional session to compare a single dimension budget with anothersingle dimension budget or a multi dimension budget.




This optional session can be used to archive budget data with the necessarymaster data or to delete budget data.

BaanERP successfully deletes archived budget data except for master budgetdata.

Step 33 Hierarchy (tffbs0510m000)

Use the Hierarchy (tffbs0510m000) session to define the hierarchy code and thedimension types that are applicable.

Step 34 Copy Dimensions into Hierarchy for Dimensions(tffbs0212m000)

With this session you can copy dimensions of the existing General Ledger(GLD) dimension structure into an empty hierarchy for dimensions.

Step 35 Hierarchy for Dimensions (tffbs0112m000)

In the Hierarchy for Dimensions (tffbs0112m000) session the hierarchystructure for the dimensions can be modified or defined in a bottom-up manner.

The defined hierarchies are used to control the budget amounts and actualamounts in the Financial Budget System (FBS) module and Cost Accounting(CAT) module, and particularly in the Hierarchical Analysis with HyperionOLAP business object.

Step 36 Copy Chart of Accounts structure in a Hierarchy for Ledgeraccounts (tffbs0211m000)

In this session ledger accounts of the existing ledger-account structure(statutory/complementary) can be copied into an empty hierarchy for ledgeraccounts.

Step 37 Hierarchy for Ledger Accounts (tffbs0111m000)

At this point the ledger-account hierarchy-structure can be modified or defined.The structure must be defined bottom-up, which means the lowest sublevelmust be first.

Step 38 Copy Hierarchy (tffbs0213m000)

Use the Copy Hierarchy (tffbs0213m000) session to copy a hierarchy, or a partof a hierarchy, to another hierarchy. You can copy a dimension structure or aledger account structure separately or together.

Only the dimensions of the applicable dimension types of the target hierarchywill be copied.

Step 39 Delete Hierarchy (tffbs0210m000)

You can use the Delete Hierarchy (tffbs0210m000) session to delete an existinghierarchy, or a part of a hierarchy such as ledger accounts or dimensions withinthe specified hierarchy.



Step 40 Report Structures by Dimension Type (tffbs0140m000)

The report structure codes and the hierarchy that should belong to that reportstructure can be defined in this Report Structures by Dimension Type(tffbs0140m000) session. A report structure is needed to print budget or actualallocation sheets. The hierarchy defined in the FBS parameter is the default.

Step 41 Report Structure Lines (tffbs0141m000)

Use the Report Structure Lines (tffbs0141m000) session to define ledgeraccount lines and the sum of report lines. The ledger accounts will be printed inthis order, with the defined (sub) totals. In the next step you can define whichledger-account ranges must be accumulated.

Step 42 Summation Rules for Report Structure Lines (tffbs0142m000)

In the Summation Rules for Report Structure Lines (tffbs0142m000) sessionyou can define for which ranges the amounts must be taken into account andreported as a total.

Step 43 Print Budget Cost Allocation Sheet (tffbs1413m000)

Use this session to print the cost allocation sheet by year or by period. Thissession uses the defined report structure and hierarchy linked to that reportstructure.

Step 44 Print Budget Cost Allocation Comparison Sheet by Year(tffbs1414m000)

Use this session to print the budget cost-allocation comparison sheet for twobudgets. You can only print this report per year.



n The activity-based budgeting proceduren The sessions that are related to the activity-based budgeting procedure

4.1 To carry out the activity-based budgeting procedure

You can use the activity-based budgeting procedure to carry out all the aspectsof an activity-based budget in a budgeting system.

The activity-based budgeting procedure consists of the steps necessary to defineand examine activity-based budgets. The steps cover:

n The definition of the budgetsn The distribution of the budget amounts over the budget periodsn The definition of allocation relationsn The generation of a bill of activitiesn The analysis of the activity-based budgeting

4. The activity-based budgeting procedure

The activity-basedbudgeting procedure’sresult s

The activity-based budgeting procedure


Figure 7 shows the steps in the procedure for defining activity-based budgets.To complete an activity-based budget, you must at least carry out the mandatorysteps of the following procedure.

