tolerance limits in budgeting during procurement of materials services

8/11/2019 Tolerance Limits in Budgeting During Procurement of Materials Services

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SAP DEVELOPER NETWORK |sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY| bpx.sap.com

2010 SAP AG 1

Tolerance Limits in Budgetingduring Procurement of Materials/Services

Applies to:

SAP Project System for Budgeting Tolerance limits with warning / error message - Version 6.0.

For more information, visit theSupplier Relationship Management homepage.

Summary

This Document describes the Tolerance Limits in Budgeting during procurement of Material or Services

Author: Ramalingeswara Rao Vengala

Company: Intelligroup Inc.

Created on:November 1st2010

Author Bio

Ramalingeswara Rao Vengala has a Bachelors degree in Engineering and worked as a Plant Managerbefore joined to SAP. He has been working as a Principal Consultant with Intelligroup Inc., USA. He hasexpertise in SAP Project System, Investment Management, Materials Management, WarehouseManagement, Document Management System and Easy DMS modules. He worked in many SAPimplementations and support Projects in India, Saudi Arabia, China, Egypt and USA.
https://www.sdn.sap.com/irj/sdn/bpx-srmhttps://www.sdn.sap.com/irj/sdn/bpx-srmhttps://www.sdn.sap.com/irj/sdn/bpx-srmhttps://www.sdn.sap.com/irj/sdn/bpx-srm


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Tolerance Limits in Budgeting during Procurement of Materials /Services


2010 SAP AG 2

Table of Contents

Project Systems Tolerance Limits in Budgeting during procurement of Materials / Services ......................... 3

Customization setting from Project System (PS) perspective ............................................................................ 4

Maintaining Planning Profile (SPRO) .............................................................................................................. 4

Maintaining Budget Profile .............................................................................................................................. 4

Maintaining Project Profile and assign Planning profile & Budget Profile ....................................................... 5

Defining Availability control for Budget profile with warning and error message ............................................ 5

Creating a Project ........................................................................................................................................... 6

Maintaining Cost Planning .............................................................................................................................. 7

Maintaining Original Budgeting (Budget has been assigned 110% of cost planning) .................................... 7

Related Content ................................................................................................................................................ 10

Disclaimer and Liability Notice .......................................................................................................................... 11


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2010 SAP AG 3

Project Systems Tolerance Limits in Budgeting during procurement of Materials /Services

Budget is an approved costs for a project and differs or same as with costs planning.

The below mentioned different types of Budget types can be used.

- Original Budget

Original Budget is initially allocated Budget.

- Budget Updates

Sometimes Budget needs to update from Original Budget

Availability control enables to control costs by issuing warning and error message during procurement ofmaterials or services

This paper is confined to the scope of Project systems (PS) with Budgeting control with Tolerance limits

The following settings can be done from the configuration


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2010 SAP AG 4

Customization setting from Project System (PS) perspective

Maintaining Planning Profile (SPRO)

Creating a new planning profile or changing existing ones by updating with necessary inputs

Project System ---- Costs --- Planned Costs --- Manual Costs Planning in WBS --- Hierarchical Cost Planning

--- Create / Change Planning Profile

Maintaining Budget Profile

Creating a new Budget profile or changing existing ones by updating with necessary inputs

Project System --- Costs --- Budget --- Maintain Budget Profiles


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2010 SAP AG 5

Maintaining Project Profile and assign Planning profile & Budget Profile

Project System --- Structures --- Operative Structures --- Work Breakdown Structure --- Create Project Profile

Defining Availability control for Budget profile with warning and error message

Project System --- Costs --- Budget --- Define Tolerance Limits


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2010 SAP AG 6

Creating a Project

T.Code: CJ01 / CJ20N

Cost planning acts as the base for an initial cost estimates to get approvals for Budgeting


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2010 SAP AG 7

Maintaining Cost Planning

T.Code: CJ40

Budget is the approved cost structure for a project

Maintaining Original Budgeting (Budget has been assigned 110% of cost planning)

T.Code: CJ30

Releasing the Budget is not the same as original Budget. You can release the Budget on total or annualvalues

Budget Release(Release is a Budget control though original Budget has been assigned $ 55,000 asBudget was released $ 40,000)

T.Code: CJ32


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2010 SAP AG 8

Create Purchase Requisition for a Material(As Availability control Tolerance has been maintained 90%warning for the Released Budget)

T.Code: ME51N


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2010 SAP AG 9

Create Purchase Requisition for a Material(As Availability control Tolerance has been maintained 100%error for the Released Budget)

T.Code: ME51N

Error Message as Budget was exceeded 0.50 USD

To correct the error message decrease the quantity of a material or updated the Released Budget


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2010 SAP AG 11

Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is notsupported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.

SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,and anyone using these methods does so at his/her own risk.

SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or

code sample, including any liability resulting from incompatibility between the content within this document and the materials andservices offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of thisdocument.

tolerance limits in budgeting during procurement of materials services

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