Create Cost Budget – A summary of the activity
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You can create four different types of cost budgets. They are
budgets for costs incurred for “Detail” cost centers,
budgets for costs and quantities at “Cost Element” level for each “Cost Center”,
budgets for costs and quantities of “Items” for consumption or output from a “Cost Center” and
budgets for input costs and quantities of different “Cost Elements” and output costs for “Items”.
A Cost Budget is created at the business unit level of the organization structure. It can also be created for the individual organization units that have been mapped to the business unit in which this “Cost Budget” business component has been installed. You can define a comprehensive “Aggregate” budget or a “Period” budget for a specified duration. You can enter the quantity or the value of the newly created budget. A newly created cost budget is always updated to a “Fresh” status.
This activity also allows you to generate a budget
based on existing budgets,
based on the actuals that have been incurred during an accounting period,
based on the average of the budget and the actuals that have been incurred for an accounting period or
based on multiple budgets that can be consolidated.
The quantity or the amount of the newly generated budget could also be increased or decreased from the quantities or values based on which it has been generated.
This activity also allows you to distribute the budget amounts and quantities of a “Period” budget based on an existing aggregate budget. The budget amount or quantity can be distributed based on a seasonal adaptation pattern. The seasonal adaptation pattern allows you to distribute the budget in a defined ratio among accounting periods.
This activity also allows you to authorize a cost budget. The system updates status of the cost budget as “Active”. The system also stores the login ID of the user and the system date along with the newly created budget details.
Getting familiar with the pages inside
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Create Budget Header |
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Create Budget Details |
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Generate Budget |
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Distribute Budget |
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Create Seasonal Adaptation |
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Attach Notes |
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View Budget |
What you can do in this activity
Create Seasonal Adaptation Pattern
Operational cost budgets can be created for “Detail” cost centers or for costs and quantities at “Cost Element” level for each “Cost Center” or for costs and quantities of “Items” for consumption or output from a “Cost Center” and for input costs of different “Cost Elements” and output volumes for “Items”. The duration of the cost budget can be assigned to it. An aggregate or a period budget can be created for the quantity or value.
Go to “Create Budget Header” page.
Enter the common information and create the budget header.
Go to “Create Budget Details” page.
Enter the budget values and create the budget details.
A budget can have multiple versions. All the versions of the budget must be defined for the same accounting period, same entity and of the same type. The system increments the version number sequentially when a new version of an existing budget is created.
Go to “Create Budget Header” page
Enter the budget number for which a new version must be created and create a new budget version.
Cost budgets can be generated based on old cost budgets or based on actuals that have been incurred during a selected period. Cost budgets can also be generated based on the average of the budget and actuals that have been incurred during a given period range or as a consolidation of more than one cost budget already created. The cost budget can also be increased or decreased for a selected accounting period.
Go to “Generate Budget” page.
Generate the budget.
The amount and the quantity of a period budget can be distributed among the accounting periods with the help of a seasonal adaptation pattern. A period budget can be distributed based on the selected aggregate budget.
Go to “Distribute Budget” page.
Distribute the budget.
Create Seasonal Adaptation Pattern
A seasonal adaptation pattern is used to distribute costs in a particular ratio for accounting periods. A seasonal adaptation pattern is used to apportion an “Aggregate” budget among the MAC periods that form a part of the period budget’s effective period based on a specified ratio.
Go to “Create Seasonal Adaptation” page.
Create the seasonal adaptation pattern.
A budget that is in the “Fresh” status can be authorized. The system updates the status of the budget after authorization as “Active”. Modifications cannot be made to the budget in “Active” status.
Go to “Create Budget Details” page.
Authorize the budget.
Go to “Distribute Budget” page.
Distribute and Authorize the budget.
Go to “Generate Budget” page.
Generate and and authorize the budget