FBS 2-4

Activity Status(tfcat5100m000)

Copy Activity Dimensionsinto Activity Status table

(tfcat5200m000)

Reference Unitsper Dimension

(tffbs0530m000)

Performance Budget by Year

(tffbs1120m000)

Print Activity Status(tfcat5400m000)




(tfcat4211m000)

1

5

6

7

12

13

16

17

18

14

Performance Budgetby Period

(tffbs1121m000)

Single DimensionBudget by Year(tffbs1510m000)

Generate Bill ofActivities

(tfcat5201m000)

15

26

Integration Scheme for CostPrice Calculation(tffbs1530m000)

Defaults for CostPrice Calculation(tffbs1531m000)

Integrate Budget OperationRates

(tffbs1230m000)

Integrate Budget Surcharges(tffbs1231m000)

Delete/ArchiveBudgets

(tffbs1201m000)27

25

24

23

22

Cost accounting Parameters

(tfcat0100m000)

FBS parameters(tffbs0100s000)

4

Budgets(tffbs0503m000)

Budgets by Year(tffbs0505m000)8

9

Single DimensionBudget by Period(tffbs1111m000)

19

Bill of Activities(tfcat5501m000)

Print Activity Results(tfcat5402m000)

20

21

Effective Rates by ReferenceUnit

(tffbs1112s000)

Copy Budget Cost Rates intoEffective Rates

(tffbs1210m000)

28

29

Chart of Accounts(tfgld0508m000)

Dimension Master(tfgld0510m000)



(tfcat0103m000)

10

11

2

3

Figure 7, The activity based budgeting procedure



The activity-based budgeting procedure consists of the following steps:


All the parameters for the FBS module are stored in this session. You can usethese parameters to indicate how you want to work with the Financial BudgetSystem (FBS) module.

Step 2 Chart of Accounts (tfgld0508m000)

In the Chart of Accounts (tfgld0100m000) session you can list ledger accountswhich you can define and modify in the Chart of Accounts (tfgld0108s000)session.

Step 3 Dimension Master (tfgld0510m000)

In the Dimension Master (tfgld0510m000) session you can list the dimensions.

Step 4 Cost Accounting Parameters (tfcat0100m000)

In the Cost Accounting Parameters (tfcat0100m000) session you can define orverify the dimension types that are used for activities.

Step 5 Activity Status (tfcat5100m000)

To add new activities you have to define the activities as dimensions and list theactivity dimension type in the Dimension Master (tfgld0510m000) session. Youmust then start this Activity Status (tfcat5100m000) session. You must definewhether the activity is a value-added activity or not.

Step 6 Copy Activity Dimensions into Activity Status table(tfcat5200m000)

With the Copy Activity Dimensions into Activity Status Table (tfcat5200m000)session you can copy a range of dimensions of the activity dimension type intoactivity statuses. The default is a non-value adding activity.

The activity dimension type is defined in the Cost Accounting Parameters(tfcat0100s000) session.

Step 7 Budgets (tffbs0503m000)

Budget characteristics are maintained in this Budgets (tffbs0503m000) session.A distribution method can be linked to the budget and to other characteristicssuch as a link with ledger accounts. The dimension types used are alsomaintained.

You must select the Single Dimension Budget option. The field link with theledger account is mandatory for single dimension budgets.


With this Budgets by Year (tffbs0505m000) session you can define the budgetsthat belong to a budget year with the parent budget, the home currencies, thecomparison budget and the definitive status.



Step 9 Reference Units per Dimension (tffbs0530m000)

At this point reference units that belong to the activities must be created. Theallocation model normally deals with resources or cost centers, activities,processes and cost objects. For the activities and cost objects reference units(cost drivers) with a link to logistics are usually defined. For cost objects thereference units must be quantity-based and of the Rate type in order to have anamount surcharge.


