SAP Finance Financing from the Position Plan

Use

You use this function to finance employees of your organization from the budgets of budget structure elements (BS elements). Financing (providing funds for persons or positions from the budget of budget structure elements) is possible from two directions: You can assign a person or position to a BS element and assign a BS element to a person or position.

Prerequisites

If you want to carry out financing, you require a budget structure with BS elements and their budgets, an organizational structure with positions, personnel master data and links between positions and personnel master data. You can only finance objects with the budgets of allocatable budget structure elements (i.e. the budget structure elements in question must not be summarization items).

The following IMG activities must be carried out in Customizing of Position Budgeting and Control:

IMG Activity	Information
Set Up Financing Types for each Object Type	Which financing types (monetary amounts or full-time equivalents) are permitted for positions and persons
Origin of Funds Required	For which employee grouping does the system determine the financing requirement? In personnel budget plan management, the financing requirement is always determined from the working time and default values defined in the master data. However, it is possible not to define a financing requirement for an employee grouping
Maintain Evaluation of Absences	Effect of employee absence on financing For example, an employee who takes unpaid vacation does not require any funds

Features

If you provide budget from a person or position, a distinction is made between direct and indirect financing:

If you finance an employee directly using the budget of a budget structure element, you supply funds to cover the personnel expenditures incurred by this employee. This type of financing is referred to as direct financing because funds are assigned directly to the employee (and not via a position). This means that you can finance employees who are not assigned to positions.

You have hired a temporary worker for 6 months. This worker is not assigned to a specific position.

In the case of indirect financing, you can provide budget from a BS element for a position to cover personnel expenses for the employee assigned to this position. This form of financing is called indirect financing because it is carried out via positions and the employee is not financed directly.

You can also use indirect financing to reserve funds for positions that have not yet been staffed.

You can combine both types of financing as you please (in other words, you can finance a portion of the personnel costs incurred by an employee directly, and a portion indirectly).

If the budget structure element from which you want to finance the position or person is from a position plan with a financial year, the budget and financial requirements are available in monetary amounts or full-time equivalents. The type of budget possible for a BS element has been defined in Customizing of Position Budgeting and Control in the IMG activity Maintain Budget Structure Element Types. Only full-time equivalent budgets are available for position plans without a reference to a financial year.

If you have already defined a financing assignment, and you want to change/supplement this, you can only use budgets of budget structure elements with the same budget unit as the object that already provides financing.

When you create or change financings, the system checks the financing rules defined in Customizing of Position Budgeting and Control and availability control is run too. If you want to make exceptions for this check, define an exception reason in the financing. Check exceptions are defined in Customizing of Position and Budgeting Control and are used to allow exceptions to the financing rules or availability control defined.

The financing assistant generates a proposal for distributing the budget of a BS element for an employee or position.

If the funds required for an employee or position exceed the budget available (yellow traffic light), the financing assistant does not change this. You have to adjust the available budget manually.

When you create or change financings, you can enter legal grounds, which explain why a financing was created or ended. Legal grounds are defined in Customizing of Position Budgeting and Control.

Activities

To select a financing from the position plan, choose the following from the SAP Easy Access screen Human Resources ® Personnel Management ® Position Budgeting and Control ® Personnel Budget Plan Management ® Position Plan ® Change and then click on the tab page Fin. Position Plan.