3476226 - Budget is not calculated based on the G/L Account

All prerequisites are maintained correctly, and the system performs a budget check for the cost center but does not check per G/L Account.

SAP Business ByDesign

1. Go to the Cost and Revenue work center.
2. Go to the Budget Release view.
3. Select the Budget Release and click on edit.
4. Navigate to Release data.
5. For the Budget Category AA (AA refers to the Budget Category), the cost center maintained is YYY (YYY refers to the Cost Center ID) and for the period AA (AA refers to the Period), the Budget is XXXX (XXXX is the total budget for the period AA per Cost Center). The budget for the G/L Account ZZZ(ZZZ refers to the G/L Account ID) for the period AA is XXXX-1000.

1. Now, go to the Purchase Requests and Orders Work Center.
2. Go to the New Purchase Order common task.
3. Enter the required information.
4. In the items tab enter the amount XXXX.
5. In the Account Assignment sub tab select the Account Assignment as CC - Cost Center, select the Cost Center YYY and the G/L Account ZZZ.
6. Click on Check and notice that the system does not trigger any warning/error message.

You expect an error message to be shown since the budget for the G/L Account ZZZ is XXXX-1000.

The system is behaving as expected. For cost centers where the active budget is activated, the system performs budget checks at the level of the cost center, and the budget is checked at the granularity of the budget category.

The system calculates the budget per Budget Category, as the budget check is conducted at the granularity of cost center/budget category/fiscal period and the actual data in the journal entry, not per G/L Account.

The granularity of a General Ledger (G/L) Account refers to the level of detail at which financial transactions are recorded. In many real-world situations, especially when dealing with cost centers and budget planning, G/L Accounts might be too granular for effective budget checks.

To address this, a budget category is introduced, which serves as a higher-level aggregation point. Instead of conducting budget checks at the individual G/L Account level, the system aggregates expenses under a common budget category.

Active Budget Control in SAP Business ByDesign – B... - SAP Community

Active Budget Control, Budget Check, G/L Account, Budget Category, Cost Center, Budget , KBA , SRD-FIN-COR , Cost & Revenue , How To