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Why Budget Assignments

Budget assignment is the process of distributing budgets between components of the structure that were created within HR Funds and Position Management. The original budget for monetary purposes created by Funds Management is read for the HR budget structure elements that were created there. This means that it's not an option to attribute budgets these budget structure components.

The process of assigning budgets involves the distribution of budgets for monetary items of those elements of the budget for HR that are created within Funds Management among the lower-level budget structure elements generated by HR Funds and Position Management for the purpose of managing personnel expenses. This kind or assignment of budgets is often referred to as a "top-down" budgeting.

The budget assignment is a foundation for the execution of this budget (e.g. to finance positions or individuals).

You should have established the Budget hierarchy . Also, you must have gone through the steps in The Implementation Guide (IMG) to HR Funds as well as Position Management:

You have defined the manner in which each budget structure type within your budget hierarchy has being classified (step: Overall Budget Next navigation step Definition of Element Types of Budget Structure Next navigation step Define the types of elements in your budget structure (step: Overall Budget Defining Budget Structure End of the navigation path ).

If you plan to use FTE budgets, you should have established the default values that are to be used for the different pay scale groups as well as particular pay scales (step: Start of the navigation path Overall Budget Next navigation step Pay Scales and Pay Scale classifications End of the navigation path )

You've identified the types of spending (step Integration Determining the Funds Required Types of Expenditures ).

Additionally, the budget overall should be approved as In the process of being revised or proposed.

Process Flow
It is possible to use a top-down budget assignments to distribute the budgets that have been transferred out of Funds Management among the HR budget structure elements that are used for personal expenses. This means that you show the money in the budget that is available and allocate these funds to the lower-level elements of the budget structure for personal expenses.

The following scenarios for budget allocation are feasible:

When the budget will be a cash one then enter the appropriate monetary amount that was in the budget.

In the event that it is a fully-time-equivalent budget (FTE budget) you must enter the initial budget with FTEs.

In all instances it is it is the R/3 System summarizes the funds across the different stages of the hierarchy. The FTEs that are converted are converted into cash amounts.

If you wish, you may modify, copy or delete budgeted elements of the structure at a later date.

These functions are only accessible when the status of the budget is Proposed.

You have assigned budgets to the element of the budget's structure. For monitoring and information purposes it is possible to use the Display the overall budget function to show and print out your total budget as well as the money allocated to it. You can also begin the process of checking for consistency.

After the status of the budget is changed after which you can begin allocating the budget in general (i.e. individuals or positions that are funded by the budgets allocated to structures of your budget).

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