In this optional Cost Categories (tfcat0102m000) session you can maintain costcategories. They are used for grouping ledger accounts.


In this optional Ledger Accounts by Cost Category (tfcat0103m000) sessionyou can maintain ledger accounts that belong to a cost category. A percentagemust be entered to every ledger account that indicates which portion of theamount belongs to this cost category.


A cost category can be used in the Allocation Relations (tfcat4500m000)session to limit the cost to be allocated from, for example, one cost center toanother cost center. In that session only the (percentage of the) costs that belongto a selected cost category are allocated.

Step 12 Performance Budget by Year (tffbs1120m000)

You can use this Performance Budget by Year (tffbs1120m000) session todefine the performance budget by defining the performance quantity orsurcharge base amount per year, depending on whether the reference unit type isquantity-based or amount-based.

In case of Retrograde planning type (only for quantity-based reference units)quantities are automatically backflushed afterwards when you define allocationrelations.

Step 13 Performance Budget by Period (tffbs1121m000)

In the Performance Budget by Period (tffbs1121m000) session you canmanually enter or change the performance budget by period, as long as thePeriodic Distribution Mode in the respective Performance Budget by Year is notselected. Otherwise only overviews are possible.

Step 14 Single Dimension Budget by Year (tffbs1510m000)

You can define budget amounts per reference unit and per ledger account.Variability can also be defined to have variance analysis.

The secondary costs’ budget amounts are determined afterwards during theallocation process. You can start the Allocation Relations (tfcat4500m00)session when you select a budget with a secondary debit/credit ledger account.



It is also possible to view the sum of fixed, variable, and total budget amounts,budget cost-rates and surcharges.

Step 15 Single Dimension Budget by Period (tffbs1111m000)

You can use this Single Dimension Budget by Period (tfffbs1111m000) sessionto manually define budget and quantities by periods. This is only possible if thePeriodic Distribution Mode check box is not selected. If this is so, a zerobudget must first be defined in the Single Dimension Budget by Year(tffbs1110s000) session.


With the optional Allocation Relations (tfcat4500m000) session you can define/modify the details for the budget year and the actual allocation relations.

Budget period relations are automatically filled and can only be modified. Youcannot modify budget relations with a definitive budget.


The optional Price Iteration (tfcat4210m000) session can be used to calculatethe exact rate for the budget year or the budget period based on the allocationrelations of the budget concerned. With this session the precise secondary costsare determined. This iterative method is necessary especially in case of cyclicallocation graphs.

You cannot iterate prices for the budget year and for the budget-periodallocation-relations of a definitive budget.


To integrate the results of the iteration process into the applicable budget, youmust run the optional Integration of Iteration Results (tfcat4211m000) session.With this session the secondary costs are integrated into the single dimensionbudget concerned.

BaanERP cannot integrate the results of budget relations with a finalizedbudget.

Step 19 Generate Bill of Activities (tfcat5201m000)

The bill of activities for the particular budget year and the budget-periodactivity budgets can be generated with this Generate Bill of Activities(tfcat5201m000) session based on the defined budget year/budget periodallocation relations.

Step 20 Bill of Activities (tfcat5501m000)

You can use the Bill of Activities (tfcat5501m000) session to view thegenerated bill of activities. You can view the consumption rate (percentage), forexample, the percentage to which a destination dimension consumes a certainactivity. You can view the bill in two ways, namely by dimension (destinationrelation) or by activity (source relation).



Step 21 Print Activity Results (tfcat5402m000)

With the Print Activity Results (tfcat5402m000) session you can print ananalysis of the costs of performing activities on dimensions.

Step 22 Integration Scheme for Cost Price Calculation(tffbs1530m000)

Use this session to define an integration scheme by a dimension/reference unitfor a logistic company defined in the General Ledger (GLD) module. In case ofamount-based reference units, you can define the related Operation Rate or PCSProject. In case of quantity-based reference units, you can define the relateditem group, item, warehouse or PCS Project.

