Budgeting and Planning for Internal Orders in SAP FICO

Budgeting and planning for internal orders in SAP FICO help organizations control expenses and allocate resources effectively. This guide provides a detailed explanation of the steps involved in budgeting and planning for internal orders, with examples to illustrate each process.

Step 1: Define Budget Profiles

To enable budgeting for internal orders, define a budget profile:

  • Navigate to transaction code OKOB.
  • Create a new budget profile or modify an existing one.
  • Specify the Time Frame for budgeting (e.g., fiscal year).
  • Activate Availability Control to monitor costs against the budget.

Example: A budget profile "BP01" is created with availability control to track spending for internal orders.

Step 2: Assign Budget Profile to Internal Order Type

Link the budget profile to the relevant internal order type:

  • Navigate to transaction code OKZ1.
  • Select the internal order type (e.g., IO01).
  • Assign the previously defined budget profile (e.g., BP01).

Example: The budget profile "BP01" is assigned to internal order type "IO01".

Step 3: Create an Internal Order

Create a new internal order for budgeting and planning:

  • Use transaction code KO01 to create an order.
  • Select the internal order type (e.g., IO01).
  • Enter details such as Description, Company Code, Validity Dates, and Responsible Cost Center.

Example: An internal order "100001" is created for a project named "Office Renovation".

Step 4: Set Budget for the Internal Order

Define a budget for the internal order to control spending:

  • Use transaction code KO22 to set the budget.
  • Enter the internal order number and fiscal year.
  • Specify the Budget Amount (e.g., 100,000).

Example: A budget of 100,000 is set for order "100001" to manage project costs.

Step 5: Plan Costs for the Internal Order

Plan expected costs for the internal order:

  • Use transaction code KO14 to enter planning data.
  • Specify the Cost Element (e.g., 400000 - Salaries) and planned Cost Amount.
  • Distribute costs across periods, if applicable.

Example: Planned costs of 50,000 for "400000 - Salaries" are distributed evenly across 12 months.

Step 6: Monitor Budgets and Actual Costs

Track the budget, planned costs, and actual costs for the internal order:

  • Use reports like S_ALR_87012993 to analyze the internal order's performance.
  • Compare actual costs with planned costs and the allocated budget.

Example: A report shows that actual costs of 30,000 have been posted against a planned amount of 50,000, with a total budget of 100,000.

Step 7: Adjust Budget or Plans as Needed

Make adjustments to the budget or planning if circumstances change:

  • Use transaction code KO22 to revise the budget.
  • Use transaction code KO14 to update planned costs.
  • Ensure all changes are documented and approved.

Example: The budget for order "100001" is increased to 120,000 to accommodate unforeseen expenses.

Step 8: Close the Internal Order

Once the project is complete, close the internal order:

  • Ensure all costs are settled to the appropriate cost objects.
  • Change the order status to Closed using transaction code KO02.

Example: Internal order "100001" is closed after all expenses are finalized and settled.

Conclusion

Budgeting and planning for internal orders in SAP FICO provide a robust framework for tracking and managing project costs. By following these steps, organizations can ensure effective cost control and alignment with financial objectives.




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