Central Budgeting with SAP Central Finance

This blog is focused on the Central Budgeting functionality with CFIN. When you read this, it is assumed that you have basic understanding of SAP Central Finance as a product and functionality.

With SAP Central Finance the intent is to move the finance processes to central system and execute in a harmonize way. With the functionality Central Budgeting the system allows to take a centralized approach while we manage budget in the Central Finance system and the consumption of budget happens in source system(s)

Central budgeting is supported for:

  1. Internal Orders
  2. Projects/WBS

   

Central Budgeting for Internal Orders

Budget is maintained in central system and is consumed via postings in source system. The budget check happens in real time via RFC connections.

Features

  • Central budget management in one system
  • Supported for 1:1 as well as N:1 for Internal Orders
  • Individual posting can have lines with Internal Order having budget in central system as well as budget in source system

Limitations

  • Company codes and IO types needs to be defined for budgeting so transaction KO22 can be used in display mode in the source system.
  • Only internal orders replicated with Cost Object Mapping can be part of Central Budgeting and manual creation of IO is not supported for budgeting in CFIN
  • Because of the N:1 mapping of internal orders, instead of being able to change budget using transaction KO22, you can only display budget in the source system.
  • Only the mapping scenario where internal order is mapped to internal order is supported.
  • Once Central Budgeting for an internal order type is activated, budget created in a source system will no longer be considered.

Customizing Prerequisites

  • RFC connections needs to be setup
  • CFIN scenarios of data replication should be running
  • SAP note 2914565 needs to be implemented
  • SAP note 2997608 needs to be implemented to use consistency check for IO budgeting
  • SAP note 3099366 needs to be implemented if IO budgeting and Projects budgeting are used together

Configuration in source system

Configuration consistency checks support the Central IO budgeting

Central Budgeting for Projects

Budget will be consumed in source system and maintained in CFIN system. This can be done for particular company codes and project profiles. Remote budget check happens during the postings in ECC system

Features

  • Centralized approach to managing budget for several source systems within one Central Finance system
  • Centralized budget reporting for several source systems within one Central Finance system
  • Remote budget check

Limitations

  • Networks are not supported
  • 1:1 mapping is only supported
  • Transaction CJ30 will be used in display mode only in ECC system
  • This is not supported when the source system is SAP S/4HANA cloud system

Customizing Prerequisites

  • SAP note 3025235 is implemented in ECC system
  • SAP note 3071616 is implemented to use transaction FINS_CFIN_CC
  • Budget profile usage and mapping action is mandatory
  • Projects/WBS replication set up is up and running via IDOCS

Set up in ECC system

Set up in target system (CFIN)

After this when the transactions will be posted in ECC on projects and WBS the budget will be consumed however the maintenance will be only in one system irrespective of the number of source systems we have in the landscape.

This is the major step in centralizing the finance function as budget is one of the core necessity.

Enjoy reading..