Tolerance Limits in Budgeting During Procurement of Materials Services

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com
2010 SAP AG 1
Tolerance Limits in Budgeting
during Procurement of Materials
/Services
Applies to:
SAP Project System for Budgeting Tolerance limits with warning / error message - Version 6.0.
For more information, visit the Supplier 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 1
st
2010
Author Bio
Ramalingeswara Rao Vengala has a Bachelors degree in Engineering and worked as a Plant Manager
before joined to SAP. He has been working as a Principal Consultant with Intelligroup Inc., USA. He has
expertise in SAP Project System, Investment Management, Materials Management, Warehouse
Management, Document Management System and Easy DMS modules. He worked in many SAP
implementations and support Projects in India, Saudi Arabia, China, Egypt and USA.
Tolerance Limits in Budgeting during Procurement of Materials /Services
SAP DEVELOPER NETWORK | sdn.sap.com BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com
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
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 of
materials 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

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

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

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
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 annual
values
Budget Release (Release is a Budget control though original Budget has been assigned $ 55,000 as
Budget was released $ 40,000)
T.Code: CJ32
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

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
2010 SAP AG 10

Related Content
help.sap.com
http://help.sap.com/saphelp_erp60_sp/helpdata/en/86/98853478616434e10000009b38f83b/frameset.htm
sdn.sap.com
For more information, visit the Supplier Relationship Management homepage.
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 not
supported 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 and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.

Tolerance Limits in Budgeting During Procurement of Materials Services

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