SAP The Overall Budget Component

Definition

A component of HR Funds and Position Management where the personnel expenditure budget can be planned and executed.

Use

You plan and execute your personnel budget in what is referred to as an overall budget. The Overall Budget component allows you to monitor and control the funds available for personnel expenditure in the overall budget. This gives you a clear overview of the positions and costs in your overall budget. It also enables you to see whether or not budget conditions are adhered to and met.

Structure

The first stage of budget planning involves drawing up a draft overall budget. This overall budget contains objects. In HR Funds and Position Management, the objects in a budget hierarchy are referred to as budget structure elements.

You can allocate budgets (funds) to these budget structure elements so that they can be used for financing persons or positions. These budgets are expressed in the budget currency.

You can also define additional information for the budget structure elements (e.g. who is responsible for the budget, an external budget number, or a plain text description). If required, you can also define budgeting rules for budget structure elements with FTE budgets.

If you want to manage third-party funding (funding from an external sponsor), you can create a separate overall budget for this purpose.

The various phases of the budget execution process are managed by means of budget statuses, which are assigned to the overall budget.

Once you have released the overall budget, you can start to execute it. An important part of this process involves allocating the individual budgets of the budget structure elements for the purposes of financing personnel expenditures. If you have defined an organizational structure, you can also finance persons via the positions that they hold.

The budget execution process might also involve creating transfers and budget updates so that the overall budget can reflect new circumstances. You can also define and activate budgeting rules and reclassification rules.

You can view and print out the overall budget and the interrelationships between the various budget structure elements, persons, and positions from a range of perspectives. This will provide you with the information you need, and allow you to monitor your budget more closely.

If you want to start planning your budget for the following year, you can carry forward the current overall budget to the next financial year and use it as a basis for planning.

See also:

Overall Budget Creation

Budget Status

Budget Execution

Carrying Forward of the Overall Budget

Reporting Options