This data is used to integrate the rates/surcharges into the Cost Price Calculation(CPR) module or the Project Control (PCS) module in BaanERP.

Step 23 Defaults for Cost Price Calculation (tffbs1531m000)

With the Defaults for Cost Price Calculation (tffbs1531m000) session you candefine, on several levels, defaults for dimension and/or reference units. You candefine the cost component of the rates/surcharges concerned and which part,variable or fixed, must be integrated.

Step 24 Integrate Budget Operation Rates (tffbs1230m000)

Use the Integrate Budget Operation Rates (tffbs1230m000) session to integratebudgeted cost rates for a single dimension budget into the Cost PriceCalculation (CPR) module.

Step 25 Integrate Budget Surcharges (tffs1231m000)

You can integrate effective cost surcharges in the Cost Price Calculation (CPR)module and/or in the Project Control (PCS) module with this session.

These surcharges can be based on fixed costs and variable costs. The singledimension budget reference units of Amount type can only have the Surchargevalue defined as a link with the CPR module in the Reference Units(tffbs0530m000) session.



4.2 To use optional sessions in the activity-basedbudgeting procedure

You can use the following optional sessions in the activity-based budgetingprocedure:

Step 26 Print Activity Status (tfcat5400m000)

You can use the optional Print Activity Status (tfcat5400m000) session to printthe activity status for a selected range.


This optional session can be used to archive budget data with the necessarymaster data or to delete budget-data.

BaanERP successfully deletes archived budget-data except for master budget-data.

Step 28 Efffective Rates by Reference Unit (tffbs1112s000)

At this point, the optional Effective Rates by Reference Unit (tffbs1112s000)session can be used to define effective rates and surcharges per reference unit.

BaanERP can only run this session if you have selected the Use effective ratescheck box in the FBS Parameters (tffbs0100s000) session.

If the effective rates per reference unit changes, all effective rates for all ledgeraccounts under the specified reference unit and budget are recalculated.

Step 29 Copy Budget Cost Rates into Effective Rates (tffbs1210m000)

Use this session to manually overwrite the maintained effective rates/surchargeswith the calculated rates.

The calculated rates are from the range of budgets given in the SingleDimension Budget by Year (tffbs1110s000) session.



n The single dimension controlling proceduren The sessions that are related to the single dimension controlling procedure

5.1 To carry out a single-dimension controlling-procedure

You can use the single-dimension controlling-procedure to:

n Set up the actual datan Analyze the actual data compared with the budgeted datan Integrate the actual rates and surcharges into CPR/CPS

The results of the single dimension controlling-procedure are:

n Importing of, and possibly maintenance of actual performances from GLDand HRA

n Importing of actual costs from GLD and definition of actual allocationrelations

n Calculation of the actual secondary costs during the iteration process

n Integration of iteration results to CAT and GLD

n Calculation of allowed costs and deviations

n Posting of deviations to GLD

n Reporting of the results

n Integration of actual rates/surcharges into CPR and/or project surcharges toPCS

5. The single-dimension controlling-procedure

The single dimensioncontrolling procedure’sresult s

The single-dimension controlling-procedure


Figure 8 shows the steps in the procedure. To complete a single-dimensioncontrolling-procedure, you must at least carry out the mandatory steps of thefollowing procedure.

