SAP Budget Structure Element

Definition

An HR budget structure element is an object in an HR budget hierarchy.

Use

You can use budget structure elements to show the hierarchical relationships that exist in a budget hierarchy. Once you have defined the budget hierarchy, you can assign budgets to the budget structure elements in it.

These budgets represent preliminary estimates for personnel expenditure in a financial year. They are expressed in the budget currency. You use the budgets of the budget structure elements to finance persons and positions.

Structure

The attributes of a budget structure element are defined in Customizing by means of budget structure element types.

Budget structure element attributes defined by means of budget structure element types include:

• Budget units (full-time equivalents, or monetary values)

Budget units are the units in which the budgets assigned to a budget structure element are managed. The following budget models are available:

• Pooling Model
• Capacity Model (specific to Germany)

• Name

This refers to the name of the budget structure element (e.g. Personnel Expenditures, Salaries, Wages, Salaries for Civil Servants, etc.).

• Whether or not the budget can be allocated

This information determines whether the budget in question can be used to finance persons or positions, or whether it is merely a summarization unit.

SAP Defining a Budget Hierarchy

1. Choose Human resources ® Personnel management ® HR funds and position management ® Overall budget ® Create.

The Create Overall Budget: Initial Screen appears.

2. Select the tab page for the budget structure element type that you want to create as the top budget structure element (root object) in your overall budget.
3. Specify an abbreviation and name for the budget structure element.
4. If necessary, assign a different
validity period.
5. Specify the financial year for which you want to create the budget structure element.
6. Choose .

The budget structure element is created, and the Change Overall Budget screen appears.



You want to create the overall budget for the Department of the Environment:

Abbreviation	DE	Budget structure element type	Federal Office
Name	Dept. of Environment	Financial year	1999

7. Select the budget structure element for which you want to create further budget structure elements.



When you create budget structure elements, remember that budget structure elements with monetary budgets can only be broken down into budget structure elements with FTE budgets. You cannot, however, create a budget structure element with a monetary budget underneath a budget structure element with an FTE budget.

8. Choose .

The Create Budget Structure Element dialog box appears.

9. Select a budget structure element type.
10. Specify an abbreviation, name and, if applicable, a shorter validity period for the new budget structure element.



This step-by-step procedure does not deal with assigning budgets to the budget structure elements that you create (which you can do by choosing Details). The assignment of budgets to budget structure elements is covered by the process entitled Budget Assignment.

11. Choose Check, and then choose .

The budget structure element you have just created is now visible on screen.

12. To break down a budget structure element further, repeat steps 6 through 9 above until you have defined the entire budget hierarchy.

You want to break the budget structure element Dept. of Environment down further into the budget structure elements Regional Office, Personnel Expenditure, Personnel Expenditure for Civil Servants and Salaried Staff.

By repeating steps 6 through 9, you create the following budget structure elements:

Budget Structure Element Type	Regional Office	Personnel Expenditure	Wages and Salaries	Wages and Salaries
Object Abbreviation	RO	PE	PEC	PES
Name	Regional Office	Personnel Expenditure	Personnel Expenditure for Civil Servants	Personnel Expenditure for Salaried Employees

SAP Definition of Budget Hierarchy

Purpose

This process describes how you can define and edit a budget hierarchy for an overall budget that you want to set up in HR Funds and Position Management.

The budget hierarchy is used to define the budget structure elements and to show how they are linked hierarchically. Defining a budget hierarchy is the first step in setting up an overall budget.

Budgets (either monetary or FTE) are assigned to the budget structure elements in the budget hierarchy. These budgets can then be used to finance persons and positions.

In other words, the budget of a budget structure element contains the funding that is used to finance persons and positions in an overall budget.

In this process, you define the fundamental structure of the overall budget. This process does not, however, involve assigning budgets to budget structure elements.

Prerequisites

You must have made the necessary settings in the Overall Budget section of Customizing (and, in particular, the section Defining Budget Structure Element Types. You can then tailor the budget hierarchy to your organization’s individual needs.

Process Flow

1. First, you specify basic information for a new overall budget (the financial year, and the top budget structure element).
2. You create more lower-level budget structure elements under this top budget structure element (root budget structure element), and in this way define a hierarchical structure for the overall budget.

Example of a Budget Hierarchy

The following budget hierarchy is used in the examples found in this documentation.

3. If required, you can specify additional information on the budget structure elements (e.g. who is responsible for a budget, the external budget number/name and a plain text description).
4. You can also assign the budget structure elements and their budgets to employee groups and subgroups, or to organizational units and positions (via earmarkings).

Result

You have created a budget hierarchy containing budget structure elements to which you can now assign budgets.

If an overall budget already exists, you can follow the Carrying Forward of Overall Budget process to carry the budget hierarchy forward to the next financial year. This means that you do not have to re-enter budget structure elements that already exist.

It is possible to add new budget structure elements to an overall budget that has already been executed (e.g. because the government has approved additional budget funds).

See also:

Defining a Budget Hierarchy

Editing a Budget Hierarchy

Budget Structure Element

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

SAP Standalone HR Funds and Position Management

Purpose

The R/3 HR Funds and Position Management component gives you a detailed view of your overall personnel budget, and links this budget to the staff and positions in your organization.

HR Funds and Position Management allows you to finance and perform planning for persons and positions efficiently. One of the advantages of this is that you can use full-time equivalents (FTEs) to budget personnel expenditures.

HR Funds and Position Management is designed specially for:

• All types of public administrative bodies (federal, regional, or local)
• Public owned organizations
• Non-profit-making organizations such as universities, research centers, associations, and foundations
• Private-sector companies that wish to budget their personnel expenditure

Implementation Considerations

The R/3 Personnel Administration component must also be available.

It is recommended that the R/3 Organizational Management component should also be implemented, since the HR Funds and Position Management component uses some of its functionality.

Features

The R/3 HR Funds and Position Management component provides the following functionality:

• Create and execute an overall budget
• Define and manage an organizational structure
• Budget personnel expenditure
• Manage third-party funding for personnel expenditure
• Finances employees and positions for specific periods of time (monetary amounts or full-time equivalents)
• Define and activate budgeting rules
• Define and activate reclassification rules
• Earmark sections of the budget for sections of the organization
• Transfers
• Budget updates
• Manage the various execution phases of the personnel budget
• Carry forward the overall budget
• Reporting options

See also:

The Overall Budget Component

The Organization Component

SAP HR Funds and Position Management (PA-PM)

You have called up the Application Help. The following information is available for this R/3 context:

Two versions of the R/3 HR Funds and Position Management component are available: Please select the version used in your organization to call up the documentation for this version.

• 
  
Standalone HR Funds and Position Management
• 
  
HR Funds and Position Management Integrated with Funds Management