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Funds management and Budgeting
Infocost delivers comprehensive services for establishing budgetary control systems for operational expenses. Our knowledge of SAP Finance and SAP Budgeting ensures accurate tracking and management of budgets.
SAP Funds Management / Budgetary Control System would be activated for the smooth functioning of the OPEX Budgeting processes
Key Changes in SAP System
Following are the key changes in SAP system:
- 1 Creation of the Funds Management Area and Assigning it with the Company Codes
- 2 Fund center and commitment items are the master data in FM Module to be linked the Cost center and GL Accounts.
- 3 Set up of the Budget tolerance level for issue of the warning and error messages, if budget exceeds at the time of actual transactions.
- 4 Additional budget supplement and transfers
- 5 Reporting of the budgeted numbers to show the actual spend against the budgeted values.
Have Questions?
Speak directly with our SAP costing specialists for immediate assistance.
Frequently Asked Questions
1. Marketing Spends
2. Service procurement
3. Stores and Spares
4. Repairs and Maintenance
5. Admin Expenses
6. Travelling and Consultancy
7. Other non-production related spends
How to control and monitor the actual spends is the main ask by any of the business owner and finance head, The answer is to control through the Budgetary Control System of SAP , Here we can set the budget for each type of spends on a monthly/quarterly/annual basis and set the tolerance level as well so if in any case the actual spends exceeds the limit of budget then system will stop that entry. For example: For Marketing Spends we have budget of 10 Crore for a quarter and due to some reason the actual spends on Marketing Spends is exceeding than the 10 Crore then system will stop that entry and will not allow to proceed, in this case we can save ourselves from extra spends on account of marketing,
If Management approves that additional spends then we can enter the supplementary budget of that amount say 1 crore and monitor that spends as well
All these types of monitoring are very important and critical from the point of view of funds managements
SAP standard module of Budgetary Control System to be implemented for these type of Expenses heads where management wants to control the budgets and monitor the actual spends w.r.t. the allocated budget
No additional license cost is required for implementation of the SAP Budgetary control system module. Only implementation cost is required to be incurred.
Assumptions:
Budgets would be available for the major expense heads to enter in the SAP system
Revenue (Income) is not part of the budget control process
Production related expenses (Raw material consumptions) is not part of budget control expenses
Additional activities to be performed such as the upload of the budget, release of the budget and monitoring of the budget values.
SOP for the entire budgetary control process
Project documents (Solution documents, Manuals and configuration documents etc.)
SAP Experts are there to handle the same and implement as per the SAP standard solutions.
Testing and migration to be carried out as per the industry best practices.
Post go live and Hyper care support would be there
2 week for preparing the solution documents based on the understanding and sign off
4 weeks for Realization and Testing the solutions in the DEV and Quality system of SAP
2 weeks for moving the TR To Production system and generate financial statement report in Production system
The opportunity to control and save is very high however as per the experience 2 to 3 crore of annual savings on this type of spends can be controlled through the implmentation of the Budgetary Control System.
M2 – Solution Document sign off
M3- UAT Sign off
M4- First month end closing
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