2

4

5

3

1

Cost Accounting Parameters

(tfcat0100s000)


Accounting Scheme forOperation Results(tfcat0504m000)

Integration Relations with HRA

(tfcat2521m000)

Import Actual Performances(tfcat2220m000)

Actual Performances(tfcat2120m000)

6

Import Actual Costsfrom GLD

(tfcat2210m000)

Actual Costs by Dimension(tfcat2511m000)

7

9

Actual Costs by Reference Unit

(tfcat2510m000)

Copy Budget Period AllocationRelations into Actuals

(tfcat4200m000)

19

Allowed Costs andDeviations

(tfcat2540m000)

Derive Allowed Costs andDeviations

(tfcat2240m000)

20Post Uncharged Costs

(tfcat2840m000)

Integrate ActualOperation Rates(tfcat2230m000)17

Integrate ActualSurcharges

(tfcat2231m000)18


(tfcat0103m000)

Allocation Relations(tfca4500m000)10


Calculated Rates byLedger Account(tfcat4512m000)

Integrate Iteration Results(tfcat4211m000)

Finalization Run Numbers(tfgld1519m000)

Clear Iteration Tables(tfcat4212m000)

12

Print Actual Cost AllocationSheet

(tfcat2480m000)

11

13

8

23

14

15 16

21

22

Single Dimension Budgeting

Figure 8, The single dimension controlling procedure



The procedure consists of the following steps:

Step 1 Cost Accounting Parameters (tfcat0100s000)

In the Cost Accounting Parameters (tfcat0100s000) session you can maintainthe parameters for the Cost Accounting (CAT) module. These parameters arefundamental to the whole module.


In the optional Cost Categories (tfcat0102m000) session you can maintain costcategories.


In the optional Ledger Accounts by Cost Category (tfcat0103m000) session youcan maintain ledger accounts that belong to a cost category. A percentage,which indicates portion of the amount belongs to the cost category forms part ofevery ledger account.


A cost category can be used in the Allocation Relations (tfcat4500m000)session to limit the cost to be allocated from, for example, one cost center toanother cost center. In that session only the (percentage of the) costs thatbelongs to a selected cost category will be allocated.

Step 4 Accounting Scheme for Operation Results (tfcat0504m000)

Use this session to define the contra (destination) accounts/dimensions to whichthe deviations and fixed costs (only in a variable cost accounting system) willbe posted for the purpose of establishing a statement of operating results. Youcan define an accounting scheme for each cost portion.

Step 5 Integration Relations with HRA (tfcat2521m000)

At this step you can define the integration relations with HRA. Relations fordimensions/reference units for machine hours and employee hours must bedefined separately. The integration relations are used in the Import ActualPerformances (tfcat2220m000) session.

This step is only applicable if the HRA module is implemented.

Step 6 Import Actual Performances (tfcat2220m000)

With this optional session you can import quantities from logistic modules,GLD, HRA and the Performance Budget by Period (tffbs1121m000) session inFBS. You can select a range of dimensions and reference units for which theactual performances must be imported.

Step 7 Actual Performances (tfcat2120m000)

In the Actual Performances (tfcat2120m000) session you can enter/modify theactual performances by dimension/reference-unit combination.



Step 8 Import Actual Costs from GLD (tfcat2210m000)

At this point you can import actual cost from the General Ledger (GLD) moduleby period.

Step 9 Copy Budget Period Allocation Relations into Actuals(tfcat4200m000)

You can use this optional session to copy the allocation relations from budget-period allocation-relations to an actual-period allocation-relation. You canspecify whether the valuation must be done based on the budgeted or actualfigures. This copying functionality is useful to speed up the process of definingactual allocation graphs.

BaanERP updates the actual performance during the copying process.


The Allocation Relations (tfcat4500m000) session can be used to enter ormodify the details for actual allocation-relations.


The Price Iteration (tfcat4210m000) session must be executed to determine theexact allocation costs and rates as valuation for the allocation-relations. Use thetermination criteria, number of steps/deviation of rates to assess the accuracy ofthe secondary costs to be calculated.

You cannot iterate prices for budget year and budget period prices with adefinitive budget.

Step 12 Calculated Rates by Ledger Account (tfcat4512m000)

You can use this session to display the calculated rates per ledger accountfollowing the Price Iteration (tfcat4210m000) session.

Step 13 Integrate of Iteration Results (tfcat4211m000)

The results of the price iteration can be integrated to GLD and CAT with thissession. This allows you to determine the secondary costs and credits.

If you post to GLD, you must have already defined the transaction type for theposting of allocation results in the Parameters Cost Accounting (tfcat0100s000)session.

Step 14 Finalization Run Numbers (tfgld1519m000)

This session can be used to list the finalization runs, whose details are displayedin the Finalization Run Number (tfgld1110m000) session. In this context thissession is used to finalize transactions in GLD, that were entered during step 13.

Step 15 Actual Costs by Dimension (tfcat2511m000)

You can use the Actual Costs by Dimension (tfcat2511m000) session to viewthe actual costs imported from the General Ledger (GLD) module and theallocated actual costs.



Step 16 Actual Costs by Reference Unit (tfcat2510m000)

You can use the Actual Costs by Reference Unit (tfcat2510m000) session toview the actual costs imported from the General Ledger (GLD) module and theallocated actual costs.

Step 17 Integrate Actual Operation Rates (tfcat2230m000)

The optional Integrate Actual Operation Rates (tfcat2230m000) session can beused to integrate the actual rates that are calculated automatically in step 6, 7and 8, into the operation rate in the Cost Price Calculation (CPR) module inBaanERP Manufacturing.

Step 18 Integrate Actual Surcharges (tfcat2231m000)

This optional session can be used to integrate the actual surcharges that arecalculated when you change actual costs and actual performances into the CPRmodule and/or project surcharges to the PCS module.

Step 19 Derive Allowed Costs and Deviations (tfcat2240m000)

With the Derive Allowed Costs and Deviations (tfcat2240m000) optionalsession you can determine the allowed costs and deviations.

BaanERP derives the allowed costs and deviations automatically for the actualbudget as indicated in the Company Parameters(tfgld0103s000) session. For allother budgets you can use this session to derive this data explicitly.

Step 20 Post Uncharged Costs (tfcat2840m000)

To post the uncharged costs for the actual budget to the General Budget (GLD)module you can use this optional Post Uncharged Costs (tfcat2840m000)session.

Uncharged costs are posted according to the scheme that is defined in theAccounting Scheme for Operating Results (tfcat0504m000) session.

Step 21 Allowed Costs and Deviations (tfcat2540m000)

The Allowed Costs and Deviations (tfcat2540m000) session can be used to listthe allowed costs and deviations.

BaanERP compares allowed figures, based on the budget, with the actual costs,and calculates the deviations.

Step 22 Print Actual Cost Allocation Sheet (tfcat2480m000)

Use this session to print the actual cost allocation sheet. You can print a rangeof periods by year and by dimension/reference unit.

The structure of the report is defined in FBS using the:

n Report Structure per Dimension Type (tffbs0140m000) sessionn Report Structure Lines (tffbs0141m000) sessionn Summation Rules for Report Structure Lines (tffbs0142m000) session



Step 23 Clear Iteration Tables (tfcat4212m000)

You can use this Clear Iteration Tables (tfcat4212m000) session to clear theprevious iteration results.

The corresponding calculated rates per ledger account are also deleted.



n The activity-based management proceduren The sessions that are related to the activity-based management procedure

6.1 To carry out the activity-based managementprocedure

You can use the activity-based management procedure to carry out all theaspects of activity-based budgeting and actual data. The procedure is also foranalyzing the activity results.

The results of the activity-based management procedure are:

n The budgeted data is definedn The actual data is definedn The results are reported

6. The activity-based management procedure

The activity-basedmanagementprocedure’s result s

The activity-based management procedure


Figure 9 shows the steps in the procedure. To complete the activity-basedmanagement procedure, you must at least carry out the mandatory steps in thefollowing procedure.

2

4

11

3

1Integration Scheme forCost Price Calculation

(tfcat1530m000)

Import Actual Performance(tfcat2220m000)

Import Actual Costs(tfcat2210m000)

Actual Costs byReference Unit(tfcat2510000)

Actual Performance(tfcat2120m000)

Integrate Actual OperationRates

(tfcat2230m000)

7

Activity Based Budgetingstep 1 thru 14




(tfcat4211m000)

12

6

5

8Generate Bill of Activities

(tfcat5201m000)

9 Bill of Activities(tfcat5501m000)

10 Print Activity Results(tfcat5402m000)

Integrate Actual Surcharges(tfcat2231m000)

13

Figure 9, Activity based management procedure



You must first follow step 1 thru 14 from the Activity-based budgetingprocedure as described in paragraph 4. After these steps, the procedurecontinues with the following steps:

Step 1 Integration Scheme for Cost Price Calculation(tfcat1530m000)

In this case this session can be used to:

n Define relations with logistics, for example, item/item-groupn Be able to import activity-based quantities, for example, numbers of sales

orders in which a certain item exists

In this context the scheme is not only used to prepare the integration ofoperation rates and surcharges to the cost price calculation, but also to filter theimported quantities from logistics in the Import Actual Performance(tfcat2220m000) session. Only those quantities are imported whose attributes,like item and item-group, are mentioned in the integration scheme.

Step 2 Import Actual Performance (tfcat2220m000)

You can use this session to import the actual performance from BaanERPLogistic. Depending on what is defined in the Reference Units (tffbs0530m000)session and the Integration Scheme for Cost Price Calculation (tffbs1530m000)session, the quantities for the performed activity-based performance will beimported.

You can select a range of dimensions and reference units for which the actualperformance in the given periods is updated.

Step 3 Actual performance (tfcat2120m000)

In the Actual Performance (tfcat2120m000) session you can manually modifythe actual performance by dimension/reference unit combination.

Step 4 Import Actual Costs from GLD(tfcat2210m000)

At this point you can import actual cost from the General Ledger (GLD) moduleby period.


With the Allocation Relations (tfcat450m000) session you can modify thedetails or add relations to the budget year and actual allocation-relation.

Budget-period relations are automatically filled and can only be modified. Youcannot modify budget relations with a finalized budget.


The Price Iteration (tfcat4210m000) session must be carried out to determinethe allocation rates.




The results of the price iteration can be integrated with this session. This allowsyou to determine the secondary cost and credits.

Step 8 Generate Bill of Activities (tfcat5201m000)

The bill of activities for the activities of the respective actual period can begenerated with this Generate Bill of Activities (tfcat5201m000) session, basedon the defined actual allocation relations.

Step 9 Bill of Activities (tfcat5501m000)

You can use the Bill of Activities (tfcat5501m000) session to view thegenerated bill of activities. You can view the consumption rate (percentage) thata destination dimension consumes of a certain activity. You can view the bill intwo ways, namely by dimension (destination relation) or by activity (sourcerelation).

Step 10 Print Activity Results (tfcat5402m000)

With the Print Activity Results (tfcat5402m000) session you can print ananalysis of the costs of performing activities on dimensions.

Step 11 Actual Costs by Reference Unit (tfcat2510m000)

You can use the Actual Costs by Reference Unit (tfcat2510m000) session toview the actual costs imported from the General Ledger (GLD) module.

Step 12 Integrate Actual Operation Rates (tfcat2230m000)

The optional Integrate Actual Operation Rates (tfcat2230m000) session can beused to integrate the actual rates that are calculated automatically in step 2, 3and 4 into the operation rate in the Cost Price Calculation (CPR) module inBaanERP Manufacturing.

Step 13 Integrate Actual Surcharges (tfcat2231m000)

This optional session can be used to integrate the actual surcharges, which thatare calculated when changing actual costs and actual performances’ into theCPR module and/or a project surcharge to the PCS module.

See also the procedure for single dimension controlling.

baanerp finance financial budget system and cost accounting€¦ · financial budget system and...

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